You’re not imagining it: new electric cars are still expensive. In early 2025, the average new EV in the U.S. sells for a few thousand dollars more than a comparable gas car, and that’s before you even think about home charging. At the same time, battery costs are falling and used EV prices are dropping like a stone. So will electric cars get cheaper, or is this as good as it gets?
Short answer
Yes and no. New EVs will get gradually cheaper to own, not necessarily dramatically cheaper to buy. The clearest bargains over the next few years are in the used EV market, especially when you understand battery health and incentives.
Will electric cars actually get cheaper overall?
Key EV price trends heading into 2026
To answer whether electric cars will get cheaper, you have to split the question in two: sticker price and total cost of ownership (TCO). Sticker price is what shocks you in the showroom. TCO is what quietly drains or fattens your bank account over five to ten years.
- Sticker prices for new EVs are easing, not collapsing. Expect steady pressure downward as batteries get cheaper and competition intensifies, but not a $10,000 overnight discount on every model.
- Used EVs, on the other hand, are already much cheaper, some have lost 50–70% of their value in five years, which is painful for first owners and a gift for second owners.
- When you factor in fuel and maintenance, many EVs will feel cheaper to own than gas cars by the late 2020s, even if the MSRP is higher.
Where real savings are hiding
If you’re hunting for a deal, the biggest discounts are now in used EVs, especially 2–5‑year‑old cars with healthy batteries and modern range. This is exactly the segment Recharged focuses on, with verified battery diagnostics to help you separate hidden gems from future headaches.
Why EVs still cost more than gas cars in 2025
Despite aggressive price cuts from big players, new EVs still carry a premium. Recent data shows new electric vehicles in the U.S. transacting roughly $6,000 higher than gas cars on average. That gap is narrower than it was a few years ago, but it hasn’t vanished.
What keeps new EV prices elevated?
Three forces that haven’t finished working their way through the system
Battery & tech costs
Even with falling prices, the battery pack remains the single most expensive component in an EV. Add in power electronics, motors, inverters and advanced driver‑assist tech, and you’re building a rolling computer.
High-spec lineups
Most of today’s EVs are mid‑ to high‑trim models loaded with features. There just aren’t many truly bare‑bones EVs yet, which skews the average price upward compared with gas cars that include lots of cheap, entry‑level models.
Scale & factory amortization
Automakers invested tens of billions into new EV platforms, factories and battery plants. They’re still paying those bills, and early buyers are helping shoulder that cost until volumes ramp up further.
Not all price cuts are permanent
The EV world has been living through an aggressive price war, especially among Teslas and Chinese brands. It’s smart to assume some current discounts are cyclical, not the forever “new normal.” What lasts is structural cost reduction, especially in batteries.
Battery prices: the biggest driver of cheaper EVs
If EV pricing has a beating heart, it’s the battery. Auto folks talk about battery cost in dollars per kilowatt‑hour (kWh). That number has been marching down for a decade, with a notable stumble in 2022–2023 when raw material prices spiked, and then a big recovery.
- Global average lithium‑ion battery pack prices fell about 20% in 2024 alone, landing near $115 per kWh.
- Goldman Sachs and others now see average pack prices drifting toward ~$80 per kWh around 2026, a level many analysts view as the tipping point where EVs achieve true cost parity with gas cars on an unsubsidized basis.
- Cheaper lithium‑iron‑phosphate (LFP) chemistries and cell‑to‑pack designs are helping automakers squeeze more energy out of fewer materials.
What falling battery costs mean for you
- Automakers can either cut prices, add range, or add margin, and usually juggle all three.
- Entry‑level EVs with smaller packs will benefit first, because the battery is a larger share of their total cost.
- More affordable long‑range trims become possible without sacrificing profit.
Why this doesn’t feel huge at the dealer yet
- Factories and supply chains don’t reprice overnight; model cycles run 5–8 years.
- Dealers and automakers are cautious about undercutting residual values for existing owners.
