CarEdge Insights
For the past few years, electric vehicles have sold for about $10,000 more than combustion-powered counterparts on average. That’s not good for the consumer, and it’s not helping EV adoption. However, the market is changing. In 2024, you CAN negotiate electric car prices, at least for some of the most popular models. Here’s where the market stands, and how to negotiate a better price when you head to the dealership to buy your next EV.
The EV Market in 2024 – Prices, Inventory and Demand
The EV supply shortage is well behind us, and the legacy automakers are busy playing catch-up. It’s not all about Tesla anymore. Mainstream automakers like GM, Ford, Toyota and Honda are introducing their own budget-minded EVs in 2024 and 2025. On top of that, EV tax credits were revamped to remove the previous sales cap, and introducing new limitations.
Demand for electric vehicles remains high, and more than two-thirds of American drivers are at least somewhat interested in owning an EV in the future. What’s changing is the supply of new and used EVs on the market.
Little by little, electric vehicles are becoming a mainstay on dealer lots. Five years ago, Tesla, Chevrolet and Nissan were the few known for their electric offerings. Today, every automaker has jumped on the electric bandwagon.
Electric car prices remain higher than the overall industry average. The average new EV sold for $56,648 in 2024. That’s over $8,000 more than the overall average new car price of $48,401. This is an improvement over where EV prices were about two years ago when the average transaction price was about $64,000.
So yes, electric cars, SUVs and trucks remain expensive overall. However, for the determined and knowledgeable buyer, savings can be had when negotiating EV prices. Let’s dig into the details.
Can you negotiate Tesla prices?
Are you shopping new or used? You can’t negotiate prices for a new Tesla Model Y or any other new Tesla. That’s because Tesla sells direct-to-consumer (learn more about the trend toward DTC sales here). The price you see on tesla.com is the price you pay.
Buying a used Tesla is an entirely different story.
Tesla commands about half of the EV market in America. So when Tesla discounts new models, the effects will spread throughout the new AND used EV markets soon after. In 2023 and 2024, Tesla discounted prices for the Model 3 and Model Y heavily. Why did Tesla drop prices? The answer is simple: to spur interest in its vehicles.
The result is much more affordable NEW Tesla models, and a glut of used Tesla cars on the market. Fewer buyers are opting to buy used at a time when brand-new Tesla models are heavily discounted. Consequently, the market for used Tesla EVs has crashed. You can most definitely negotiate a better deal on a used Tesla today.
Long gone are the days of used Teslas selling for more than new ones.
Caution! Here’s what you NEED to know when buying a used Tesla
Before heading to the dealership to negotiate a used Tesla, prepare for the messy market in 2024. Here’s what you need to keep in mind when pursuing a deal on a used Tesla:
- The dealer may be stuck in time. Don’t expect your salesperson to know that Tesla dropped Model Y prices by up to 13% and Model 3 prices by several thousand dollars. There’s also a real chance that they could be pretending to be unaware of the recent price drops. Dealers WILL try to sell their used Tesla inventory for more than the cars are worth, because there’s a good chance that they’re losing money on them.
- Don’t expect the dealer to be a tax credit expert. The used EV tax credit is ONLY for vehicles under $25,000. In other words, few used Teslas will qualify in 2024. But they are out there. Do your homework before negotiating a deal. Here’s the latest from the IRS on exactly how the new EV tax credit works.
Yes, you CAN negotiate electric car prices.
Several factors make all EVs more negotiable in 2024, not just used Teslas:
- Supply is up: EVs remain popular, but you’ll no longer be fighting tooth and nail for the sparse electric vehicle inventory. From the budget-minded Nissan LEAF to the Hyundai IONIQ 5, most mainstream electric vehicles have more inventory now than ever before.
- Markups are ALWAYS negotiable: With inventory up and the EV market growing, don’t let anyone try to convince you that markups are acceptable. Our community has shown time and time again that EV markups can and should be removed.
