LOL: The $25,000 EV Isn't Going To Happen

If you’re holding out for that mythical $25,000 electric vehicle, you might as well be waiting for politicians to stop lying.

Elon Musk dangled the carrot back in 2018, promising a Tesla for the everyman, but here we are six years later, with many promises from other automakers, and that affordable EV is still basically a pipe dream. The electric car market is basically a playground of geeks, true believers, and the wealthy. Automakers are now grappling with a cold, hard reality that the average consumer just wants practical, affordable vehicles instead of widgetized rolling iPhones that capture your data and catch on fire in equal parts.

Tesla’s Model 3 starts at $33,990, which has helped drag other automakers to drop their prices. Regardless, in July, the average transaction price for an electric vehicle was still $56,520. To be fair, the average price of all new cars has recently been pushed past $50,000, and with cars like the Nissan Versa and Mitsubishi Mirage being retired, the sub-$30,000 any kind of car is an endangered species.

Chevrolet says it will offer a base model Equinox EV that will scratch under $30k—once you factor in the federal tax credits, of course. And Jeep has been teasing us with talk of a $25,000 electric Renegade, though Stellantis is a disaster and I wouldn't believe anything they have to say right now.

Meanwhile, the industry is doing a bit of a dance. Leasing is the name of the game now, with almost 70% of new EVs owned by banks and financial institutions. Smaller down payments, easier monthly paymentscall designed to make the sticker price hurt a little less.

Some people will tell you the way to get an affordable EV is to hit the used lots–and you could, just like you could set a pile of money on fire in your backyard–but why would you? The average age of a used EV is just under three years, so you could probably find an EV for $25,000, but you're most certainly not going to own that vehicle until it's 10 or 13 years old, which is the average age of a vehicle on the road.

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