Holiday car deals: It could be your last chance to snag a cheap electric vehicle

• It won’t be hard to find a bargain on a car this holiday season.
• The best deals will be focused on the EV market.
• It could be your last chance to get a really good deal on an electric vehicle.

This holiday season could be your last chance to score thousands of dollars in discounts on electric vehicles.

Holiday car deals are expected to be generous overall this year as several brands face oversupply. According to Edmunds data, brands with the deepest discounts in November included Stellantis’ Ram and Volkswagen’s Audi, both of which have struggled with slow sales this year.

But the best deals are likely to be concentrated in the electric vehicle market, where automakers are trying to unload the last of their excess supply before cutting production next year in response to weaker demand.

According to Ivan Drury, automotive analyst at auto shop website Edmunds, this holiday season is likely to be the final push for the big electric car discounts that dominated the market in 2024.

It’s been a turbulent year for the electric vehicle market as companies scramble to adapt their offerings to changing demand. The affluent early adopter buyer base dried up and was replaced by bargain-hungry buyers who were more willing to compromise on a hybrid model.

That’s been a problem for many automakers just starting to bring large, expensive electric vehicles to market.

The ongoing price war in this segment has created a buyer’s market for electric vehicles, particularly in leasing. Access to a $7,500 electric vehicle tax credit has also helped auto companies by further reducing purchase prices and stimulating demand.

These discounts could end in the near future as President-elect Trump has promised to eliminate them.

Here’s what you need to know if you’re looking for an EV deal this holiday season.

The discounts on electric vehicles should be larger than the offers on gasoline cars

If you’re just looking for a great deal, look no further than the electric vehicle market.

Manufacturers and dealers have spent most of this year shedding slow-moving electric vehicles, meaning discounts are much higher than in other vehicle segments.

For EV buyers, the average discount on an EV in November was more than $3,560 off the sticker price, according to Edmunds. That compares to an average discount of $1,885 for gasoline-powered vehicles.

However, any EV will likely cost more overall than a comparable gas-powered alternative, even with these rebates (and a possible $7,500 EV tax credit).

With the rebates, the average price of an electric car was $59,228 last month, about $12,000 more expensive than the average price paid for a gasoline-powered car over the same period.

Focus on the monthly payment

If you want a deal and are on a tight budget, leasing might be the right solution.

Thanks to a mix of rebates and government incentives, a good lease can get you a lower monthly payment on an electric car than on a gas-powered car.

According to Edmunds, electric vehicles with sticker prices under $50,000 were leased for an average of $44,570 in November, including discounts offered by the dealer or manufacturer. With down payments of around $2,400, the average monthly payment for these electric vehicles was $428. That’s $144 per month cheaper than the same segment of gasoline-powered cars.

Electric vehicle leasing surged in the second half of this year as dealers and manufacturers exploited a loophole in tax credit rules. According to Edmunds, leases now account for a majority of electric car purchases as green car buyers value affordability.

Dealers and manufacturers like these leases because more of their vehicles can qualify for the additional $7,500 electric vehicle tax credit. Restrictions that went into effect in January made it harder for electric vehicle buyers to qualify for the credit, but lessees are not held to the same standards.

Leasing is generally a lower risk financial obligation because the lessee is only responsible for depreciation over the lease term.

The monthly rate for a leasing is also more flexible than for a financed car, as it is calculated using somewhat muddy numbers. The lender subtracts the car’s estimated residual value from its current value and divides it by the lease term (plus taxes and fees, of course).