- In the U.S., policy and incentives can cancel out or amplify battery‑driven cost savings in a way that looks messy from the outside.
A practical rule of thumb
As battery pack prices drift toward $80/kWh, expect new mass‑market EVs to match or beat comparable gas cars on five‑year cost of ownership, even if the MSRP on the window sticker is still a bit higher.
New EVs vs. used EVs: where prices are falling fastest
The sharpest EV discounts are not on new‑car lots; they’re hiding in the used market, especially among luxury and early‑generation models. Several studies in 2024–2025 show used EVs dropping 15–30% year‑over‑year, versus low single‑digit declines for gas cars. Some models lose more than half their value in five years.
How fast are some EVs losing value?
Illustrative five‑year depreciation estimates from recent market analyses, exact numbers vary by mileage and condition.
| Model (example) | Approx. original MSRP | Est. value after 5 years | Approx. loss | % drop |
|---|---|---|---|---|
| Jaguar I‑Pace | $72,000 | $20,000 | $52,000 | −72% |
| Mercedes EQS | $104,000 | $41,000 | $63,000 | −61% |
| Tesla Model S | $75,000 | $28,000 | $47,000 | −63% |
| Nissan Leaf | $36,000 | $13,000 | $23,000 | −64% |
| Tesla Model Y | $45,000 | $24,000 | $21,000 | −47% |
Luxury EVs get hit hardest, but even mainstream models are seeing aggressive depreciation, which is bad news for first owners and great news for savvy used‑EV buyers.
The elephant in the room: resale value
Today’s poor resale values are the EV industry’s biggest PR problem. Buyers see headlines about 50–70% losses in five years and get spooked. But remember: that same brutal depreciation is why second‑hand EVs can now undercut new gas cars on price, sometimes by a wide margin.
Visitors also read...
If you’re shopping the used market, the missing piece is battery health. Two visually identical 3‑year‑old EVs can have very different real‑world range left. That’s why Recharged puts a Recharged Score on every vehicle, backed by verified battery diagnostics, so you’re not guessing about the most expensive part of the car.
How incentives and tax credits could change EV pricing
In the U.S., the price you pay for an EV isn’t just about engineering; it’s about Congress. Federal tax credits under the Inflation Reduction Act helped soften EV prices, especially through leasing, where the commercial credit effectively turned into a discount on many models.
- There’s active political pressure to scale back or eliminate EV tax credits after 2025–2026. Several proposals in the House would phase them out earlier than originally planned.
- If major federal credits vanish, transaction prices could effectively jump by several thousand dollars overnight, even if MSRPs stay put.
- Some automakers are already pivoting toward lower‑cost models and leaner trims so they’re less dependent on incentives to move metal.
Why incentives make the price picture noisy
A 2025 EV that qualifies for a $7,500 credit or equivalent lease incentive might feel cheap today and remarkably expensive the day after that support disappears. If you’re counting on incentives, verify what’s available in your state and how long it’s likely to last before you plan your purchase timing.
Will maintenance and running costs stay lower for EVs?
Even if EV sticker prices don’t collapse, the running costs are where the long‑term savings quietly add up. Study after study shows EVs tend to save money on maintenance and, depending on your utility rates, on energy.
Where EVs claw back money over time
The less glamorous side of “cheaper” that matters more than people think
Maintenance
No oil changes, fewer moving parts, and regenerative braking can mean longer brake life. You’ll still have tires, cabin filters and the occasional software quirk, but overall maintenance tends to be lower than comparable gas cars.
Energy costs
Electricity rates have nudged up in many regions, but per‑mile energy cost for home charging is typically below gasoline, especially if you can charge off‑peak. Frequent DC fast charging is the exception, not the rule.
Longevity & software
Well‑managed batteries are proving more durable than early skeptics predicted. And software updates can improve efficiency or add features over time, stretching value in ways gas cars can’t match.
