July 31, 2023

Here’s Why Experts Say Now Might Be the Time to Buy an EV

Tesla’s electric vehicles have had a record-breaking sales year in 2023, and even other automakers are starting to see buyer enthusiasm grow for their early electric releases. Last year, increasing EV sales were fueled in part by average gas prices topping $5 a gallon, though some auto experts are saying that now may be an even better time to go electric.

Above: A Nissan Lead and a Tesla Model 3 (Image: Casey Murphy / EVANNEX).

CBS News pointed to four different reasons that auto experts say now is a good time to purchase an EV, including the sheer number of cars finally making their way to dealership lots. In the past, those buying a coveted Tesla would be subject to lengthy waitlists, and the market didn’t have as many options as there are today.

Kelley Blue Book Executive Editor Brian Moody recently noted that Tesla and traditional automakers have excess inventory on EVs right now, driving wait times down. KBB data shows that auto dealerships currently have a cumulative total of 92,000 EVs on their lots, over four times as many as there were a year ago.

"We are running into the end of all the gotta-have-EV car buyers," Moody said in a statement. "Now you're going to have to convince the average person that, 'Hey, this vehicle is a great deal for you no matter how it's powered.'

"For those people, it's starting to look like the prices are headed in their direction," Moody added.

Last month, the average EV price in the U.S. was $53,438 according to KBB, which is down from $66,390 this time last year. Tesla began the year with sweeping price drops across its entire lineup, and other automakers such as Ford and Rivian have followed suit in the months since. Ford recently cut the price of its F-150 Lightning by around $6,000, following a wave ove price hikes over the last couple of years.

Executive Director of Insights at Edmunds Jessica Caldwell says automakers are shifting away from marketing EVs mainly to luxury buyers, and increased inventories may in turn boost company buying incentives.

"Prices should be better than they have been over the past year, particularly for EVs," Caldwell said. "The only thing that could upset that is more issues with production — for instance, the [United Auto Workers] talks coming in the fall. If that goes left, that could affect GM or Ford."

Caldwell also says buyers remain concerned about charging station availability and charging times, adding that companies need to focus on deploying chargers just as much as they should focus on dropping prices. The Biden administration has set a goal of reaching 500,000 EV charging stations by 2030, even offering federal funding for automakers to build their own charging networks.

Additionally, recent deals including Ford, GM, Mercedes-Benz, Volvo, Rivian and others will oversee future EVs being built with Tesla’s charging standard, giving them access to the company’s vast Supercharger network. Current Tesla buyers gain access to more than 17,000 U.S. Supercharger stalls, charging the EV with as many as 200 miles in 15 minutes, according to the company.

Federal tax incentives have brought the price of many EVs down even further, offering up to $7,500 in tax incentives for select vehicles. Some states and counties even offer increased rebates and incentives, and stacking multiple discounts and rebates together has been found to be helpful buy some EV buyers.

Here are the EVs that are eligible for the full $7,500 federal tax credit, as sorted by brand:

Cadillac