4 Ways Discounts Are Transforming the Electric Car Market
Written by
Cameron Diiorio
Edited by
Cory Dudak
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With discounts and incentives being implemented, many potential car buyers are ditching their gas-powered vehicles and making the switch to electric vehicles (EVs). According to Motor.com, over 1 million EVs are expected to be sold in the US this year.
So what is in store for future electric vehicle owners? Here are 4 discounts and price drops that encourage people to consider an EV as their next car.
Saturated Market and Luxury Cars
Going into 2024, the price of EVs has steadily decreased due to the influx of more options. Rather than a few, almost every major manufacturer offers an EV or has plans to. For example, Tesla, once the market leader, has competition from luxury brands such as Mercedes and BMW.
This has led to a big discount on Tesla vehicles, the once-coveted car many people were on months-long waiting lists for.
“Tesla is aggressively cutting prices as it tries to maintain its outsized market share with an aging model lineup,” according to an article on CNN.com. “The base sticker price for a Tesla Model 3, for instance, has dropped 17% over the past year.”
Discounts on Non-Luxury EVs
The base price of EVs is a big concern for many considering purchasing one, as EVs cost more than a gas-powered car. “Even amongst mainstream brands like Volkswagen and Hyundai, EVs tend to be among the more expensive models,” the article on CNN.com reported.
With more EVs available to the average consumer, the market is changing to be more budget-friendly as EV buyers are getting more for their money. And certain models in the non-luxury field, such as the Volvo XC40 Recharge, are seeing discounts around the $7,000 mark.
These discounts can make an electric vehicle more affordable for potential buyers.
Tax Credit
Those who purchase an EV going forward may receive a tax credit. For instance, the IRS offers a clean vehicle tax credit for new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) [purchased] in 2023 or after.
Note that the IRS has extensive criteria to qualify for the tax credit, which may include the date the car was purchased and your household income at the time. You can see a full list of qualifications for the EV tax credit on the IRS website.
Gas Vehicle Retirement
In certain states such as California, individuals may receive money for retiring old gas-powered cars. These funds can be used towards an electric vehicle. “The Consumer Assistance Program provides $1,000 to $1,500 to support the retirement of old, polluting vehicles,” reported ElectricForAll.
Be sure to check if your state is eligible for this cash payout. This discount towards your next car is also dependent on your household income.
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