Electric cars generally cost more than conventional automobiles. But the pricing gap between the two is closing.
According to the latest data from Kelley Blue Book, the average transaction price for electric cars was $55,544 in December vs. gas-powered vehicles at $49,740. The industry’s electric vehicle (EV) leader Tesla had average transaction prices of $55,258, about flat from a month earlier.
In general, electric cars start at $29,280, including destination charges, for the 2025 Nissan Leaf, to upwards of $100,000 for a luxury EV like the 2025 Mercedes-Benz EQS SUV (starts at $106,400, including destination charges).
Sales of electric vehicles (EVs) in the U.S., according to the latest counts from Cox Automotive’s Kelley Blue Book, jumped 15.2% year over year in the fourth quarter of 2024 to 365,824, setting a new volume record for any quarter.
The federal government offers qualified buyers electric car incentives of up to $7,500 for select new fully electric, plug-in hybrid, and fuel-cell vehicles. Those looking to lease an EV may find a dealership offering qualified buyers the same tax credit. Buyers looking for used electric cars may qualify for up to $4,000 on specific models. That, too, helps lower the price and close the gap in the pricing of electric vehicles compared with their gas counterparts. However, when the new presidential administration takes over this month, it’s likely that EV incentives may change.
Also, fully electric cars run on electricity and do not need gasoline or regular oil changes and other maintenance that gas cars require, which is another cost savings. Typically, fuel costs more than electricity, which is another money saver for people who drive electric vehicles.
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