Electric Car Prices Finally Beginning to Trickle Down
【Summary】Millennials and Gen Z consumers have been priced out of the electric-vehicle market, but the gap between gasoline-powered cars and EVs is starting to shrink.
It's no secret that climate change and the environment are very important to individuals that make up the millennial and Generation Z generations. Younger members of society have taken it upon themselves to ensure that global warming and planet Earth are kept in check.
One way younger generations are looking to save the planet is by making the switch to an electric vehicle. Unfortunately, they've been priced out of the market, as EVs tend to be a lot more expensive than similarly equipped gasoline-powered cars. Until recently.
The Gap Is Getting Smaller
According to Cox Automotive, consumers that fall between the ages of 25 and 34 only account for 10 percent of electric vehicle purchases. The reasoning behind that is because they simply can't afford a new electric car. Debt, low wages, and high price tags have kept adults in that age range from purchasing EVs. As CNBC reports, the majority of individuals that purchase an electric car have incomes of at least $100,000. And even incomes of $100,000 won't get you into a few EVs on the market.
The newly unveiled Porsche Taycan Turbo starts at $185,000. Porsche being Porsche, the Taycan is available with a dizzying amount of options, which means prices can easily eclipse the $200,000 mark. Obviously, a lot of millennials can't afford that. But it's not just the Taycan. Audi, Jaguar, and Tesla all make electric cars that are well out of the price range for a lot of millennials.
Things are just starting to change, though. CNBC points out that Volkswagen, General Motors, Nissan, and Kia have affordable options on the market. And these brands also have more vehicles in the pipeline. Thanks to the introduction of affordable electric cars, the gap between electric vehicles and gasoline cars is shrinking and will continue to shrink.
Battery Prices Are Falling
As the outlet reports, the cost of batteries found in electric cars has decreased by 70 percent. That's translated to lower price tags. For the Nissan Leaf, the price of the electric hatchback has gone down by 2.5 percent since 2012, while the brand's full-size Maxima sedan has seen its price increase by 7.5 percent. So the gap between the two is smaller than ever and will only get smaller in the future.
One option that some millennials are starting to adopt includes purchasing a used electric vehicle. For older generations, electric cars are seen primarily as status symbols, so buying used isn't a viable option. But for younger consumers that are more concerned with the environment, saving money, and having lower automobile-related costs, buying used represents a much better value option, as pre-owned EVs can cost between 43 percent to 72 percent less than new, claims Edmunds.
Still, younger generations understand how quickly technology can change and are wary of purchasing an electric car to only have it be outdone in a few months. A 2011 Leaf has a range of 74 miles, while a 2019 Leaf Plus can travel 226 miles on a single charge. In just a span of eight years, the Leaf has seen its range capacity triple. If there are any trends to take from the electric-car segment, it's to be patient, as more options with better range and more affordable price tags are sure to come out in the near future
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
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