Average EV Price Down Over $10,000 Year Over Year: KBB

Average electric vehicle (EV) transaction price in the United States declined by more than $10,000 in the month of April this year, according to Kelley Blue Book’s (KBB’s) latest report. California-based KBB vehicle valuation & automotive research company, underlined in the report that there was a significant decline in purchase prices of EVs.

According to data published by KBB, the average transaction price for a new passenger car in the U.S. fell below MSRP for the second consecutive month in April 2023, even as the average price of a new vehicle didn’t change much. The average price of a new car fell from $48,289 in March to $48,275 in April. However, it is important to note that average price of a new car is still up by roughly $2,000 year-over-year.

In the meantime, KBB report also found that the average price of an EV slipped to around $55,000. It may seem expensive as it is undoubtedly more than the average price of a new car transaction. It marks a decline of more than $10,000 when we compare it with the figure recorded in the corresponding month of a year ago. Moreover, the average price of EV transaction recorded in April was down by $4,464 from the previous month. According to KBB, EVs were at peak pricing in the month of June last year. This year, the pricing is dropping at an impressive rate.

Rebecca Rydzewski, Research Manager of Economic & Industry Insights at Cox Automotive, described the decline in new-vehicle transaction prices as a “breath of fresh air to buyers,” who suffered last year due to low supply and rapid rise in prices.

Speaking on the topic, Rydzewski said, “New-vehicle transaction prices are trending downward in 2023, which should feel like a breath of fresh air to buyers following the last few years of low supply and rapidly rising prices. Now that inventory levels are starting to climb and manufacturers are increasing incentives, the market will respond accordingly.”

Obviously, cuts made by American EV giant Tesla Motors in the prices of its vehicles have had a huge impact on the average price of new electric cars in the U.S. Tesla continued to cut the prices of its EVs even at the beginning of 2023, with some cuts leading to price declines of up to $13,000 per unit.