Recent studies have shown that those who are in the market for a new car, even those interested in electric vehicles, aren’t planning on spending more than $25,000.
There are plenty of fuel efficient cars in this range, such as the Mini Cooper and the Toyota Prius, but you might be hard-pressed to find an electric vehicle under $25,000. According to one report, 71% of new car customers surveyed were planning on spending less than $25,000 on their next vehicle, and 43% less than $20,000. Considering that 61% of new car buyers are favorable toward electric vehicles, it’s a shame there aren’t more electric vehicles in this range.
The Chevy Spark EV and Nissan Leaf are currently available for less than $25,000, but only after federal and state incentives. Other electric vehicles, such as the Chevy Volt extended-range electric vehicle and Fiat 500e, are just shy of this mark, while others, such as the Tesla Model S, don’t even come close. Lithium-ion battery pricing is expected to drop in the future, which might reduce electric vehicle costs by up to 30% but, at the same time, federal and state incentives, as well as free parking and highway HOV lane access, are expected to disappear.
Incentives have done a lot to get the word out about electric vehicles, making them affordable, but will the future drop in incentives cancel out the drop in battery pricing? Electric vehicle makers will have to work harder on educating their clientele, not only in fuel savings, but in environmental awareness and the impact their vehicle purchase will have, if they want to attract these buyers who only plan on paying just so much.
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