The Electric 2023 Toyota bZ4X Starts At $43,215, But Don’t Count On Tax Credits
Toyota’s electric people-hauler is reasonably priced, but EV tax credits are running out soon.
The all-electric 2023 Toyota bZ4X may have a name that reminds you of being in algebra class—something I was never good at, personally, which is probably how I ended up as a writer—but this modern successor to the old RAV4 EV promises a lot of everyday capability without using gas. With a reasonable price tag, it won't break the bank, either, but don't expect Toyota to be as generous with EV tax credits as some automakers.
Toyota announced today that the new crossover will have a starting MSRP (read: before the crazy dealer markups that are all too common right now) of $43,215 That's for the basic, front-wheel-drive XLE model. Adding all-wheel-drive hikes the price to $45,295. The more well-optioned Limited model with FWD starts at $47,915, and the top Limited AWD one starts at $49,995. That's about in line with the average new car prices we've seen this year, as well as a nicely equipped Toyota RAV4 (again, before dealer markups) and other "mainstream" electric crossovers like the Volkswagen ID.4.
Unlike the Volkswagen, EV tax credits probably won't be a huge part of any bargains to be found here—such as they are in 2022, anyway. As the Associated Press reports, Toyota has sold so many hybrid cars over the years that it's very, very close to reaching the 200,000-car cap on tax credits, and will likely do so before June. The bZ4X goes on sale in spring, so very few buyers will get the full $7,500 federal tax credit before then. Afterward, tax credits will gradually be phased out, which is what also happened to Tesla and General Motors. Credits will drop to $3,750 first and then $1,875 after that.
In other words, if you're interested in an EV purchase but were really counting on tax credits to sweeten the deal, you may want to look to some of Toyota's competitors instead. Cars.com has a list of such vehicles that was current as of January, so that's a good place to start. (Then again, early reviews of the bZ4X have described it as "An Adequate First Attempt" and "Perfectly Fine," so if you go another route you may not be missing much here anyway.)
Indeed, this car's twin—the Subaru Solterra—does qualify for these tax credits, which is pretty much the biggest case against buying one from Toyota. Not only that, but you also get AWD as standard if you pick the Subaru, so it's a real twofer.
The bZ4X is Toyota's first truly modern full EV after decades spent focusing on hybrid cars and hydrogen power in certain select markets. The bZ4X packs one electric motor for FWD and two for AWD and those have battery sizes of 63.4 kWh and 65.6 kWh, respectively. Range is rated at up to 252 miles for the XLE FWD models, but that number drops below 230 miles for the AWD variants. While it's arguably not a class-leading EV for Toyota, it's likely to be a decent seller for the segment and it's surely the first of many big things to come.
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