Electric vehicles are currently piling up on dealer lots, providing prospective buyers with more options and negotiating power. As of July, it took an average of 81 days for EVs to be sold, up 75% from the previous year and longer than the industry average of 57 days. With a surplus of EVs and slower growth in sales, dealers are offering more leasing deals and discounts to move these cars off their lots. The average price paid for a new EV in July was $58,619, 1% lower year-over-year, making it a more affordable option compared to plug-in hybrids. Affordability has become a key factor in the EV market as more frugal shoppers seek these eco-friendly vehicles.
### The Benefits of Leasing an EV
Leasing has become the best affordability hack for potential EV buyers, particularly for those focused on monthly payments rather than the upfront cost. Qualifying for the $7,500 federal tax credit for EVs has become more challenging due to restrictions, making leasing a more appealing option. Leased EVs are not subject to the same pricing or income restrictions as purchased vehicles, allowing for more attractive leasing deals from automakers. Companies like Hyundai are offering EVs like the Ioniq 5 for low monthly payments, making it a more accessible option for buyers. Leasing has become a popular choice for EV sales, accounting for nearly 70% of all new EV purchases.
### Discounts and Incentives
Dealers and automakers are heavily relying on smaller down payments and manageable monthly payments to incentivize buyers to choose electric vehicles. With the increased competition and surplus of EVs, companies are offering discounts and incentives to attract more customers. These deals may include cash rebates, zero-percent financing offers, or discounted lease terms. By taking advantage of these discounts and incentives, buyers can save money on their electric vehicle purchase and enjoy the benefits of driving an eco-friendly car.
### Demographic Shift in EV Buyers
As the demographic of EV buyers shifts towards more frugal shoppers, affordability becomes a significant factor in the purchasing decision. Early adopters of EVs were often wealthier individuals willing to pay a premium for environmentally friendly technology. However, as the market expands, more practical consumers are looking for affordable options that fit their budget. With leasing deals and discounts becoming more prevalent, EVs are becoming a more accessible choice for a broader range of consumers.
### Future of Electric Vehicles
The future of electric vehicles looks promising as advancements in technology continue to improve performance, range, and affordability. As automakers adapt to changing consumer demands and preferences, the EV market is expected to continue growing. With more options, incentives, and affordability hacks available, prospective buyers can find the perfect electric vehicle to fit their needs and budget. As the industry evolves, the transition to electric vehicles will become more accessible and appealing to a wider audience.
In conclusion, the current surplus of electric vehicles on dealer lots presents an excellent opportunity for prospective buyers to find great deals and discounts on eco-friendly cars. By taking advantage of leasing deals, discounts, and incentives, consumers can save money on their EV purchase and enjoy the benefits of driving a more sustainable vehicle. As affordability becomes a key factor in the EV market, automakers and dealers are working to make electric vehicles more accessible to a broader range of consumers. With the future of electric vehicles looking bright, now is an excellent time to consider making the switch to an environmentally friendly car.