Electric Cars with Massive Discounts: Top 10 Deals Right Now

As the demand for big and expensive electric cars slows down and federal incentives dwindle, dealers and manufacturers are offering massive discounts on electric vehicles (EVs) to boost sales. These discounts have been increasing since last summer when EVs started piling up on dealer lots. Additionally, Elon Musk’s aggressive discounting of popular Tesla models, the Model 3 and Model Y, has contributed to the growing trend of discounts in the EV market.

According to Kelley Blue Book, by the end of last year, electric cars were experiencing some of the highest discounts ever recorded. Average EV incentives skyrocketed to 9.8% of average transaction prices, a significant increase from just 2% a year earlier. This trend has continued into this year, with some of the most expensive models seeing the biggest price cuts.

Changes to the requirements for a $7,500 electric vehicle tax credit have also placed more responsibility on dealers and manufacturers to offer discounts. As a result, affordability has become a crucial factor for the success of electric cars, as demand from wealthy early adopters in the EV segment diminishes.

To help you navigate the current market and find the best deals on EVs, we reached out to Edmunds for a list of the most discounted electric cars in January. It’s important to note that these discounts do not account for the $7,500 federal tax credit for qualifying vehicles. Here are the top 10 electric cars with massive discounts:

1. Mercedes-Benz EQE SUV
– Average transaction price: $82,171
– Sticker price: $92,173
– Average discount: $10,002

The Mercedes-Benz EQE SUV is a formidable competitor to Tesla, targeting the heart of the US car market. While it may not be the most visually appealing option, Business Insider praised its overall performance and features.

2. BMW i7
– Average transaction price: $126,307
– Sticker price: $135,456
– Average discount: $9,194

The BMW i7 is an ultra-luxurious sedan designed to rival Tesla’s Model S. With its sleek design and cutting-edge technology, it offers a premium electric driving experience.

3. Volvo C40 Recharge
– Average transaction price: $52,701
– Sticker price: $61,647
– Average discount: $8,946

Volvo’s second EV for the US market, the C40 Recharge, is a slightly smaller option compared to its older sibling, the XC40 Recharge. It boasts Scandinavian elegance and sustainability.

4. Porsche Taycan
– Average transaction price: $127,700
– Sticker price: $134,314
– Average discount: $6,614

The Porsche Taycan has long been a leader in the ultra-luxury electric vehicle market, competing fiercely with Tesla’s Model S. The recent discounts on the Taycan align with Tesla CEO Elon Musk’s price reductions for the Model S.

5. Lexus RZ 450e
– Average transaction price: $59,746
– Sticker price: $64,238
– Average discount: $4,492

Lexus’s first electric vehicle debuted last year, joining the lineup of luxury EVs. With its stylish design and advanced features, the RZ 450e offers a comfortable and eco-friendly driving experience.

6. Audi Q8 e-tron
– Average transaction price: $80,963
– Sticker price: $85,367
– Average discount: $4,404

Positioned as a competitor to Tesla’s Model X and Model Y, the Audi Q8 e-tron has also received significant discounts in the past year. It combines Audi’s renowned craftsmanship with electric performance.

7. Volkswagen ID.4
– Average transaction price: $47,593
– Sticker price: $50,874
– Average discount: $3,281

The Volkswagen ID.4 was one of the first electric SUVs to challenge Tesla’s Model Y when it debuted in 2020. Its positioning as a more accessible option for first-time EV buyers has resulted in larger discounts.

8. BMW i5
– Average transaction price: $81,466
– Sticker price: $84,670
– Average discount: $3,204

The BMW i5 is the latest addition to the German luxury carmaker’s electric sedan lineup. It entered the market during a period of decreased demand for expensive EVs.

9. BMW i4
– Average transaction price: $61,821
– Sticker price: $64,973
– Average discount: $3,152

The BMW i4 is known for its sporty performance among the German automaker’s electric sedans. With its sleek design and dynamic driving capabilities, it offers an exhilarating electric driving experience.

10. Hyundai Ioniq 5
– Average transaction price: $50,944
– Sticker price: $54,002
– Average discount: $3,058

The Hyundai Ioniq 5 has garnered attention from both average drivers and auto critics alike. It made history by becoming the first EV to win MotorTrend’s SUV of the Year award in 2022.

These massive discounts on electric cars provide an excellent opportunity for potential buyers to enter the EV market and experience the benefits of electric driving. The combination of lower prices and advancing technology makes this an exciting time for the electric car industry.