Average New EV Price Falls to $58,071 After Tax Credit Ends

New electric vehicles got cheaper after the federal $7,500 tax credit for new EVs went away. Listing data from Cars.com shows the average price of a new EV fell 12.3% to $58,071 six months after the credit ended, GCN reported.

The credit expired on Sept. 30, 2025. Many shoppers expected EVs to cost more without it. Instead, automakers holding large EV inventories cut prices or added incentives to keep cars moving off dealer lots.

How the average EV price fell month by month

According to Cars.com’s analysis of its national marketplace, prices dropped 4.4% from October to November 2025, to an average of just over $63,000. By the end of the year they had slipped another 2.6%, to an average of $61,551. Six months after the credit ended, the average had reached $58,071.

Cars.com also found that EVs in its inventory sat on lots 36.4% longer, reaching 115.6 days in March 2026 compared with October. Cars that sit longer usually push dealers toward discounts.

Hyundai cut stickers, GM leaned on incentives

Automakers took different routes. Hyundai lowered the sticker price itself on its 2026 Ioniq 5 lineup, by an average of more than $9,000, with some trims down nearly $10,000, according to industry reporting on the company’s announcement. Those cuts are larger than the $7,500 credit buyers used to get.

GM and other automakers have reportedly looked at dealer and financing incentive programs for the Chevrolet Equinox EV instead of changing its window sticker. The effect for buyers is a lower transaction price even when the label looks the same. Cars.com inventory data lists the Equinox EV at around $26,550, a steep drop from its price at the start of the year. GM once called the Equinox EV the best-selling EV in America not built by Tesla.

The larger Hyundai Ioniq 9 has dropped nearly 6% in price since October, Cars.com data shows.

Tesla moved in the other direction

Tesla raised lease prices across its lineup after the credit expired. Monthly lease payments for the Model Y SUV went up by as much as $70, and payments for the Model 3 sedan rose by as much as $80.

Luxury brands with smaller sales volumes have had more room to keep prices steady, since their buyers are less sensitive to a $7,500 swing on a six-figure car. Audi and Porsche have still faced pricing pressure from tariffs and softer demand, GCN reported.

What it means for EV shoppers and automakers

The biggest cuts are on lower-priced, mass-market models such as the Equinox EV and Ioniq 5, which depend more on incentives to sell. Several automakers reported softer EV sales in the months right after the credit ended, with declines concentrated in those mass-market lineups, including Chevrolet’s.

Much of the cost of losing the credit has landed on automakers rather than buyers, as companies chose discounts over the risk of losing customers to gas-powered cars. Analysts cited by GCN say the current discounts reflect inventory clearing and should not be read as a permanent new price level. Deals vary widely by brand and by how much unsold stock a given dealer has.

Used EV prices eased more slowly

The used market moved less. Used-EV prices fell for three months after peaking at $38,277 in June, reaching $36,770 in September. That is still well below the average new EV listing.

What to watch next

Whether new EV prices stay this low depends on how fast dealers work through current inventory and whether cooling demand leads to another round of price changes once the clearance ends.

Source: GCN