Electric vehicles (EVs) are traditionally more expensive than their gasoline-powered counterparts, but the price difference is steadily decreasing.
According to the latest figures from Kelley Blue Book, the average transaction price for electric cars in January was $55,614, a 1.4% decrease compared to the previous year. Conversely, gas-powered vehicles averaged $48,641, representing a 1.3% increase year-over-year. Tesla, a leader in the EV market, saw an average transaction price of $55,380, a 4.5% increase from the year before.
EV price points vary widely, with entry-level models like the 2025 Nissan Leaf starting at $29,280 (including destination charges). High-end luxury EVs, such as the 2025 Mercedes-Benz EQS SUV, can cost upwards of $100,000. The EQS SUV, for example, starts at $106,300 including destination charges.
January saw a significant increase in new EV sales, reaching 102,243 units, nearly a 30% jump year-over-year. This marks the 10th consecutive month with sales exceeding 100,000 units.
Used EVs also saw price adjustments. The average listing price for a used EV decreased approximately 5% to $37,476 in January compared to the prior year. Notably, about 39% of used EVs sold during this period were priced under $25,000.
Federal incentives further support the price competitiveness of EVs. Qualified buyers of new fully electric, plug-in hybrid, and fuel-cell vehicles can receive up to $7,500 in incentives. Leasing an EV can also qualify buyers for the same tax credit through dealerships. Furthermore, buyers of used electric cars may be eligible for a credit of up to $4,000 on specific models. These incentives collectively contribute to closing the price gap between EVs and gas-powered vehicles.
Beyond the initial purchase price and incentives, EVs offer additional cost savings. Unlike gasoline cars, fully electric vehicles operate on electricity, eliminating the need for gasoline as well as regular oil changes and other maintenance requirements. Electricity typically costs less than gasoline.
These factors are making electric vehicles a more attractive option for consumers.
