Electric vehicle adoption is being encouraged worldwide with the rise of tax credits, subsidies, and incentives, plus the growth of EV infrastructure. More and more people hope to shift to an EV. However, with soaring prices, affordability becomes a challenge.
Based on newly updated Kelley Blue Book (KBB) data, electric car prices increased even further last month. In general, if the price of new cars were not already high, it is growing more rapidly than what may have been anticipated.
Notably, the average new car sold in November cost $48,681. The price was $422 higher than in October and $2,250 higher than a year ago. According to KBB calculations, the average buyer has paid more than the manufacturer’s suggested retail price (MSRP) monthly since July 2021.
Prices are showing no signs of coming down as we head into the holiday season.
Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive
It is crucial to emphasize that most new cars are more expensive than they used to be. The average transaction price for new cars tends to rise steadily. We are currently in the middle of the global COVID-19 pandemic aftermath, which caused financial turmoil and inflation.
A quick internet search would show that the average cost of a new car in the US comes in at nearly $50,000, with the average price for a luxury car at around $65,000.
Electric vehicle prices increase from October to November 2022
Based on KBB’s recent data, EV prices increased an average of 2% from October-November 2022. However, those transaction prices are up 9% year over year.
According to Top Car News, as they EV lease and financing deals article monthly, the website has discovered that down payments, monthly lease payments, and interest rates increase every month. It looks like automakers are not stopping or hitting a break but, instead, continuously raising prices.
At any rate, KBB stated the average EV transaction price last month was $65,041, which is nearly equal to the average luxury car transaction price.
Average vehicle transaction price across the market
Still, in contrast to the rise in overall car costs, electric vehicles are ahead.
The market’s average vehicle transaction price was up 0.9% in November 2022 compared to the previous month. On a year-over-year basis, prices across the market are up 4.4%, so EV prices have significantly grown by double.
