7 Electric Vehicles That Cost Less Than $40,000

EVs are climbing in popularity, which means that more models are available at below-average prices.
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Written by Funto Omojola
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Fact Checked
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Co-written by Kurt Woock
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As electric vehicles (EVs) become increasingly available, consumers have more options at better prices.

Although plenty of electric vehicles remain beyond the budgets of many car shoppers, average EV prices are nearing equivalency with the price of average gas-powered cars. And, the lowest-cost EVs today have specs that would have been out of reach just a few years ago.

For example, a decade ago, the cheapest Tesla — one of only a few all-electric cars available in the U.S. — was a Model S; it cost $52,400. While the cost of a Model S has nearly doubled to a starting price of more than $71,000, the company has also introduced the Model 3, which has a longer range than the 2013 Model S, for a starting price of $35,990.

That example mirrors the EV market over the past couple of years — the number of models available has multiplied, the number of affordable options has increased and more consumers are purchasing electric vehicles. In fact, the number of EVs sold jumped from 814,829 in 2022 to 1,192,029 in 2023, according to estimates from Kelley Blue Book, an automotive pricing guide.

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The average price for a new electric car in January 2024 was $53,353, according to Cox Automotive, an auto data company. Add in rising interest rates, and the average new car payment is now over $700 per month. This means that people in the market for a new EV stand at the crosswinds of two opposing trends: an increasing number of EV options under “average” prices but this “average” has risen swiftly.

EVs that cost less than $40,000

The EVs below all have a manufacturer’s suggested retail price, or MSRP, of $40,000 or less — under the $47,285 price tag of the average new car (gas or electric) sold in February 2024. They also have ranges above 200 miles, making them more capable of taking longer trips with fewer charging stops — which is important if you don’t also have a gas-powered car.

Note that your price at a dealer might not match the MSRP below. This is because the prices shown are for base models, but the model you see at a dealer might be a different trim level — which means additional, but costlier, features. In addition, fees, like the cost of delivering a vehicle to the dealership, and market adjustments can increase your final price. However, MSRP doesn’t take into account potential savings from rebates or incentives, which could cut the price by about a quarter for the lowest-cost options (more on this below).

Cars and SUVs under $40,000

2023 Chevrolet Bolt

(Image courtesy of Chevrolet)

  • MSRP: $26,500.

  • EPA estimated range: 259 miles.

(Image courtesy of Nissan)

  • MSRP: $28,140.

  • EPA estimated range: 212 miles.

(Image courtesy of MINI)

  • MSRP: $25,800.

  • EPA estimated range: 114 miles.

(Image courtesy of Hyundai)

  • MSRP: $32,675.

  • EPA estimated range: 261 miles.

(Image courtesy of Tesla)

  • MSRP: $38,990.

  • EPA estimated range: 272 miles.

2023 Volkswagen ID.4

(Image courtesy of Volkswagen)

  • MSRP: $38,995.

  • EPA estimated range: 275 miles.

(Image courtesy of Kia)

  • MSRP: $39,600.

  • EPA estimated range: 253 miles.

Rebates and incentives can bring down prices

Some new EVs bought between 2023 and 2032 qualify for up to $7,500 in a federal tax credit.

Here’s what you need to know:

  • To qualify, you must be below income limits — no higher than $150,000 for individuals or $300,000 for married couples filing jointly.

  • The tax credit is nonrefundable. You won’t get a refund check if the rebate exceeds the amount you owe, but it will bring a tax bill of up to $7,500 down to $0 if you qualify for the max amount.

  • Not all cars qualify. Factors such as price, weight, battery size and manufacturing location determine whether an EV qualifies. The IRS maintains an index of cars that do.

In addition to the federal tax credit, you may also qualify for an EV rebate or incentive with your electric company, so be sure to check with your provider.

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