Why I Compile a List of the Cheapest Electric Vehicles
This article will rank the cheapest new electric vehicles in 2024 sold in the U.S. market (as of Jan., 2024), including a few prior year releases that are still for sale this year. With all of the recent changes to the electric vehicle tax credits (a must read for those interested in purchasing an electric vehicle in 2024 and beyond), anyone in the market for a new vehicle could benefit from knowing what the cheapest EVs in 2024 are. And, why wouldn’t you have at least a little interest in going electric at this point? As most of us recently experienced, being captive to gas price profiteering and politics is not a fun place to be.
The incentive to go electric these days is no longer just avoidance of the negative – which brings me to the other reason to share this list of the cheapest electric cars. We’re seeing automakers deliver on meeting consumer demand for affordable, efficient, attractive, high-range new electric cars, trucks, crossovers, and SUVs.
The Hyundai Ioniq 5 is one of the 10 cheapest electric vehicles despite winning “world car of the year” and “world car design of the year” awards.
As a result of these 2 trends converging, plug-in electric vehicle sales increased to 1.4 million vehicles last year, a 9.1% market share and a 50% increase year-over-year in the U.S. market. 1.1 million of those vehicles were fully electric, while the rest were plug-in hybrids. With exciting new electric vehicle models, including plenty of pickup trucks, crossovers, and SUVs hitting the market, Clean Vehicle tax credits from the Inflation Reduction Act, and many Americans still having PTSD on high gas prices, the shift towards electric vehicles should continue in 2024.
Many EVs are Now Affordable for the Mass Market
I’ve always been a fuel economy nerd and have kept a close eye on the most efficient vehicles over the past decade plus. When I first started compiling that list, every single vehicle was a gasoline-electric hybrid (primarily gasoline-powered with a tiny electric-only range, e.g. the original Toyota Prius) or simply a small, efficient gas-powered vehicle with a tiny combustion motor. Today, every vehicle on that list is 100% powered by electric batteries. That will be the case for the next few decades, until hydrogen or another yet to be imagined power source technology overtakes electricity.
What had always bothered me with electric vehicles in the past, however, was the astronomical prices of many of those vehicles. This is a personal finance website, after all, and transportation costs have quietly become the second highest expense category per household in the U.S., on average. This is why I’ve also kept track of the cheapest new cars. As a personal finance writer, I should note that electric vehicles are typically still more expensive than their gasoline counterparts in terms of purchase price.
EV affordability is quickly changing, particularly with the expanded federal tax credits and an increasing number of state electric vehicle tax credits. And, total cost of ownership continues to tilt in the favor of electric vehicles, particularly with gas prices increasing and the ongoing cost of ownership of electric vehicles being lower than gasoline-powered vehicles. All of these emerging trends have combined to make many electric vehicles affordable for the mass market – starting with this list of the cheapest electric cars, trucks, and SUVs here.
Don’t Ignore the Enhanced Federal Energy Tax Credits & New Rebates from the Inflation Reduction Act
If you’re interested in EVs, don’t ignore the new federal energy tax credits and rebates. There are significant updates that resulted from the Inflation Reduction Act available (including solar panels, electrical panels, battery storage, and EV charging) that could make the prospect of electric vehicle ownership an even bigger cost-saving venture. The linked-to article is a complete guide to the 2 improved energy tax credits and 2 new energy rebates available to Americans.
New Cheap Electric Vehicles Launching in 2024
If this list of the cheapest electric vehicles was made at the end of 2024 instead of the beginning, it might look quite different. The Chevy Bolt and Bolt EUV (the current #1 and #2 cheapest EVs) are still being sold, but production ended last year (the Bolt EUV will return in 2025 on GM’s Ultium battery line).
A few new vehicle launches in 2024 will likely come with MSRPs that could place them on the cheapest EV list:
- Chevy Equinox EV: GM has cited a $30,000 MSRP previously, but rumors are that it will likely be more around $35,000 at launch. The Equinox EV is expected to launch “early 2024”.
- Volvo EX30: Volvo lists a $34,950 base MSRP. The EX30 is expected to launch “mid 2024”.
- Fiat 500E: Fiat lists a $32,500 base MSRP. The 500E is expected to re-launch “early 2024”.
