With the buzz about the new Federal Clean Vehicle Credit requirements making even hesitant potential electric vehicle buyers take a second look, this year’s market for EVs surging forward. But what kind of price can you expect for a new EV these days? What is the average price for new electric vehicles on the US market, and what can we expect for EV prices in the future?
Let’s take a dive into what it costs to buy a new EV in 2023:
Average Price for New EVs in the US
Before we get to an average price for electric vehicles in the US, let’s talk about the outer edges of the price spectrum for new EVs:
At the bottom end of the spectrum, the 2023 Chevrolet Bolt EV is the cheapest electric car in the US with a starting MSRP of $27,495. The Bolt also currently qualifies for the Clean Vehicle Credit, potentially dropping its effective price down by another $7,500. Coming in second for cheapest EV is the Nissan Leaf, which has an MSRP of $28,040.
The most expensive EV in the US right now is the 2023 Rolls-Royce Spectre, with an asking price of a whopping $460,000 for its Phantom trim (and yes, a few hundred people have actually gotten their deposits in to purchase one). Of course, you’ll be hard-pressed to find a tax break to bring the price down on this luxury 2-door coupe.
While no reasonable, mainstream EV even approaches the price point of the Spectre, electric vehicle prices do tend to average about 33% higher than the average non-electric vehicle. This is a drop of about 9% over the past two years though, but it hasn’t made as much of a dent in the actual purchasing cost of an electric vehicle as we would hope. The reality of the situation is that all vehicle prices have gone up over the past few years.
Now let’s take a closer look at the average prices of new EVs by comparing the top ten best-selling EVs in the US:
Average Price of the Top Ten Best-Selling EVs
You’ll get a few different answers for the top 10 list of electric cars in the US for 2023; some focus on the price, units sold, how quickly they sold, number of reservations, perceived popularity, etc. The following list contains the Top Ten best-selling electric vehicles that we’ve ranked by the total number of sales made in 2022 (with pricing current as of 9/29/2023):
Make & Model
US Units Sold
|1||Tesla Model Y||$47,740 – $54,490||251,974|
|2||Tesla Model 3||$40,240 – $53,240||211,618|
|3||Ford Mustang Mach-E||$42,995 – $59,995||39,458|
|4||Chevrolet Bolt EV/EUV||$27,495 – $33,790||38,120|
|5||Tesla Model S||$74,990 – $89,990||32,675|
|6||Tesla Model X||$79,990 – $89,990||26,121|
|7||Hyundai IONIQ 5||$45,500 – $52,600||22,982|
|8||VW ID.4||$38,995 – $55,245||20,511|
|9||Kia EV6||$48,700 – $61,600||20,498|
|10||Rivian R1T||$73,000 – $94,000||17,426|
The average price of the top ten electric vehicles in the US is about $58,229, with an average of $51,964.5 for the low end trim of each model and $64,494 for the high end trim of each model. For these ten EVs, prices range from $27,495 at the low end (the Chevrolet Bolt EV) and go all the way up to $94,000 for the most expensive trim of the Rivian R1T.
Obviously, these ten models aren’t the only EVs being sold in the US. So, what is the average price for electric vehicles across the entire US market? Currently, most estimates put the average price of a new EV somewhere around $53,470, which much lower than the average price in the spring and summer of last year (2022). For comparison, the average price in 2023 of a new car of any kind in the US is around $48,000.
However, this EV average price doesn’t differentiate between cars, SUVs, and trucks, so we’d like to break it down a little further:
The average price of electric cars (sedans, small hatchbacks, sport models, etc.) in the US is closer to $76,000. This includes cars like the Tesla Model 3, Lucid Air, Chevrolet Bolt EV, and the Nissan Leaf. While the price seems high, the luxury sedans and luxury sports cars outnumber the economy cars in this category, increasing the average price quite a bit. Still, we’d like to point out that the electric car category also includes the cheapest EV available, the Chevrolet Bolt EV (followed closely by the Nissan Leaf).
Note: we left the Lucid Air Sapphire and the Rolls-Royce Spectre entirely out of these calculations, because the unusual quarter and half million price points on these limited, super luxury EVs would increase the average significantly.
For all-electric SUVs, the average price comes to about $60,000. Surprisingly, many electric SUVs are quickly entering the market at or even below the average price of electric vehicles of any category. While the least expensive electric SUV, the Chevrolet Bolt EUV, actually comes in at less than $30,000, most electric SUVs on the market cost between $45,000-$55,000.
The average price of an electric truck is around $72,000, though only Ford, Rivian, and GMC have an electric pickup truck on the market at the time of writing. While this isn’t a very wide range of prices to pull an average from, we do expect to see several new electric trucks added this year by multiple manufacturers, including Tesla with the Cybertruck. Hopefully, some of these new EV truck options will bring the average price down.
Average Price for Used EVs in the US
In early 2023, the average price for used EVs is about $40,700.
A small but growing percentage of EVs can be found at prices below $25,000. The cheapest used EVs tend to be either a Nissan Leaf or Chevrolet Spark, though an older Tesla Model S can show up in the $25,000-$30,000 price range.
