These 20 electric cars are selling for less than MSRP

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There are many myths about buying electric cars these days. Many people assume that because Tesla has established a no-haggle online sales policy, this applies to all other electric cars as well. We all hoped that electric cars would mean the end of the haggling and mind games that dealers are known for – tactics that most buyers say they detest.

There are always people willing to pay stupid money for a car to be the first in the neighborhood or club to own one. But for most of us, paying sticker price or more is something we’ve been trained never to do. Now there seems to be good news for those who want an electric car and a good deal.

CNN reported this week that many dealers are starting to offer discounts on electric cars as inventories increase now that full production has been achieved following supply chain problems that plagued the industry during and after the Covid 19 pandemic. Said Joseph Yun, analyst to Edmunds users CNN that automakers find themselves forced to appeal to more mainstream consumers who are less interested in being early adopters and more interested in getting a good deal.

Pat Ryan, CEO of the car shopping app co-pilot, added this surprising news. Introduced by Toyota 30 years ago, hybrid models are now a reliable technology and attract more consumer interest than electric cars. They sell for more than their sticker price and are quickly moved off dealer lots, according to data from Edmunds. “The adoption curve for hybrids is way ahead,” Ryan said.

In September 2022, electric cars purchased in the United States, excluding Tesla, were selling for about $1,500 over sticker price. A year later, those same electric cars are selling for about $2,000 below sticker price, according to Edmonds. This is a much bigger change than for the industry as a whole. The average new vehicle in America sold for about $900 below sticker price in September.

Tesla has aggressively scaled back its electric cars in 2023. The base price for the Tesla Model 3 is 17% lower now than it was at the beginning of the year. This puts pressure on other manufacturers and their dealers to adjust their prices as well. High interest rates are also a factor. Many of those acres of cars you see sitting on dealer lots are financed. The longer they sit, the more dealers have to pay in interest, which creates pressure to move them off the lot and into someone’s driveway.

Some of the most popular EVs are now selling for hundreds or even thousands of dollars below sticker price to boost demand, and manufacturers are offering incentives to dealers as well. According to Business Insider, here are 20 electric cars selling below MSRP today, listed in alphabetical order. The list does not include sales of Tesla, Rivian or Lucid EVs, as those companies do not publicly share their sales data.


Audi e-tron GT

Average sticker price: $118,777

Average transaction price: $111,542

Average discount: 6.1% or $7,235

BMW i4

Average sticker price: $64,598

Average transaction price: $62,353

Average discount: 3.5% or $2,245

Ford F-150 Lightning

Average sticker price: $78,116

Average transaction price: $76,725

Average discount: 1.8% or $1,391

Ford Mustang Mach-E

Average sticker price: $56,895

Average transaction price: $55,909

Average discount: 1.7% or $986

Genesis GV60

Average sticker price: $66,896

Average transaction price: $65,046

Average discount: 2.8% or $1,850

Hyundai Ioniq 5

Average sticker price: $53,879

Average transaction price: $52,993

Average discount: 1.6% or $886

Hyundai Ioniq 6

Average sticker price: $52,049

Average transaction price: $51,465

Average discount: 1.1% or $584

Hyundai Kona Electric

Average sticker price: $38,323

Average transaction price: $37,451

Average discount: 2.3% or $872

Let the EV6

Average sticker price: $56,748

Average transaction price: $54,917

Average discount: 3.2% or $1,831

Kia Niro EV

Average sticker price: $43,918

Average transaction price: $42,685

Average discount: 2.8% or $1,233

Lexus RZ 450e

Average sticker price: $64,407

Average transaction price: $61,758

Average discount: 4.1% or $2,649

Mercedes-Benz EQB

Average sticker price: $63,337

Median transaction price: $59,570

Average discount: 5.9% or $3,767

Mercedes-Benz EQE SUV

Average sticker price: $87,179

Average transaction price: $81,146

Average discount: 6.9% or $6,033

Nissan Aria

Average sticker price: $51,912

Average transaction price: $49,654

Average discount: 4.3% or $2,258

Nissan Leaf

Average sticker price: $33,745

Average transaction price: $32,926

Average discount: 2.4% or $819

Porsche Taycan

Average sticker price: $139,575

Average transaction price: $137,352

Average discount: 1.6% or $2,223

Toyota bZ4X

Average sticker price: $49,387

Average transaction price: $48,191

Average discount: 2.4% or $1,196

Volkswagen ID.4

Average sticker price: $50,694

Average transaction price: $47,812

Average discount: 5.7% or $2,882

Volvo C40 Recharging

Average sticker price: $61,419

Average transaction price: $55,498

Average discount: 9.6% or $5,921

Volvo XC40 Recharging

Average sticker price: $60,998

Average transaction price: $53,241

Average discount: 12.7% or $7,757


Electric cars and price cuts

The standout here is Tesla. There are no negotiations with the company. The price you see on the website is the price you pay. By the end of last year, his car prices were going up, up, up. Then in December, Tesla began offering customers a $7,500 discount on most models to boost sales in the fourth quarter. This made perfect sense, as these cars would be eligible for a $7,500 federal tax credit in just a few weeks. Who wouldn’t delay the purchase for a short while to save $7,500?

A series of price cuts this year brought the base Tesla Model Y down to $43,990 before federal and state rebates, taxes and fees. The Model 3 costs $38,990 before rebates and fees, according to Tesla’s website. Both models qualify for the full federal EV tax credit, making the effective price of these cars $36,490 for the Model Y and $31,490 for the Model 3. At those prices, both are well below the average transaction price of a new car in America today , which is $48,334 as of the end of July according to Kelly’s Blue Book.

So no haggling with Tesla. This is good. But it also means that the price you pay could be thousands more than what others might pay in a few weeks or a few months. Price cuts also have a way of taking money out of the pockets of current owners who bought when the price was high. Consider someone who bought a Model Y when it sold for $66,000.

As soon as Tesla dropped the price of the Model Y, that car bought 18 months ago is now worth thousands less in trade-in. In a sense, Tesla has robbed the pockets of its loyal owners to the tune of millions of dollars. one CleanTechnica staff member saw the price of the Model 3 he bought in the spring drop by $8,000, meaning his equity went down by that amount, but his car loan amount didn’t. The market gives and the market takes away.

The bottom line is, never buy a car thinking you’re going to make money off of it. Cars are some of the worst investments anyone can make. For those who enjoy dealing with the sales staff at their local dealership, now is the time to score an electric car deal. For the rest of us, it’s back to business as usual, unless you want to buy online and risk the whims of Elon Musk and his minions. The choice is yours, although neither option is all that satisfying.


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