2024’s EV Gold Rush: Unprecedented Deals As The Year Comes To A Close
Historic Discounts, Expanding Incentives, And Looming Policy Changes Create A Surge In End-Of-Year EV Deals
The electric vehicle (EV) market is reaching a critical juncture as 2024 draws to a close. Anticipating potential changes to federal incentives, consumers are strategically positioning themselves to capitalize on unprecedented pricing and discount opportunities.
The Incentive Landscape
According to Cox Automotive, current EV incentives are exceptionally attractive, reaching over 12% of a vehicle’s average transaction price – significantly higher than the typical 7% industry standard. Automakers are offering unprecedented discounts that can slash prices by $10,000 to $20,000 on select models.
Cox Automotive’s senior economist, Charlie Chesbrough, predicts a robust conclusion to the year for EV sales. The primary catalyst is a combination of substantial discounts and speculation about potential changes to federal tax credits under the incoming administration.
Some of the most compelling lease offers include the 2024 Nissan LEAF, available for lease starting at $109 per month with a 36-month term and $2,529 due at signing, resulting in an effective monthly rate of $179, including upfront fees. Another compelling offer is the 2024 Kia Niro EV with a lease option starting at $169 monthly for a 24-month term, with $3,999 due at signing and an effective monthly rate of $336, including fees.
Similarly, the 2024 Hyundai IONIQ 5 can be leased for $199 per month for a 24-month term, also requiring $3,999 due at signing and carrying an effective monthly rate of $366, inclusive of upfront costs.
A Milestone in EV Adoption
October 2024 marked a significant milestone, with 106,155 EVs sold, pushing the total annual sales past 1 million units. This represents a transformative moment for EV market penetration in the United States (U.S.).
New market entrants are driving EV accessibility to new heights. The Chevrolet Equinox EV is now available for purchase at a competitive price of $26,100 after applying federal tax credits. Meanwhile, Honda has broadened the availability of its Prologue electric SUV lease to 17 additional states, offering it at an enticing monthly rate of just $229.
Economic Context
The broader automotive market is showing strong signs of recovery. New vehicle inventory has rebounded to 3 million units – an increase of over 677,000 units compared to the previous year. Sales incentives have climbed to 7.7% of the average transaction price, the highest level since April 2021.
The potential elimination of the $7,500 federal EV tax credit has created a sense of urgency among buyers. Consumers are racing to lock in current incentives before potential policy changes could dramatically alter the pricing landscape.
Chesbrough notes, “With less uncertainty in the market, consumer confidence is moving higher, which will likely increase willingness to buy new vehicles.”
Key Takeaway for EV Shoppers
The next two months represent a critical window for potential EV buyers. With unprecedented discounts, expanding model options, and uncertainty about future incentives, the EV market is at a fascinating inflection point.
Consumers are advised to carefully evaluate their options and act decisively if they’re considering an EV purchase. As a result, the combination of lower prices, attractive financing, and potential policy changes creates a unique buying environment that may not be replicated in the near future.
Want to learn more about EV? Thinking of buying an EV? Head over to EV.com and discover more.
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