Electric vehicles (EVs) are currently spending nearly three months on dealer lots before being sold, indicating a significant slowdown in sales compared to the previous year. This extended stay on dealer lots is resulting in dealers becoming more desperate to move inventory, giving customers a wider range of options and more negotiating power. With an average of 81 days before being sold, EVs are taking much longer to sell compared to the industry average of 57 days.
The surplus of EVs on dealer lots is also leading to automakers offering more leasing deals, discounts, and incentives to entice customers. This has helped reduce the average price paid for a new EV in July to $58,619, which is 1% lower year-over-year. Leasing deals have become a popular affordability hack for EVs, as they offer lower monthly payments compared to traditional car loans. Leasing an EV can be a more cost-effective option, especially with the current restrictions on qualifying for the federal tax credit for EVs.
Affordability has become a key factor in the EV market as more frugal shoppers are entering the segment. While the average price paid for an EV still exceeds the average price paid for any new car by about $10,000, leasing deals are making EVs more accessible to a wider range of customers. Automakers are leveraging attractive leasing offers to incentivize customers to choose electric models over traditional gas-powered vehicles.
One example of a successful leasing deal is Hyundai’s offer for the Ioniq 5, which starts at $41,800. Customers can lease the Ioniq 5 for $187 a month for 33 months, with approximately $4,000 due at signing. This leasing option provides a more affordable alternative to purchasing the vehicle outright, especially when considering the potential savings on monthly payments and the federal tax credit.
Overall, leasing deals are playing a crucial role in making EVs more affordable and appealing to customers. With leases accounting for almost 70% of all new EV sales, it’s clear that customers are prioritizing monthly payments over the sticker price of the vehicle. As dealers and automakers continue to offer competitive leasing deals and incentives, now is a great time for customers to explore the options available in the EV market and take advantage of the affordability hacks that leasing provides.
