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This holiday season could be your last chance to get discounts worth thousands of dollars on electric vehicles.
Holiday car deals overall are expected to be generous this year, as several brands face oversupply. Edmunds data said brands with some of the deepest discounts in November include Stellantis's Ram and Volkswagen's Audi, both of which have struggled with slow sales this year.
But the best deals will likely be concentrated in the EV market, where car companies are looking to offload the last of their oversupply before pulling back production next year in response to slower demand.
This holiday season is likely to be the last gasp for the big EV discounts that dominated the market in 2024, according to Ivan Drury, an automotive analyst for car-shopping website Edmunds.
It has been a topsy-turvy year for the EV market as companies scrambled to adjust their offerings to meet changing demand. The wealthy early adopter buyer base dried up, and was replaced by bargain-hungry shoppers more willing to compromise with a hybrid.
That has been a problem for many car companies, who are just now rolling out big, expensive EVs.
An ongoing price war in the segment has led to a buyer's market for EVs, particularly when it comes to leasing. Access to a $7,500 EV tax credit has also helped car companies by further lowering purchase prices and stimulating demand.
These discounts could end in the near future, as President-elect Trump has vowed to dismantle them.
Here's what you need to know when hunting for an EV deal this holiday season.
Look no further than the EV market if a great deal is all you're after.
Manufacturers and dealers have spent most of this year trying to offload slow-moving EVs, which means that the discounts are much deeper than other car segments.
For people purchasing an EV, the average discount on an electric vehicle in November was more than $3,560 off the sticker price, according to Edmunds. That's compared to an average discount of $1,885 on gas-powered vehicles.
Any EV will likely cost more overall than a comparable gas-powered alternative, however, even with these discounts (and a potential $7,500 federal EV tax credit).
Discounts included, the average price of an EV last month was $59,228, or about $12,000 more expensive than the average price paid for a gas-powered car in the same period.
If you want a deal and you're on a tight budget, leasing may be the way to go.
Thanks to a mix of discounts and government incentives, a good lease deal can help you get a lower monthly payment for an EV than a gas-powered car.
EVs with sticker prices under $50,000 in November leased for an average of $44,570 when including discounts offered by the dealer or manufacturer, according to Edmunds. With downpayments around $2,400, the average monthly payment on these EVs was $428. That's $144 a month cheaper than the same segment of gas-powered cars.
EV leasing has taken off in the second half of this year as dealers and manufacturers take advantage of a loophole in the tax credit rules. Leases now account for a majority of EV purchases, according to Edmunds, as green-car shoppers prioritize affordability.
Dealers and manufacturers like these leases because more of their vehicles can qualify for the additional $7,500 EV tax credit. Restrictions that went into effect in January made it harder for EV purchasers to qualify for this credit, but lessees are not held to the same standards.
Leasing is a lower-stakes financial commitment in general, as the lessee is only responsible for the depreciation during the lease term.
The monthly payment on a lease is also more malleable than on a financed car because it is calculated with somewhat squishy numbers. The lender subtracts the estimated residual value of the car from the current value and dividing that by the lease term (plus taxes and fees, of course).