A few newer releases narrowly missed the 2024 list that could also be worth checking out, depending on lease incentives:
- Hyundai Ioniq 6: the base SE RWD model has an MSRP of $43,565. I’ve seen lease bonus cash offers up to $7,500.
- Kia EV6: the base Light RWD model has an MSRP of $43,925. I’ve seen lease bonus cash offers up to $7,500.
- Nissan Ariya: the base Engage FWD model has an MSRP of $44,555.
Falling off from last year’s list of the cheapest EVs is the Mazda MX-30, which came in at #6. Mazda has ended its production. You may still be able to find one on a lot somewhere, but note that it boasts a paltry 100 mile range, so I’d stay clear.
And, finally, I wanted to give special mention to the Tesla Model Y. It narrowly missed this list with a base MSRP of $45,630, but it is one of the few vehicles eligible for the $7,500 federal tax credit in 2024. That would bring its purchase price (minus tax credit) down to $38,130.
Electric Vehicle Price Ranking, Efficiency, Range, & Other Metrics
For the specs listed in the ranking below:
- efficiency (MPGe, or miles per gallon equivalent), CO2 emissions (both tailpipe and upstream), and annual energy (electricity) cost metrics were gathered from the EPA’s fueleconomy.gov site.
- Upstream (non-tailpipe) CO2 emissions are national averages (assuming the individual does not have their own electricity generated and is purchasing from a utility), and is comparable to a new gasoline-powered vehicle’s upstream and tailpipe average emissions of about 400 grams/mile.
- Annual energy costs listed are based on 45% highway, 55% city driving, 15,000 annual miles and $0.15 per kWh of electricity.
- For MSRP, I have listed the base price (including destination charges) prior to any federal or state tax credits. These prices are direct from the automaker.
“Clean Vehicle” EV Tax Credit Details for 2024
Note that the (up to) $7,500 electric vehicle tax credit, now referred to as the “clean vehicle tax credit” went through a number of seismic changes with the passage of the Inflation Reduction Act, which are now active. The 5 biggest changes are:
- Major vehicle requirement changes:
- have a battery capacity of at least 7 kilowatt hours.
- be made by a qualified manufacturer
- have final vehicle assembly in North America
- meet certain battery and minerals sourcing criteria
- have a maximum vehicle MSRP of $80,000 for vans, sport utility vehicles and pickup trucks and $55,000 for other vehicles.
- No more automaker # of vehicles sold phaseouts: theoretically GM, Tesla, and Toyota are once again eligible for the full electric vehicle tax credit amount (up to $7,500), provided they meet other criteria.
- Taxpayer modified adjusted gross income (MAGI) eligibility caps were added.
- Used vehicles are now potentially eligible for a tax credit as well.
- Starting in 2024, dealerships will be able to offer the value of a tax credit up front to consumers.
The “final vehicle assembly in North America” and battery and minerals sourcing criteria are going to dramatically impact which electric vehicles are eligible for the full $7,500 clean vehicle tax credit as a number of major automakers manufacture their vehicles outside of North America. The IRS recently released new guidance on this for 2024, resulting in a revised list of vehicles that are eligible for the Clean Vehicle Tax Credit in 2024. Right now, that list is pretty thin. One bright spot is automaker financing arms voluntarily passing along $7,500 EV lease tax credit loophole offers to consumers.
So, before you run out to buy an electric vehicle, make sure that you’ve done your homework (the article I highlighted at the top of this one should help, but is really just a starting point, as everything is going to be a moving target).
And, finally, for anyone claiming an electric vehicle tax credit for last year or this year, the best tax programs and even cheapest ways to e-file will have versions of their product that will walk you through both federal and state electric vehicle tax credit eligibility.
The 10 Cheapest Electric Vehicles of 2024 Ranking (U.S. Market):
Here are the top 10 cheapest electric vehicles of 2024 sold in the United States, from #10 to #1.
10. Toyota bZ4X
- Base Electric Model: Toyota bZ4X XLE
- Base MSRP (before tax credits or other incentives): $44,420
- Clean Vehicle Tax Credit Eligibility: currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 119
- City MPGe: 131
- Highway MPGe: 107
- Annual Energy Cost: $650
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 122 grams/mile
- Battery Range: 252 miles
- Overview: the Toyota bZ4X was a new entrant to the cheapest electric vehicle list last year. The 2024 model’s MSRP increased just $15 over the prior model year. While currently not eligible for a Clean Vehicle tax credit in 2024 on new vehicle purchases, I have seen $7,500 lease bonus cash offers for the bZ4X. The bZ4X has strong EV specs with an MPGe of 119 and range of 252 miles. It looks good too.