Think like an accountant, not a shopper
When you’re comparing an EV to a gas car, force yourself to run a five‑year total‑cost‑of‑ownership estimate: financing, insurance, energy, maintenance, and expected resale. The EV might lose the showroom beauty contest and still win on money.
Timeline: when electric cars should feel cheaper to buy
How EV affordability is likely to unfold
2025–2026: Volatile but improving
Battery pack prices continue to fall, but incentives and politics keep monthly payments choppy.
New EV transaction prices stay <strong>somewhat above</strong> gas cars on average, but the gap narrows.
Used EV values remain under pressure, <strong>prime time for value hunters</strong> willing to buy second‑hand with a battery report.
2027–2029: Quiet cost parity
Average battery costs approach the <strong>$80/kWh range</strong>, unlocking more truly mass‑market EVs.
On a five‑year horizon, <strong>many mainstream EVs cost the same or less to own than gas equivalents</strong>, even without subsidies.
More competition from legacy brands and new entrants pushes <strong>MSRPs down or equipment levels up</strong> at the same price.
2030 and beyond: EV as the default
Regulations and fleet decisions steadily favor EVs over new gas models in many markets.
The used EV market is mature, with <strong>plenty of 7–10‑year‑old cars</strong> whose battery health can be measured and priced rationally.
At this point, you’re more likely to ask whether a gas car is worth the premium, not the other way around.
How to shop smart if you’re waiting for cheaper EVs
6 smart moves if you want a cheaper EV
1. Decide what “cheaper” really means
Is your goal <strong>lowest monthly payment</strong>, lowest total cost over 5 years, or simply a price that feels comfortable? Clarifying that makes it easier to compare a discounted new EV, a used EV, and an efficient hybrid.
2. Look hard at 2–5‑year‑old EVs
This is where <strong>depreciation has already done its worst</strong>. Many 2–5‑year‑old EVs offer modern range and safety tech at a steep discount versus new. The key is verifying battery health instead of guessing.
3. Demand real battery data, not just a test drive
A quick spin around the block won’t tell you if a pack is 95% healthy or 75%. Recharged uses <strong>battery health diagnostics and the Recharged Score</strong> so you can see how much real‑world range is left before you commit.
4. Factor incentives in, but don’t rely on them
Check current <strong>federal, state and utility incentives</strong> and run the numbers both with and without them. If a deal only works when a fragile incentive stack holds, think twice.
5. Compare total cost, not just MSRP
Use a simple spreadsheet or calculator to compare <strong>payment, fuel/energy, maintenance and resale</strong> for your short‑listed cars. A slightly pricier EV today can beat a cheap gas car over five years.
6. Consider financing and trade‑in together
Your current car and your interest rate are part of the price story. Recharged can <strong>value your trade, make an instant offer, or sell your EV on consignment</strong>, and help you explore financing so you see the full picture, not just the sticker.
FAQ: will electric cars get cheaper?
Frequently asked questions about EV prices
Bottom line: should you wait or buy an EV now?
Electric cars are on a long glide path from early‑adopter luxury item to everyday appliance, and price is finally starting to reflect that. Battery costs are falling fast, used EVs are quietly turning into the best deals in the lot, and within a few years many mainstream EVs will be no more expensive to own than their gas counterparts, even if the sticker still makes you blink.
If you’re hypersensitive to paying a dollar more than you have to, you can wait for the next wave of lower‑cost models and battery improvements. If you’re more interested in locking in lower fuel and maintenance costs and you’re open to buying used, the market is already serving up compelling options, especially when you shop with transparent battery health, fair pricing data, and EV‑savvy guidance.
How Recharged fits into this picture
Recharged was built for exactly this moment in the EV market. Every used EV we sell comes with a Recharged Score Report that verifies battery health, checks pricing against the market, and walks you through total cost of ownership. You can finance, trade in, get an instant offer, or even sell on consignment, all backed by EV specialists who do this all day, not as a side hustle. If you want an electric car that feels cheaper in the ways that actually matter, this is where you start.
