Oct 6, 2022 - Economy

A quarter of electric car buyers are on the hook for $1,000+ payments

Percentage of vehicles financed with payments of $1,000 or more
Data: Edmunds. Chart: Madison Dong/Axios Visuals

Many electric vehicle (EV) buyers are committing to monthly payments of $1,000 or more, per new data from automotive site Edmunds.

Why it matters: It's another sign that EVs are still too expensive for many — though broader economic factors (such as rising interest rates) are also playing a role.

  • EVs had an average transaction price of $61,955 in August, Edmunds says.

By the numbers: Among EV buyers who financed their purchase in the third quarter of 2022, 26% are on the hook for $1,000 or more a month, per Edmunds.

  • That's compared to 24% of plug-in hybrid buyers, 14% of traditional gas vehicle shoppers, and 4% of hybrid buyers.

The big picture: It's not just EV buyers, as seen in the chart above. A record level of overall car buyers committed to $1,000+ monthly payments in Q3, at 14.3% compared to 8.3% in the third quarter of 2021.

  • Big gas-guzzling trucks and SUVs — like the Ford F-150, RAM 1500, and Chevy Tahoe — topped Edmund's list of vehicles ranked by their share of $1,000+ monthly payments.

What they're saying: "Ongoing inventory shortages are partly to blame, but this trend is also a reflection of consumer preferences," Edmunds' executive director of insights Jessica Caldwell said in a statement.

  • "In the past decade, we've seen Americans embrace a bigger-is-better mindset by gravitating toward larger vehicles with more creature comforts, technology-heavy features, and, more recently, electrified powertrains — but that all comes with added cost."
  • "Rising interest rates combined with higher prices have sent monthly payments soaring to new heights."
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