Not even if they paid ME

And we’ll even throw in Pennsylvania

EV Dealers Are So Desperate to Offload Stock That They're Offering Lease Deals For $20 a Month

How soft is the new EV car market? Some EV vehicles have been on their lots for so long that they're offering lease terms so generous, they may as well be giving them away.

A Kia dealer in Virginia only gets a couple of inquiries a month for EVs. The price tag of new vehicles scares them off, says Finance Director Ramon Nawabi. He's got a few EV 6 SUVs that have been on the lot for six months that Kia is now offering discounted leases on top of the $7,500 EV tax credit “just to move the car,” he says. “In a sense, we’re giving them away.”  

That $7500 tax credit helped dealers sell a million EVs in 2022. However, the misnamed Inflation Reduction Act severely limited how that $7500 tax credit could be applied. There are now price caps for EVs ($80,000 for SUVs and trucks; $55,000 for cars), and the batteries must be American-made. Also, the vehicles must be assembled in the U.S. There's also a cap on the net income of the potential buyer.

But you can avoid the restrictions if you lease a new EV. "That’s allowed car companies or dealers to bundle the $7,500 tax credit savings into the lease financing cost, lowering consumers’ monthly payments," reports Bloomberg News.

Also, the bottom has fallen out of the EV resale market. The average price of a used EV fell by 32%over the past year, while the average price of a used gas-powered car fell just 3.6%. It makes no sense to buy a new EV if your purchase loses one-third of its value in one year. 

There are enough worries in buying an EV, including charging, lack of choice, and driving range. Now, owners worry when it comes time to sell the vehicle, they’re not going to get much back.

“Consumers didn’t used to be worried about the resale value of an EV, but (Tesla chief executive Elon) Musk cutting prices made people feel like they owe $50,000 on their Tesla and now, it’s only worth $40,000,” said Pat Ryan, chief executive of free car shopping app CoPilot. "When people see the value of an EV drop so dramatically, it creates a new problem."

Who ya’ gonna believe, the Administration and Al Gore, or your own lyin eyes?

ABC:
More Americans are starting to embrace EVs. Sales of electric cars and trucks last year totaled 1.4 million in 2023, up from 1 million in 2022, U.S. Energy Secretary Jennifer Granholm announced in January.

“The progress that’s been made is phenomenal,” Albert Gore III, executive director of the nonprofit coalition Zero Emission Transportation Association, told ABC News. “The United States has been a leader in electric vehicle manufacturing and also has really been a leader in a lot of good policymaking with regard to investment in every part of the EV and battery supply chain.”

Gore also noted that electric vehicles can have a significant impact on the economy, saying, “There’s a huge amount of opportunity.”

The industrial Midwest, Southwest and Southeast already have seen investment and job opportunities in the production of minerals and battery components for EVs. Georgia, Nevada, Texas, Ohio and Kansas have grown as domestic hubs for battery manufacturing, while Georgia, Tennessee, Ohio and Arizona have risen as leaders in EV manufacturing.

“So a lot of really exciting economic opportunity in these places, and oftentimes it’s multiple parts of the supply chain,” Gore added.