One of the barriers to electric vehicle ownership for many eco-curious buyers is price. Assuming battery technology continues to advance with costs falling precipitously, experts predict that an average EV might be priced on a par with conventionally fueled vehicles by 2024, and could even become cheaper after that. In the meantime, however, most EVs command higher sticker prices than comparable vehicles that pack an internal combustion engine.
But they’re not all as expensive as one might think.
With the average price of a new vehicle in the U.S. currently at around $35,000, we found six new electric cars that fall below that threshold, and cost much less when one factors in the one-time $7,500 federal tax credit. If you qualify for it, the credit effectively drops the starting price for the absolute cheapest EV on the market to just over $17,000. That’s about the cost of a 2019 plain-vanilla subcompact gas-fueled car. And that’s not counting the incentives doled out by a handful of states that can sweeten the deal even further.
Unfortunately, models from General Motors and Tesla are effectively seeing a price hike during 2019 because the $7,500 tax credit granted to EV buyers is being phased out for those brands. The credits are set to expire during the calendar year after an automaker sells 200,000 battery-powered models (this includes both EVs and plug-in hybrids).
Tesla hit that mark last July, which means the federal credit for the Model 3, Model S, and Model X dropped to $3,750 for vehicles on January 1, will fall to $1,875 on July 1, and will be eliminated on December 31. To help soften the blow, Tesla has subsequently cut the price of each of its three models by $2,000.
With GM having reached the 200,000-unit mark at the end of 2018, credits on the Chevrolet Bolt EV, and the soon-to-be discontinued Volt will begin phasing out on April 1, 2020. However, there’s a chance Congress may extend, revise, or even repeal the EV tax credits in the months ahead, so stay tuned.
In the meantime, we’re featuring the six cheapest electric vehicles in the U.S. for the 2019 model year in the accompanying slideshow. We’re noting the manufacturer’s suggested retail price (MSRP) for the base model in each line and its effective cost after taking the $7,500 federal tax credit. All prices include the automaker’s destination charge, but not options, fees, or taxes.
If any of these rides are still too rich for your budget, be sure to check out the extensive listings of used electric vehicles being offered for sale here on MyEV.com, the Internet's totally free marketplace for EV buyers and sellers.