Electric car shoppers can take advantage of unprecedented savings right now. While big discounts can be tempting, there can often be important limitations that can have a significant effect on your ability to get the advertised price. In some cases, EV prices may seem downright misleading to consumers looking for a deal.
For example, the below Kia EV6 listing from a dealer in Glendale, California touts a $2,895 discount off MSRP. However, the fine print states that the price includes a $5,000 Kia rebate. As a result, the dealer’s “actual” price can effectively be said to be $2,105 over MSRP. And that’s before possible dealer-installed options.
Next, a San Diego-based Volkswagen dealer is advertising a $15,000 discount on the ID.4 on third-party websites. We reached out to a salesperson at the dealer who confirmed the price, though consumers who skipped the fine print may miss the fact that it’s a discount you can only get when leasing and trading in a car.
Big discounts can be a red flag. While consumers have no control over how dealers choose to market EVs, there are some things they can do to make informed decisions. Consider asking your dealer the following questions:
- Does the listed price include any rebates? If so, which ones?
- Is this a lease price or a purchase price?
- Do I need to finance through the manufacturer to get this price?
- Do you have add-ons that aren’t included in the advertised price?
To make matters even more confusing, dealers sometimes advertise different prices on different websites. In the case of the Volkswagen ID.4 above, the $15,000 discount is listed on the shopping site CarGurus. On the dealer’s website, you’ll find just a $1,651 discount.
Don’t assume that the advertised price is even correct to start with. With the above ID.4, the listing with the $1,651 discount also says the price includes a $7,500 lease incentive and a $2,000 dealer trade-in bonus. So what’s the real price exactly? You’ll need to ask.
The only way to figure this out could be to ask. Fortunately, there are EV deals to be had, some worth serious cash. In the case of the Hyundai IONIQ 5, we’re seeing $10,000 in savings when leasing after a $7,500 lease credit and a $2,500 loyalty discount.
Thanks to a loophole created by the Inflation Reduction Act, manufacturers can offer significant savings on leases. Here are some examples of EVs and plug-in hybrids that have factory incentives that heavily favor leasing over purchasing as a result.
- 2024 Lexus NX PHEV: $7,500 off when leasing, $0 when buying
- 2024 Mazda CX-90 PHEV: $7,500 off when leasing, $0 when buying
- 2024 Polestar 2 EV: $8,500 off when leasing, $1,000 when buying
- 2023 Subaru Solterra: $7,500 off when leasing, $0 when buying
- 2023 Toyota Prius Prime: $4,500 off when leasing, $0 when buying
- 2023 Toyota RAV4 Prime: $6,500 off when leasing, $0 when buying
We think it’s worth noting that automakers sometimes opt to offer other types of discounts, such as promotional financing instead of rebates. Having said that, our analysis found that the vast majority of EVs have discounts that incentivize leasing over buying, and we don’t expect this to change anytime soon.
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