--- title: "The Average New EV Costs $14,000 Less Than It Did a Year Ago: KBB" description: "New car prices have stabilized since the start of the year, which is a sign that average car prices could be coming down." date: "2023-10-13" modified: "2023-10-13" authors: - name: "Nico DeMattia" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/nico-demattia" url: "https://www.thedrive.com/news/the-average-new-ev-costs-14000-less-than-it-did-a-year-ago" categories: - "Car Tech" - "Electric Vehicles" - "News" --- # The Average New EV Costs $14,000 Less Than It Did a Year Ago: KBB ![]() *\Getty\* Customers have been waiting since the pandemic for new car prices to chill out and come back down to normal levels. According to *[Kelley Blue Book]()*, the average transaction price (ATP) for a new car in September 2023 is 24% higher than it was in 2020. However, it seems as if new-car ATP might finally be steadying and, if you're looking for an electric vehicle, even dropping significantly. Data from *KBB's* parent company, Cox Automotive, shows that ATP was at its peak at the start of 2023, at almost $50,000. However, it dropped 3.4% since then and is now at $47,899. That's the first time it's been under $48,000 in over a year. So while new car prices are still significantly higher than they were in 2020, they're the best they've been in a long time. Electric vehicle ATP dropped drastically over the past year. However, as more and more customers are looking to get into EVs, the state of ATP might look good on paper but it could be artificially enhanced. For example, EV ATP is down about $14,000 from this time last year, which sounds great, but the majority of that comes from [Tesla's]() dramatic price cut toward the end of 2022 and the beginning of 2023. Tesla's ATP alone has dropped 22% since September 2022. However, the more new EVs that debut, the greater the choice customers have, which will increase the competitiveness of EV maker pricing and incentives, so we could be seeing the start of a trend that will lower EV ATP. ![]() One of the reasons why ATP has gone down since January is automaker incentives. Cash incentives have been down since the pandemic due to a low supply of new cars—mostly manufacturing delays and chip shortages. Incentives are making a comeback, though, and averaged almost $2,400 in September, around 4.9% of the ATP. That's down from the 20% in September of 2020 but new-car supply is normalizing, so automakers can offer more incentives. The better the supply, the better the deals. At least that's how it's worked historically. As for EVs, Cox's data shows that electric car incentives were among the highest in the industry, at an average of 9.8% of ATP. That was second only to high-end luxury cars, whose incentives averaged 10.6% of vehicle ATP. There's some worry that the current [UAW strike]() could affect new-car ATP. With the strike shutting plants down for all of the Big Three Detroit automakers, new-car inventory could be affected. Automakers measure their inventory in days' worth and, according to *KBB*, domestic automakers had around 60 days of inventory in early October, which is lower than pre-pandemic levels but closer to normal than it's been since. The UAW strike should be temporary, though, and even if it does affect inventory, it won't cause years-long ATP raises as the pandemic did. ![Tesla Model X Inline]() **Tesla* via Tesla* “At last check, we had 15 new EV models for sale that were not available a year earlier. Better choices and more options are helping push prices lower and drive higher sales,” said Stephanie Valdez-Streaty, director of Industry Insights at Cox Automotive, in a press release. Finding a new car deal has been an absolute pain over the past few years, especially for EV buyers. Thankfully, there are some signs of it getting easier, as ATPs have stabilized and new-car inventory is building back up. With more and more EVs hitting the market, it should only get better. Hopefully. *Got tips? Send 'em to tips@thedrive.com* ## Author Nico is a writer and reviewer from New Jersey who probably thinks he’s a lot funnier than he actually is. His love of cars began when he was just a kid playing Gran Turismo 3, grinding out enough race wins with a Mazda Miata to save up for an in-game RUF 911. That passion for small, lightweight sports cars drove his desire to learn more about the industry, get his hands on as many cars as he could, and bring those experiences to life on the page. He cut his teeth writing about BMWs, Volkswagens, and Audis, mostly, and has owned far too many of each. He’s on his fourth 3 Series sedan, but all of his old, cheap German cars have forced him to learn more about car maintenance than his mechanical capability can handle. Too many late nights have been spent scrambling to get a car running by morning so he could get to work. For some reason, he never seems to learn that old Bimmers probably aren’t the best daily drivers. But he loves more than just old German cars. He’ll gladly drive and discuss anything with four (or even three) wheels. Cars aren’t his only passions, though. Nico is also a big nerd and loves movies, video games, comic books, and cares far too much about the New York Giants. So don’t be surprised if you see football references or dumb, obscure movie quotes in any of his car reviews. ### Author social links [Instagram]() [LinkedIn]()