The good news is that electric cars are becoming more popular, which means consumers have more choices at lower prices.

The bad news is that the average price of all new nonluxury vehicles — electric or not — was $44,584 by late 2022 according to Kelley Blue Book. This guide provides pricing information for automotive manufacturers. The average monthly car payment now exceeds $700, thanks to rising interest rates.

This means that people looking for an EV are caught in the crosswinds between two opposing trends. There is an increase in EV options at “average” prices, but a rapidly rising “average” price.

Are electric vehicles becoming more affordable?

The Model S was the most affordable Tesla, one of the few all-electric vehicles available in the United States. It cost $52,400 a decade ago. Although the Model S’s starting price has almost doubled to $89,999, the company introduced the Model 3 for $44,000. It has a longer range than its 2013 counterpart.

This example mirrors the EV market in the last couple of years. There are now more models. According to Cox Automotive (an auto data company), EV sales increased from 488 397 in 2021 and 809 739 in 2022. Technology has improved in vehicles; dozens of models have ranges exceeding 200 miles while only a handful of EVs could go more than 100 miles in 2013.

Many EVs may not be within the reach of most car buyers. However, EV prices tend to be close to the average price of average gas-powered cars. The lowest-cost EVs have specs that are now affordable, compared to what they were a few years ago.

Rebates may bring down prices

  • You must have income below the following: Not more than $150,000 for individuals and $300,000 for married couples filing jointly.

  • If the tax credit exceeds what you owe, you won’t receive a refund. A tax bill up to $7500 will be reduced to $0, if you are eligible for the maximum amount.

  • Some cars may not qualify. Factors such as price, weight and battery size determine whether an electric vehicle qualifies. An IRS index lists those cars.

EVs are available for less than $40,000

All EVs listed below have a suggested retail price (MSRP) of $40,000 or less, which is lower than the average new car’s price of $44,584 in 2022. These EVs also have longer ranges than 200 miles which allows them to take longer trips and require fewer charging stops, important for those who don’t have a gasoline-powered vehicle.

The MSRP may not be the same price as the price you see at a dealer. Prices shown are for base models. However, the model you see at a dealer may be a higher trim level, which can mean more expensive features. You may have to pay additional fees, such as delivery costs and market adjustments, which can affect your final price. MSRP does not take into consideration the savings that you could get from a federal rebate, if your vehicle is eligible. The lowest-cost options could be eligible for rebates that could reduce the cost by up to 25%.

Cars under $30,000

2023 Chevrolet Bolt

MSRP: $26,500

Range: 259 Miles

2023 Nissan Leaf

MSRP: $28,040

Range: 212 Miles

SUVs under $40,000

2023 HyundaiKona

MSRP: $33,550

Range: 258 Miles

Volkswagen ID.4

MSRP: $38,995

Range: 295 miles

2023 Kia Niro

MSRP: $39,550

Range: 253 Miles