EVs Hit Avg Transaction Price Of $66K In US, Gas Car Prices Also Rise

While Tesla's prices are up, the increase is below the average for all cars and for EVs, and Tesla's increase undercuts rivals'.

By: Steven Loveday

Jul 26, 2022 at 11:15am ET

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It's arguably becoming common knowledge that electric cars have higher starting prices than similar gas cars, and it's one of the reasons many people who may want to own an EV haven't yet moved forward. Now, we see stories online that the average price of an EV in the US has risen to $66,000, which may cause people to reconsider buying an electric car.

With that said, the $66,000 average EV transaction price in the US as reported by Kelley Blue Book (KBB) is an increase of over 13 percent compared to a year ago. However, keep in mind that inflation is pushing up the price of just about everything in our lives, and virtually all car prices are up compared to previous years.

The average new car transaction price goes up most months, and that's been especially true amid the aftermath of the COVID-19 pandemic and other global turmoil. According to KBB, the average new car transaction price in the US (for all cars) rose to $48,043 in June 2022, which is a 12.7 percent rise year over year.

As you can see, while EV average transaction prices are up significantly, they're following the same increase we're seeing in the automotive market as a whole. This doesn't make it any easier for people to afford a new electric car – or any car for that matter – but it does suggest that whether you buy an EV or a gas car, you're likely to pay much more today than in the past.

With gas prices out of control, buying a gas car probably isn't the best idea right now. You'll be paying much more for the car, as well as much more for the fuel. Coming up with the extra $18,000 for the EV will most likely be a major challenge for many folks, but it could be well worth it over the long term.

Electric cars offer substantial savings over gas cars, especially if you do most of your charging at home. EVs also require less maintenance than their gas-powered cousins, so there are savings to consider on top of the price of "fuel."

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Electrek points out that, based on KBB's findings, Tesla's average transaction prices are up 11.8 percent year over year, which is a big increase. However, it's below the industry average of 12.7 percent, below the EV average of 13 percent, and on par with luxury rival BMW.

Meanwhile, Daimler and Volkswagen's average transaction prices are up over 15 percent, and Honda, Geely, and Hyundai are approaching 14 percent.

Source: Electrek