Prices Of New EVs Crater
Auto industry firm iSeeCars has just released its “20 New Cars Priced the Highest Over MSRP and 15 Priced Below MSRP.” According to the study, the average new car sale in January was 7.2% above MSRP at $45,880. The cars sold below MSRP were heavily weighted toward EVs. This is another sign of the slowing demand for what was once the hottest segment of the auto market.
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Among the EVs that sold for the lowest price against their MSRPs, the worst performance for January was the Hyundai Kona Electric, which was below 4.6% at $36,211. The small SUV gets the government’s $7,500 EV credit, which should make it attractive. Hyundai offers financing at an unusually low .99% APR for 48 months, which should drive sales. New car loan rates can run as high as 6% now. Hyundai sells 11 SUVs and hybrids. The Hyundai Kona Electric is the least expensive among these.
The VW ID.4 was the new car with the second-largest sales price below MSRP in January. The drop was 3.6% below to $48,740. The VW model also qualifies for the $7,500 tax credit. VW offers a lease incentive of as much as $13,000 for one of the ID.4 models. Once again, the terms people can get to buy the VW ID.4 are unusually attractive.
Tesla has no model on the list of 15 new cars sold below MSRP in January. Even as it drops prices aggressively to pick up market share, new customers are not underbidding these.
The EV marketplace continues to suffer from the perception that EVs are priced too high compared to gas-powered cars and have limited ranges, long charging times, and too few chargers. The car companies are paying for that while struggling to sell their cars at MSRP.