- The Tesla effect: When Tesla slashed prices by up to $13,000, competitors took note. The Ford Mustang Mach-E was discounted shortly after, and budget-friendly EVs like the Volkswagen ID.4 are holding prices where they are, after prior speculation that price hikes were on the way.
- There’s always something better: Electric cars are going through an extended period of rapid innovation. 2015’s latest and greatest EVs are mediocre today, and 2024’s most capable electric models will lose their sparkle when longer-range and faster-charging EVs arrive. Use this to your advantage. When negotiating an older model year EV, use this to your advantage.
- Tax credit winners and losers: If the EV you’re shopping for doesn’t qualify for the revised federal tax credit, use that as leverage to negotiate a lower price. In 2024, this includes the popular Hyundai IONIQ 5, Kia EV6, Nissan Ariya, as well as others. Made-in-America EVs under the new price caps ($55,000 for sedans, $80,000 for trucks and SUVs) do qualify for the new EV tax credit. However, battery sourcing requirements complicate matters further. See the latest update from the IRS for the official guidance.
Check out these success stories!
After what we’ve all been through a few years ago, it’s fair to be weary of good news. But deals on EVs are attainable. Zero percent financing abounds! Here are three recent EV success stories from the CarEdge community.
“Thanks to the guidance from CarEdge, I was able to get a 23′ Ioniq 5. I negotiated all of the dealer extras off of the out-the-door price and $4,000 off of the market adjustment. Could’ve gotten the SEL trim for under MSRP, but had my heart set on the Limited.
Really happy with CarEdge, it made all the difference. Hated to pay any market adjustment but the Limited trims are in pretty high demand with limited inventory so I felt good about it. Thanks crew!!”
– Eric, 2023 Hyundai IONIQ 5 Limited
“I purchased a new Kia EV6 from Sterling Kia in Lafayette, LA. I emailed the dealer the evening of 10/21 after hours inquiring if they had a Wind RWD available. Matthew called me the next morning stating the car was available. Before the end of the day, I purchased the EV6 at MSRP with no dealer add ons.”
– Howard, 2023 Kia EV6
“I called a dealer about a Chevy Bolt 2LT, that according to CarEdge’s VIN tracker has been on the lot for 3 weeks 🤯. Salesperson said no markup, $2500 in add-ons, but they said it was negotiable.
I came in and negotiated off all the options except for permaplate. They even gave me the California Clean Fuel rebate, which I wasn’t expecting since California said they paused that rebate.
I learned so much from the CarEdge Community. I came with a check-ready loan. They beat my APR by .1% 👍. I told them I would rather custom order without accessories, they said they would but I would have to wait. When I said I would wait, the manager took off that last option.”
– Stefan, 2022 Chevrolet Bolt
There are many more examples of great car price negotiation wins over at the CarEdge Community. Today, it’s totally possible to negotiate the price of a new or used EV, especially if you’re willing to learn negotiation tactics that are proven to be effective.
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The story about having bargaining ability when buying a new EV may be true now in some places but not in Arizona, at least when it comes to Ionic 5’s. Hyundai’s allocation to dealers in AZ have been minuscule since it came out in 22. I’ve been on a list for over a year and just found out the car I wanted (SEL,RWD,White or Blue) is finally on its way. This is dealing with the largest Hyundai dealer in AZ and they still have no say in what Hyundai ships them and the cars just dribble in a few at a time. So this dealer has been good, selling at MSRP and “only” $900″ in add-on. They happen to be things I don’t object to: glass tinting (a must in AZ!), nicer floor mats, door guards. And I think $400 in doc.fee. If I objected to the add-ons or doc.fee the car would be sold to someone else by the end of the day. And that’s not the salesman BS’ing. I don’t know of any other dealers not adding thousands to the MSRP although I haven’t checked recently. So I’m still feeling pretty good about this deal in the current conditions here. There is plenty of demand here without the tax credits and I don’t want to wait 3-4 yrs before they are producing Ionics in the US.