Is Right Now the Best Time to Buy an Electric Vehicle?

Electric vehicles have been slowly gaining popularity among car buyers. Although 40 million people said they considered buying a battery-electric vehicle next time they hit up a dealership, only one million were on the road in the U.S. in 2018. A big reason for this gap was the price since these vehicles can cost more than double the average of a gas-powered car.

However, there’s good news for anyone hoping to afford an electric car. Prices are dropping. So, it might be the best time to finally switch to an electric car. There are several factors that play into this trend, so understanding them can help you make an informed decision as a consumer.

Here’s why now could be the best time for you to buy an electric car.

Dealerships Are Dropping Prices on Electric Vehicles

2020 has been an interesting year for automakers. The sudden slowdown of the economy has made buying a new car the last thing on consumers’ minds. The lack of sales means that dealerships are facing an oversupply. In turn, they are trying to entice buyer interest by lowering prices on electric vehicles.

Some of these sales are being advertised, while other dealerships are quietly lowering prices. Generally, you can find an electric vehicle at five to nine percent below MSRP.

Moreover, Consumer Reports found those savings could go further based on incentive offerings or if you negotiate. Some examples include:

  • 24 percent below MSRP on the Chevrolet Bolt EV hatchback;
  • 15 percent below MSRP on the Toyota Avalon Hybrid sedan;
  • 14 percent below MSRP on the Ford Fusion Hybrid sedan;
  • 13 percent below MSRP on the Toyota Camry Hybrid sedan, and;
  • 11 percent below MSRP on the Toyota Corolla Hybrid sedan.

Also, Tesla has dropped the price of the Model 3, Model S, and Model X. Consumers might be able to find savings ranging from five to six percent. For example, there’s potential to save as much as $5,000 on the Model S Long Range Plus sedan.

It’s also worth noting this sector has seen downward pricing trends prior to this time of economic uncertainty. Car and Driver reports a 13.4 percent decrease in electric vehicle costs after just one year on the market. Specifically, the average price has dropped from $64,300 to $55,600. There’s a possibility this decrease could continue if manufacturers focus less on making luxury electric vehicles.

Why You Should Consider Making the Switch

To some, it might seem unnecessary to switch from gas to electric-powered vehicles. However, there are benefits for both the consumer and the planet.

For starters, consumers can save money in the long run by opting for a plug-in vehicle instead of one that requires you to visit the gas station. It can cost less than half as much to fuel an electric vehicle instead of a gas-powered car. Although electric vehicles might cost more upfront, experts suggest this gap offsets the amount of money you would save on fuel and maintenance throughout its lifetime. Just make sure to consider the cost of electricity in your city as this information will give you an idea of how much it’ll cost you to charge the car at home.

In addition to lower fuel costs, drivers also enjoy better fuel economy. This means a single charge can let you travel further than a tank of gasoline would in a regular vehicle. The batteries are also designed to last longer — up to 15 years, in fact — though you could get warranties from manufacturers if it expires sooner.

Perhaps the biggest reason to make the switch is to lower your carbon footprint. Hybrid and plug-in vehicles reduce emissions that contribute to climate change. The less carbon being emitted into the air, the healthier our bodies and the planet will be.

Search Online for Deals on Electric Vehicles Near You

When manufacturers want to sell cars, they will pass savings onto dealerships with rebates and incentives. It’s usually up to individual dealerships to determine how much of those savings they want to pass onto customers. This means the price of vehicles can vary depending on where you live, making it important for consumers to search online for current incentives near you through individual car dealer websites.

You can find out the MSRP of vehicles and potential incentives to qualify for by searching online. Just make sure to enter your ZIP code or to find accurate pricing for your area. Before settling on a vehicle, compare different models and promotions to find out where you can save the most money on a new electric vehicle.

42