Some EVs, hybrids selling below sticker price: Report

Aug 10, 2023

Four popular EVs and hybrids are now selling for below the manufacturer's suggested retail price, including the Ford F-150 Hybrid and the Hyundai IONIQ 5, according to a report from iSeeCars.com. Yahoo Finance Autos Reporter Pras Subramanian breaks down the report and explains why prices may be falling.

DIANE KING HALL: There's some new data out suggesting there may be reduced demand for electric vehicles. So apparently, pricing for hybrids and EVs in many cases is falling below list price. So what's the story there, Pras?

PRAS SUBRAMANIAN: You know, Diane, recently we've seen EV sell at a higher price point above sticker for quite some time now. But things are changing, according to a report by iSeeCars.com. There are six vehicles in America that sell for an average below sticker price and four of those six are EVs and hybrids. You see them there, the Chrysler Pacifica Hybrid, the Ford F-150 Hybrid, the Ioniq 5 and the Ioniq 6 built from Hyundai.

Now, this is surprising given the fact that on average, dealers are pricing their cars almost $4,000 more than MSRP. So this is really kind of an anomaly here. There's concern that maybe EVs aren't as attractive anymore as gas prices come down. EVs are generally more expensive than their gas counterparts. So, you know, I see two of those listed to the Hyundais, they also don't qualify for the EV tax credit. So that's even a bigger sort of knock for them there.

So as we see more EVs come to dealer lots, we may see further pricing pressure on them assuming prices don't fall to keep up with demand.

SEANA SMITH: Certainly, something I know you're going to continue to watch. Pras Subramanian, thanks so much.

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