9. Hyundai Ioniq 5
- Base Electric Model: Hyundai Ioniq 5 SE Standard Range RWD
- Base MSRP (before tax credits or other incentives): $42,985
- Clean Vehicle Tax Credit Eligibility: currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 110
- City MPGe: 127
- Highway MPGe: 94
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 130 grams/mile
- Battery Range: 220
- Overview: the 2024 Hyundai Ioniq 5 comes with just a $200 increase in MSRP versus the prior year, helping to keep it on the cheapest electric vehicles list. Neither this year or last year’s model were eligible for the Clean Vehicle tax credit on new purchases, due to the vehicle not being manufactured in the U.S., but I have seen $7,500 lease bonus cash offers available. The Ioniq 5 has won “world car of the year”, “world car design of the year”, and “world electric vehicle of the year” awards, but the 220 miles of range for the base model is not top end.
8. Kia Niro EV
- Base Electric Model: Kia Niro EV Wind
- Base MSRP (before tax credits or other incentives): $40,925
- Clean Vehicle Tax Credit Eligibility: currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 113
- City MPGe: 126
- Highway MPGe: 101
- Annual Energy Cost: $650
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 126 grams/mile
- Battery Range: 239 miles
- Overview: the 2024 Kia Niro EV comes with just a $50 increase in MSRP versus the prior year, helping to keep it on the cheapest EVs list. Neither this year or last year’s model were eligible for the Clean Vehicle tax credit on new purchases, due to the vehicle not being manufactured in the U.S., but I have seen $7,500 lease bonus cash offers available. The 2024 Kia Niro EV still isn’t as efficient as its sister model, the Hyundai Kona electric, and it still has a heftier price tag for new purchases. The base Niro EV is now called “Niro Wind”, while the higher priced “Wave” model comes with nicer features, but the same battery.
7. Tesla Model 3
- Base Electric Model: Tesla Model 3 RWD
- Base MSRP (before tax credits or other incentives): $40,630
- Clean Vehicle Tax Credit Eligibility: this particular version of the Model 3 is currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 132
- City MPGe: 138
- Highway MPGe: 126
- Annual Energy Cost: $550
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 109 grams/mile
- Battery Range: 272
- Overview: the Tesla Model 3 is a same-vehicle model year rollover from last year (which is common for Tesla). In a weird twist, the Tesla Model 3 “Performance” all-wheel drive model (pricier than the base model on this list) qualifies for a $7,500 federal tax credit in 2024, if you can find one, but the rear-wheel drive model does not. However, at the time of publish, there was a $7,500 lease bonus incentive on the RWD model.
6. Volkswagen ID.4
- Base Electric Model: Volkswagen ID.4 Standard
- Base MSRP (before tax credits or other incentives): $40,290
- Clean Vehicle Tax Credit Eligibility: eligible for a full $7,500 tax credit if purchased in 2024.
- Combined MPGe: 107
- City MPGe: 115
- Highway MPGe: 99
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 135 grams/mile
- Battery Range: 209
- Overview: MSRP shown here is for the 2023 VW ID.4, which has rolled over into 2024 and is still for sale. According to VW, a 2024 ID.4 will be released in the spring of 2024, and it will come with a new motor, revised interiors, and revised pricing. Last year’s ID.4 was eligible for a $7,500 Clean Vehicle tax credit through the end of last year, but does not appear to have made the cut for 2024, due to the stricter battery/component requirements that have gone into effect. I have, however, seen $7,500 lease bonus cash offers. It’s not yet clear if the refreshed 2024 model will be eligible for the federal EV credit.
5. Hyundai Kona Electric
- Base Electric Model: Hyundai Kona Electric
- Base MSRP (before tax credits or other incentives): $34,010
- Clean Vehicle Tax Credit Eligibility: currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 120
- City MPGe: 134
- Highway MPGe: 106
- Annual Energy Cost: $600
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 118 grams/mile
- Battery Range: 258 miles
- Overview: the 2024 Hyundai Kona EV comes with a nice $875 decrease in MSRP versus the prior year. Neither this year or last year’s model were eligible for the Clean Vehicle tax credit on new purchases, due to the vehicle not being manufactured outside of the United States. Oddly, I have not yet seen $7,500 lease bonus cash offers for the Kona EV as I have for the Ioniq 5 or the Kia Niro (a sister brand model). The Kona EV has a $6,915 lower MSRP than the Niro EV, so maybe Hyundai has taken this into account with the lower price?
