New Car Market: Here’s Why Only a Few Hybrids and EVs Are Cheaper Right Now
Written by
Dawn Allcot
Edited by
Nicholas Morine
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Is the surge in EV sales over? Or are buyers simply choosing their electric vehicles more carefully? Prices of four models of electric vehicles or hybrids are now selling for below MSRP, according to iSeeCars.com.
Six cars in total currently sell for less than MSRP, while another 16 vehicles are priced within 2% of the MSRP. Of the latter category, four are also EVs or hybrids. In today’s era of overinflated new vehicle prices, a car that is selling for just slightly above MSRP could be considered more affordable.
Why are EVs and hybrids so prominent on the list? And which energy-efficient vehicles are a relative bargain today?
The four EVs and hybrids on the list of vehicles priced below MSRP are:
- Chrysler Pacifica Hybrid.
- Ford F-150 Hybrid.
- Hyundai Ioniq 5.
- Hyundai Ioniq 6.
In the report, Karl Brauer, iSeeCars executive analyst, attributed “relatively stable gas prices over the past several months” to a reduced demand for hybrids and EVs. “We’ve seen similar pricing shifts on the used side, with our last used car pricing study showing electric vehicles dropping by 30 percent in value.”
Also, the Inflation Reduction Act eliminated the tax credits on the Hyundai Ioniq line because the cars are not made in the U.S. Losing the $7,500 credit made the vehicles less enticing and dealers had to dramatically reduce prices to compete with other EVs that still qualify for the credit.
In general, the report showed car prices across the board are still inflated, with the average new car priced at 8.5% above MSRP. Rising interest rates and recession fears seem to have little-to-no impact on new car demand or sales, according to the report.
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