It has become a common misconception that Tesla’s fixed online pricing strategy is the norm for other electric cars. Many have the impression that electric vehicles (EVs) have done away with infamous dealer negotiation tactics. However, while a few buyers are willing to splash out for the status of being the first EV owner in their social circle, most prefer to avoid paying above sticker price. The good news is, for those looking for a bargain, discounted electric cars are becoming increasingly accessible.
More Affordable Electric Cars Emerging
CNN recently noted an increase in electric car price cuts. This shift seems to be a response to increased inventory following the supply chain problems of the Covid-19 pandemic. Joseph Yoon from Edmunds explains that automakers are broadening their target audience beyond early adopters, and these more typical buyers are keen to secure a good deal.
Interest in Hybrid Cars Outpacing Electric Cars
Interestingly, the CoPilot car shopping app’s CEO, Pat Ryan, shared that hybrid models, like those popularized by Toyota, are currently attracting more consumer interest than electric cars. They’re selling above sticker price and rapidly leaving dealership lots. The adoption curve for hybrids is far ahead than that of electric cars, according to Ryan.
Changing Trends in Electric Car Pricing
In September 2022, EVs sold in the US (excluding Teslas) went for about $1,500 over the sticker price. However, a year later, most were sold for about $2,000 less than the sticker price. Tesla has also been aggressive in reducing electric car prices. By 2023, the base price for Tesla Model 3 has dropped by 17% from its price at the beginning of the year. This put pressure on other manufacturers and dealers to adjust their prices in line with this trend.
Top Electric Cars Now Selling Below MSRP
Though Tesla’s no haggle policy stands firm, plenty of popular electric car models currently sell for hundreds, or even thousands, less than their MSRP. These price reductions, along with dealership incentives, are moves by manufacturers to boost demand. Business Inside has compiled a list of 20 electric vehicles now selling below MSRP, arranged in alphabetical order, not including Tesla, Rivian, and Lucid EVs as their sales data are not publicly disclosed.
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
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
Tesla: An Outlier in Electric Car Pricing
Amid these discount trends, Tesla is an exception. Their prices are fixed – the amount displayed on the website is what you’d pay. So while you wouldn’t need to haggle, the price you pay could be significantly more than what others might pay in a few weeks or months. Moreover, Tesla’s price reductions might quirkily result in diminished trade-in value for current owners – a phenomenon that has led to considerable debate among Tesla enthusiasts.
Conclusion
Purchasing a car as an investment might not be the best decision, especially when electric vehicle prices are fluctuating significantly. If you prefer to negotiate, now might be the perfect time to snatch up a deal on an electric car. However, if you prefer a haggle-free experience, you might opt for buying online, bearing in mind the unpredictability of companies like Tesla. Both options have their pros and cons – the decision is ultimately yours to make.
