Average EV Transaction Price is $6,300 More Than That of Gas Cars | Carscoops

      Last month, a notable 132,392 new electric vehicles (EVs) were sold in the United States.

      In December 2024, the average transaction price (ATP) for a new EV was a significant $55,544. In contrast, the ATP for a new gasoline-powered vehicle that same month stood at $49,270. The used market reflected a comparable disparity between the prices of EVs and internal combustion engine (ICE) vehicles.

      As the automotive sector transitions towards an electric future, cost remains a significant barrier. Automakers and experts assert that electric vehicles will ultimately take over the market, regardless of any delays in the timeline. However, affordability continues to be a major issue for many consumers.

      Consumers are unlikely to switch to electric cars if their prices remain considerably higher than those of gasoline vehicles. Although a recent analysis indicates that EV prices are declining, new models continue to be priced above their ICE equivalents.

      Following an evaluation of new and used EV sales in December 2024, Cox Automotive identified that the average transaction price for new EVs was $55,544. This represents a 1.1% increase from November and a 0.8% rise compared to the previous year. Notably, new EVs are still being sold at a premium over ICE vehicles, with gas-powered cars averaging $49,270 last month, placing new EVs at an average of $6,274 more expensive.

      This trend of higher prices for EVs is also evident in the used car market. In December, the average price for all used vehicles, encompassing both ICE and EVs, was $32,712, whereas used EVs alone averaged $36,976. These statistics pertain only to vehicles five years old or newer. On a positive note, used EV prices were 8.9% lower than the previous year.

      Cox Automotive’s analysis includes an important consideration; the comparison between EVs and gas-powered cars isn't entirely equitable, as the abundance of inexpensive ICE options naturally lowers the overall average price. Evaluating the ATP of all EVs against all ICE vehicles is akin to stating that a Toyota Corolla is less expensive than the average gasoline-powered car—this is true, but only because the ICE category encompasses everything from budget hatchbacks to high-end sedans.

      This disparity complicates the assessment of whether EVs are genuinely pricier or if the market simply lacks adequate affordable choices.

      December marked a robust month for both new and used EV sales in the U.S., although some of this success may have been fueled by fears regarding the potential removal of the $7,500 federal tax credit. A total of 132,392 new EVs were sold that month, reflecting a 14% increase from the prior month and a 12.6% rise year-over-year. This elevation brings EVs to represent 8.8% of all new vehicle sales in the country.

      Cox Automotive reports the top five best-selling new EVs were the Tesla Model Y, Tesla Model 3, Honda Prologue, Ford Mustang Mach-E, and Chevrolet Equinox.

      Used EV sales also experienced a significant increase, with 28,483 units sold in December, marking a remarkable 62.6% rise compared to the same period last year. Again, Tesla led the market, with the Model 3 and Model Y being the most frequently sold used EVs, alongside the Chevrolet Bolt, Tesla Model S, and Ford Mustang Mach-E.

      In conclusion, while EVs are making progress, pricing remains a critical issue. The positive note is that prices for used EVs are decreasing and sales are rising, despite the ongoing price disparities. For electric vehicles to achieve widespread adoption, manufacturers must find ways to align their prices more closely with those of gasoline-powered models.