| As inventory bloats, automakers offer large discounts to EV buyers |
Bloated electric vehicle inventory is pushing automakers and dealers to slash prices, with many discounts reaching far into double-digit percentages.
Nissan is offering almost $16,000, or nearly a third, off its Ariya electric crossover, and that's before any state or utility rebates for buyers depending on their location. Mercedes-Benz is giving its EQS SUV a $19,442 cut from an average price of $104,747, a 19 percent discount, according to Cox Automotive.
Automakers discounted EVs nearly $6,000 on average in the first quarter, according to Cox Automotive. (Some dealership-reported incentives may include the federal tax credit if it was applied at the point of sale, the firm said.) Automakers and retailers are offering the discounts to quickly sell the electric models that are flooding dealership lots.
As of April 1, EVs were sitting on dealership lots for an average of 119 days. While that's fallen from a peak of 169 days in mid-February — helped by the discounts — it's still a lot higher than the 73-day supply average of gasoline-powered vehicles. Days' supply — or the average number of days a vehicle stays in dealer inventory before selling — can include vehicles in progress, in transit and on dealership lots.
"Consumers … might want to wait" to buy EVs, said Stephanie Valdez Streaty, director of industry insights at Cox Automotive. "It's a huge investment. Affordability is an issue."
— Hannah Lutz
What you need to know
