- The Nissan Leaf, Nissan Ariya, Hyundai Ioniq 6, Tesla Model 3 and Toyota bZ4X were the cheapest new electric vehicles in America in the first quarter.
- Thanks to a combination of government and dealer incentives, consumers were able to purchase these vehicles for less than $41,000.
- Falling new car prices are pushing down prices for used electric vehicles, making the technology cheaper for buyers but more expensive for automakers.
Affordability has become an increasing concern for buyers curious about an electric vehicle, but there was some good news for them in the first quarter of 2024, as the five cheapest electric vehicles on the market were all under $41,000. However, concerns remain about the sustainability of these prices.
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The five cheapest electric vehicles on the market in the first quarter of 2024 (from most expensive to least expensive) were the Toyota bZ4X, Tesla Model 3, Hyundai Ioniq 6, Nissan Ariya and Nissan Leaf. However, these vehicles relied heavily on discounts and incentives to achieve such low prices, making them expensive for automakers.
Read: Global electric vehicle sales will break records in 2024 despite sluggish demand, energy experts say
While the Toyota bZ4X had an average transaction price (before rebates and government tax breaks, if applicable) of $48,087 in the first quarter, the average actual sales price (after accounting for all buyer incentives) was $40,647, according to Autonews. Automakers are working to boost sales to increase production and capture economies of scale by cutting prices, but those cuts may not be sustainable, experts say.
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And the Toyota wasn’t the only model available at deep discounts. Nissan recorded the biggest price drop for the Ariya. The model’s average selling price ($35,556) decreased 31 percent compared to the average transaction price ($51,438).
Top 5 cheapest new electric vehicles, Q1 2024
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Tesla offered customers the smallest discounts, as the Model 3’s average selling price of $40,547 was just 7 percent lower than the average transaction price of $43,649. However, the American automaker has aggressively cut prices this year.
As prices for new electric vehicles have fallen, they have also fallen in the used segment, reports Cox Automotive. Between September 2022 and April 2024, the value of an average used electric vehicle fell from $63,069 to just $33,645.
Today, used electric vehicles are almost on par with combustion engine vehicles, costing on average just 1.05 times more. At their peak, used electric vehicles cost 1.81 times as much as internal combustion engine vehicles.
While used electric vehicle prices continue to fall faster than the rest of the market, prices have fallen across the industry. Overall wholesale values for the market fell 13.7 percent in April 2024 compared to the previous year and are at their lowest level since January 2020.
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