Electric vehicles (EVs) are piling up on car lots across the country as the green revolution hits a speed bump, data show.
EV inventories have increased by 506% from a year ago, with EVs sitting on lots for longer, according to CarGurus’ October report, released this month. EVs sit on the market an average 82 days versus 64 days for gas-powered vehicles, it said. In response to slowing demand, automakers like Ford and GM are cutting production.
EVs are still too expensive for most people, even with government incentives, surveys say.
“While consumers still have plenty of concerns surrounding an EV’s battery range, price remains the higher priority when purchasing an EV,” said Julia Martinez, an energy & auto analyst at business intelligence company Morning Consult, in a report.
Aren’t EV prices dropping though?
Yes.
Helped by Tesla’s price cuts, the average price paid in September for a new EV fell to $50,683, from $52,212 in August and $65,295 a year earlier, with incentives representing 9.8% of the transaction price, or $4,991, according to car buying platform Cox Automotive.
Used EVs saw similar declines, with EVs 3 years old or less shedding 29.5%, car buying platform Edmunds said.
Even with those lower prices the new average EV list price was 28% higher than a gas vehicle last month, CarGurus said. That brings the cost for a 60-month loan with an interest rate of near 8% on an average new EV to $277 more a month than a gas car, it said.
