A market research company estimated in 2019 that electric vehicles would be on level in price with their internal combustion engine counterparts by 2022. After a year, It is expressed confidence in electric vehicle prices. In a keynote address given at a meeting of the Society of Automotive Analysts, the topic of electric vehicles reaching price parity with conventionally powered automobiles was discussed. In the second half of 2022, the cost of electric vehicles will have surpassed that of internal combustion engine vehicles. Recent increases in MSRP are adding even more expense to newly purchased electric vehicles, and new research shows that used EVs are far more expensive.
Prices Of Used Electric Vehicles Increased by 54.3% In a Single Year
Although the prices of used cars are falling quickly at the wholesale level, purchasers have not yet seen any substantial price cuts at the retail level. The prices of used cars have decreased by approximately 5 percent over the course of the past eight weeks. Is there a possibility that the bubble in the price of automobiles is about to burst? We’re not the best option for you if you’re looking for an electric vehicle or plug-in hybrid vehicle, but.
According to the data, the cost of a used electric vehicle saw a price increase of 54.3% between July 2021 and July 2022. During the same time period, gas-powered vehicles only had a 10.1% increase. Researchers crunched the numbers of over 13.8 million used cars that were between one and five years old and were sold between January and July of 2021 and 2022 in order to evaluate the rate of price rise of electric cars in comparison to ICE vehicles spring, as gas prices continued to set new highs, a simultaneous increase in demand for electric vehicles occurred. A closer examination of the data, however, indicates that the few affordable electric cars that are now on the market witnessed the highest price hikes, and by a significant margin.
At a time when the typical purchase price of an electric vehicle is more than $66,000, the future of electric mobility is dependent on the development of more cost-effective alternatives. It appears that less and fewer electric vehicles may be purchased for less than $40,000 every day.
Are Affordable Priced EVs Dying Out? It Seems So
It has been discovered that the costs of the two electric automobiles in the United States that are the least expensive have increased the greatest. Since 2021, prices for used Chevrolet Bolt have increased by 29.3%, and prices for used Nissan Leaf’s have increased by 45%. This enormous increase in price will result in an average selling price of $28,787 for the Nissan Leaf in July 2022. The base price of a new Leaf is currently $27,800. In the past month, a used Chevrolet Bolt sold for a price of $28,291 on average. That is a significant amount of money for a used electric vehicle, especially when taking into account the charging capabilities of the Bolt.
Both of these electric models are likely to experience significant depreciation as the availability of EVs with significantly faster charging becomes more widespread. DC fast charging times typically range from 45 minutes to one hour, and adding 200 miles of range takes approximately that amount of time. This is especially true for the Leaf, which is significantly inferior to the Bolt in terms of its range.
For some reason, the Kia Niro EV stands out from the crowd. Used Niro EV prices have ‘only’ increased 15.7% year on year; this may seem like a steal considering the vehicle’s 239-mile EPA-rated range and 77-kilowatt DC fast-charging capacity. Used Kia Niro EVs can be purchased for $35,000 to $43,000 at this time.
Another Day, Another Increase in EV Prices
The cost of brand-new electric cars is also increasing. Ford just revealed a significant price increase for the 2023 Mustang Mach-E. There was a $3,200 price increase to the base Select trim, which now begins at $48,195. Due to the removal of rear-wheel drive, the entry-level Mustang Mach-E was discontinued. The base price for the most popular Mustang variant, the Premium AWD Mach-E, has increased to $56,175 (not including the mandatory $1,300 destination charge). That’s a rise of $6,075 from the beginning of 2022.
Ford increased the price of the F-150 Lightning by $6,500 to $8,500 when it reopened orders for the truck in August. The lowest-priced F-150 Lightning now begins at $46,974. Buyers can now choose the popular XLT trim starting at $80,974.
Over 20% of the price of a Tesla has been added since early 2021. The base price of the Model Y, the most popular EV in the United States, has increased by 30% to $65,990, while the base price of the Model 3 has increased by 27%. The cancellation of Rivian’s most affordable R1T electric vehicle variant made headlines. The rising cost of electric vehicles is obvious to anyone who can do a calculator.
Frequently asked questions
Which is better, EV or ICE?
The average internal combustion engine only uses 40% of the fuel it consumes, with 60% being lost through heat and friction. As a result, when traveling the same distance as an EV, ICEs use far more energy.
Why are electric car sales increasing?
The increase in EV sales is directly related to customers learning about them and their advantages, as well as to more manufacturers selling EVs, giving them a wider range of options.
Are electric cars faster than ICE?
Compared to ICEs, EVs can generate a lot more torque at slower speeds. This is why EVs often outperform ICEs in terms of acceleration. However, because gears are utilized to maximize power production, there are some circumstances in which ICE engines may perform better under acceleration.
