Ben Glickman of The Wall Street Journal reports that discounts abound as automakers and dealers try to entice hesitant car shoppers to make the switch to electric vehicles. He writes:
Electric vehicles were a splurge purchase not long ago. Now they are among the biggest bargains on the dealership lot.
Many electric models have never been cheaper, as automakers splurge on financing deals and cash incentives to sway consumers who might be hesitant to give up their gas guzzlers. The steeper discounts will serve as a test of Americans’ appetite for going electric after months of slowing demand.
Four of the five vehicle models with the biggest drop in list price over the first half of this year were electric, including the Chevrolet Blazer and Volkswagen ID.4 SUVs, according to shopping site CarGurus. […]
Selling at a loss
For now though, most manufacturers are selling EVs at a loss, and deeper discounts are leading to more red ink.In the first half of the year, the amount of money buyers paid for Ford’s already-unprofitable EVs declined, finance chief John Lawler said at an investor conference in June. The carmaker is cutting costs to offset the price pressure, which is expected to continue in the second half of 2024, he said. […]
Used-car shoppers considering an electric must gauge what will happen with EV valuations in coming years, CarGurus analyst Kevin Roberts said. That math can be difficult given potentially rapid changes in battery technology in newer EVs, which could hurt used values.
“We’re in unknown territory at this point,” he said.
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