4. MINI Cooper SE Electric
- Base Electric Model: MINI Cooper SE Electric Hardtop
- Base MSRP (before tax credits or other incentives): $31,895
- Clean Vehicle Tax Credit Eligibility: currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 110
- City MPGe: 119
- Highway MPGe: 100
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 132 grams/mile
- Battery Range: 114
- Overview: the the 2024 MINI Cooper SE Electric Hardtop comes with a nice $3,325 decrease in MSRP versus the prior year. Other than that, it’s all bad news for the MINI. Neither this year or last year’s model were eligible for the Clean Vehicle tax credit on new purchases, due to the vehicle not being manufactured outside of the United States. I do not currently see lease bonus cash offers either. And to top it all off, the MINI Cooper SE Electric Hardtop sports a mere 114 mile range. It’s hard to see the appeal here, other than the iconic looks.
3. Nissan Leaf
- Base Electric Model: Nissan LEAF S (40 kWh)
- Base MSRP (before tax credits or other incentives): $29,255
- Clean Vehicle Tax Credit Eligibility: currently not eligible for the Clean Vehicle tax credit for 2024 on new purchases, but you may be able to find up to $7,500 lease bonus cash offers.
- Combined MPGe: 111
- City MPGe: 123
- Highway MPGe: 99
- Annual Energy Cost: $600
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 131 grams/mile
- Battery Range: 149
- Overview: the 2024 Nissan Leaf comes with a $120 increase in MSRP versus the prior year and is the same vehicle. The Nissan Leaf was eligible for a partial ($3,750) Clean Vehicle tax credit last year, but is currently not eligible for 2024. I have also not seen any EV lease bonus cash offers yet. With a range of just 149 miles, the base Leaf is a laggard versus its competition, and the financial incentives are not there to take it seriously at the moment.
2. Chevrolet Bolt EUV
- Base Electric Model: Chevrolet Bolt EUV
- MSRP (before tax credits or other incentives): $28,795
- Clean Vehicle Tax Credit Eligibility: eligible for a full $7,500 tax credit if purchased in 2024.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $21,295
- Combined MPGe: 115
- City MPGe: 125
- Highway MPGe: 104
- Annual Energy Cost: $600
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 126 grams/mile
- Battery Range: 247 miles
- Overview: as noted above, the Chevy Bolt and Bolt EUV are last year model rollovers, but there are still some on the lots, and they are eligible for the full $7,500 tax credit in 2024. GM has halted production on the Bolts, but with their popularity having soared due to their pricing and their $7,500 tax credit eligibility, GM has decided to relaunch the Bolt EUV in 2025 on their new Ultium battery platform. Compared to the Bolt EUV, the Bolt EV actually (surprisingly) has more cargo space with 16.6 cubic feet of space behind the second row and 57 cubic feet with the rear seats folded down (versus 16.3 cubic feet and 56.9 cubic feet for the Bolt EUV). The Bolt EUV does offer more rear seat legroom than the Bolt.
1. Chevrolet Bolt EV
- Base Electric Model: Chevrolet Bolt EV
- Base MSRP (before tax credits or other incentives): $27,495
- Clean Vehicle Tax Credit Eligibility: eligible for a full $7,500 tax credit if purchased in 2024.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $19,995
- Combined MPGe: 120
- City MPGe: 131
- Highway MPGe: 109
- Annual Energy Cost: $650
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 121 grams/mile
- Battery Range: 259
- Overview: the Chevy Bolt, once again (temporarily), takes the top spot as the cheapest electric vehicle in 2024. As noted above, the Chevy Bolt and Bolt EUV are last year model rollovers, but there are still some on the lots, and they are eligible for the full $7,500 tax credit in 2024. GM has halted production on the Bolts, but with their popularity having soared due to their pricing and their $7,500 tax credit eligibility. While GM has decided to relaunch the Bolt EUV in 2025 on their new Ultium battery platform, it does not appear that it will also be relaunching the standard Bolt, so we should see a new #1 cheapest EV next year.