Why This Might Be The Perfect Time To Buy A New EV In The US
Electric vehicles are currently within spitting distance of the average cost of a new car in the United States.
Key Points:
- The latest E-Vision Intelligence Report from J.D. Power found that the current average transaction price for a new battery-electric vehicle (BEV) is $45,600. That’s a scant $500 more than the average for traditional gas-powered cars.
- That average transaction price includes the $7,500 tax credit that many buyers will qualify for. President Trump has said he plans to remove that tax credit, which means prices are likely to rise. Tariffs may also increase prices.
- On the positive side, there are 137,000 electric vehicles currently in inventory, all of which are still eligible for federal tax credits and are not subject to tariffs.
If you’re in the market for a new car and are open to the option of going electric, now may be the perfect time to buy. J.D. Power’s latest E-Vision Intelligence Report suggests that EVs have basically hit price parity with other vehicle types. The average EV transaction price stands at $45,600. That’s just $500 more than a non-EV.
Now, don’t get too excited. If President Trump kills the $7,500 tax credit that many new EV buyers qualify for, that average transaction price will surge to $51,200. What’s more – and we must admit it’s not always easy to keep track of what’s happening with tariffs – any price increases caused by future vehicle tariffs would also increase that transaction price.
Fortunately, there are 137,000 EVs currently in inventory, and that represents 6.4% of total new vehicle inventory. None of those vehicles currently on lots or showrooms are subject to tariffs, and as of right now, qualifying buyers would still get the EV tax credit.
As J.D. Power points out, “This combination of supply, existing incentives and the threat of significantly higher prices on the horizon could make this the most opportune time to be in the market for a BEV.”
Growing up in a family obsessed with performance and as the son of an automotive engineer, Jeremy Korzeniewski has spent his entire life as a car enthusiast. Also an avid motorcyclist, Jeremy has spent the last two decades writing about the transportation industry and providing insights to many of the largest automotive publications in the world.
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Sorry, I just can't spit that far.