Let’s take another look at our top ten list of best-selling EVs, this time with their current average used price:
Make & Model
Used Price Range
|1||Tesla Model Y||$40,000 – $69,000|
|2||Tesla Model 3||$30,000 – $67,000|
|3||Ford Mustang Mach-E||$50,000 – $68,000|
|4||Chevrolet Bolt EV/EUV||$17,500 – $35,000|
|5||Tesla Model S||$30,000 – $135,000|
|6||Tesla Model X||$48,000 – $135,000|
|7||Hyundai IONIQ 5||$27,000 – $50,000|
|8||VW ID.4||$32,000 – $50,000|
|9||Kia EV6||$42,500 – $62,000|
|10||Rivian R1T||$85,000 – $95,000|
For the top ten best-selling EVs, used prices average around $58,500. The average price of the least expensive used EVs of each model reduces to about $40,400. For the highest asking prices, that average goes up to $76,600.
Over half of the electric cars on our list can be found for less than the average price of a new car in the US. With the exception of the Rivian R1T and Mustang Mach-E, many trims of the top ten best sellers are listed with used prices below $48,000 (though it’s important to note that any Tesla Model S in that price bracket will be an older model).
The price of used electric cars in the US is still relatively high, though there are some indicators that this trend may change in the near future. In the next two sections, we’ll look at why these prices have remained high despite the length of time EVs have been on the market and why those prices are starting to drop.
Why Are EVs Still So Expensive?
We’ve been listening to EV manufacturers talk about how increased production will lower electric car costs for over a decade now, so why are the prices still so high? Despite Tesla’s impressive 1.37 million EV units produced last year and the ever-increasing EV production from assembly-line veterans Ford and Chevrolet, the average price of an electric car has only increased in the last couple of years, from around $54,700 in early 2020 to today’s average electric car price of $64,000. Even if they haven’t decreased, why haven’t prices at least leveled out?
Update 9/29/2023: Thanks to some serious changes in manufacturer pricing in Q3 of 2023, the average cost of a new EV is $53,470, which is below the cost in 2020! However, the discussion below is still highly relevant for many new EV costs.
The price of battery packs should have been the key to the reduction in EV prices, and before 2020, it looked like we might reach the ideal battery price of less than $100 per kilowatt hour (kWh). However, today’s battery prices have unfortunately jumped to around $152 per kWh.
We’re sure our readers are more than aware that the last several years have caused a series of unfortunate manufacturing events. The disrupted supply chain and shipping nightmares, factory shutdowns, material scarcity, and increased competition for components, has left the entire car industry (not just EV manufacturers) scrambling. Most have resorted to counteracting the rising cost of materials with a rising cost to consumers.
At the same time as the supply shortage appeared, gas prices increased dramatically and demand for EVs skyrocketed. When demand outpaces supply, prices generally don’t go down. The rising demand of EVs had another effect, too: some dealerships saw an opportunity to raise the cost of electric cars on their lots well above MSRP. These overpriced EVs were in such high demand that they still sold quickly despite the sticker shock.
Even on the private market, used EV prices have remained at or near MSRP thanks to long lead times for production of new vehicles and scarcity of affordable EVs. However, prices are fluctuating due to Tesla’s recent price drops.
We’ve been in a sellers market for EVs since approximately 2020, but the cost of an electric car in 2023 may trend in the opposite direction. In fact, it already has due to Tesla’s price drop, market saturation (especially for Tesla Model 3/Y), and other various factors. Let’s talk about why EV car prices are on their way down:
When Will Electric Vehicle Costs Go Down?
Update 9/29/2023: Thanks to some serious changes in manufacturer pricing in Q3 of 2023, the average cost of a new EV is $53,470, which is below the average EV cost in 2020, and used EV costs are dropping in response. Will this situation hold up in 2024 when some of the Federal Tax Credits no longer apply? We’ll have to wait and see.
At this point in EV history, we may be seeing a new and used price tipping point.
In response to new Federal law that changed which vehicles were eligible for the Federal Clean Vehicle Credit, Tesla dramatically reduced their prices. In order to stay competitive with Tesla, other manufacturers may soon follow suit. Additionally, dealership markups that have kept some EV prices sky-high have settled down. And with the reduction in new EV prices, sellers of used electric vehicles are beginning to reduce their expectations and asking prices as well. For the first time ever, we are seeing Model 3 Long Range AWD variants with asking prices below the $30k mark.
Could new battery technology be on the horizon for EVs? Possibly; a change in battery components could bring the industry to a more stable supply situation. However, lithium is still the preferred battery type for most EVs. With this limiting factor in mind, we may see an increase in EVs with a smaller range and hopefully a smaller price tag than the current market.
As part of this potential new wave of smaller, more affordable EVs, will Tesla bring out its long-awaited Model 2 (originally called the $25,000 Tesla)? We hope so, though at this point any information about the Model 2 is still mostly a rumor.
Where Do You Find a Good Deal on an EV?
If both new and used EV prices are falling, where can you go to find a good deal on an electric vehicle?
EVs made by Tesla and Chevrolet are in the running for budget options eligible for the Federal EV credit. That potential extra $3,750-$7,500 tax break helps bring the average cost of a new EV down quite a bit.
But there’s still another way to get the best deal on an electric car right now. We mentioned it before, but 2023 looks like the start of a buyer’s market for used EVs!
We’ve made it easy to compare pre-owned EVs from most manufacturers of electric cars, SUVs, and trucks right here in our listings section.
You can search and sort by whatever metric means the most to you, whether that’s price, range, body style, color, or even AP hardware (Tesla fans, we’ve got you covered). The best part? Not having to share that listing space with ICE cars or frustrating ads.
Don’t wait for the best EV deals to pass you by; be sure to check out our EV listings today!