Affordable EVs: 7 Electric Cars You Can Get for Under $40,000

Like most emerging technologies, electric vehicles hit the market with high price tags, and were initially viewed as playthings for those who had $100,000+ to throw around on a car. But that’s no longer the case, as drivers look to save on gas and take steps to address the climate crisis. Several EVs in the $30,000 to $40,000 range are already out there now, and more are coming in 2023.

Sure, they’re not as cheap as, say, a $15,580 gas-powered Nissan Versa(Opens in a new window), but prices are steadily coming down, making EV ownership more attainable and fun for the average car buyer.

Maintenance costs on battery-powered cars are also generally lower than their gas-powered counterparts because they have no engine (no oil changes) or transmission, and fewer parts overall. One study(Opens in a new window) found EVs require 31% less maintenance, and when they do the bill is 22% less.

There are also state tax credit options available, plus the new federal $7,500 EV tax credit. State credit information should already be finalized, and we’ll know more about which cars apply to the 2023 federal credit by year’s end.

For now, here are the most noteworthy affordable EVs hitting the market next year and what you need to know to cash in on tax credits. Starting prices shown.

1. Chevrolet Bolt EV – $25,600

2023 Chevrolet Bolt EV
(Credit: Chevrolet)

Automakers don’t usually reduce prices over time, but Chevrolet (and others on this list) has done just that for the Bolt over the past few years. In 2021, it started at $37,495. It dropped (Opens in a new window)to $31,995 in 2022 while keeping its 259-mile range. The 2023 model(Opens in a new window) starts at $25,600 for the same range, a decrease of nearly $12,000 in two years. It’s available at dealers now.

2023 Bolt EV dashboard
(Credit: Chevrolet)

Chevy will also continue offering free level two charger home installation(Opens in a new window) on the 2023 model as it does on the 2022 version. While EVs from all brands come with an included level one charger, it takes 10 or more hours to power up as much as a level two charger provides in half that time, so this is a big upgrade for home charging. (For more, we have an explainer on EV charging levels.)

Even though this is the most economical option on the list, it still goes from 0-60mph in just over six seconds, and has a 10-inch touch screen with all the information you need about your vehicle as well as music and entertainment options.

2. Chevrolet Bolt EUV – $27,200

2023 Chevrolet Bolt EUV: Electric Utility Vehicle
(Credit: Chevrolet)

The Bolt EUV(Opens in a new window), or “electric utility vehicle,” is a step up from the Bolt EV in size and design. It’s like the SUV version with a slightly larger cabin and a hatchback. 

The EUV supports Chevy’s Super Cruise self-driving feature, which is only available on the Premier trim ($32,000). It costs an additional $2,200 to add to the vehicle (Tesla’s basic self-driving features cost $6,000), meaning you pay at least $34,200 for a Bolt EUV with Super Cruise.

It allows you to take your hands off the wheel as the car drives, though you need to remain in the driver’s seat and attentive; no napping. MotorBiscuit deemed it(Opens in a new window) a “multi-tasker’s dream.”

Chevy offers free home charger installation on the Bolt EUV, as with the Bolt EV.

2023 Bolt EUV dashboard
(Credit: Chevrolet)

On the downside, its range is 12 miles lower than the Bolt EV at 247 miles versus 259 miles, according to the official spec sheet(Opens in a new window). Its trunk is also slightly smaller at 16.3 cubic feet versus 16.6 feet on the Bolt EV. When it comes to the two Chevy Bolts, you’ll just have to go to a Chevy dealer and see which one you like best. Both versions are available now.

3. Nissan Leaf – $28,040

2023 Nissan Leaf SV Plus in Pearl White TriCoat.
(Credit: Nissan)

The 2023 Nissan Leaf(Opens in a new window) EV has also gotten cheaper over time (the 2021 model started at $31,670). Compared to the Chevy Bolts, it offers a larger trunk at 23.6 cubic feet. It also comes with self-driving features and a $100 charging credit(Opens in a new window) at EvGo stations.

The 2023 Nissan Leaf EV charges through a flap on the front, not the side like many other EVs.
(Credit: Nissan)

The Nissan Leaf was one of the first electric vehicles to hit the market in 2021, and it has a respectable track record of performance. Earlier this year, it topped the Kelley Blue Book(Opens in a new window) 5-Year Lowest Cost to Own list for EVs.

The Leaf’s disadvantage is a slightly lower range than both the Bolts, at 212 miles. It’s currently available for purchase.

4. Chevrolet Equinox EV – Around $30,000 (TBD)

All new Chevrolet Equinox EV.
(Credit: Chevrolet)

While most cars on this list have been around for at least a few years, the Chevy Equinox EV is a new entrant to the world of affordable EVs. It will hit dealers in fall 2023, but the car is officially(Opens in a new window) a 2024 model. It has the highest range on this list at 300 miles.

A standard front-wheel-drive system will produce 210 horsepower and 242 lb-ft of torque. It will offer 11.5 kW standard Level 2 (AC) charging for 34 miles of range per hour of charging, and support standard DC fast-charging up to 150 kW to add about 70 miles of range in 10 minutes.

Inside, it has a roomy SUV-style cabin and large infotainment display. Buyers can choose from 10 different exterior colors.

5. Hyundai Kona Electric – $33,550

2022 Hyundai Kona Electric.
(Credit: Hyundai)

With a solid 258-mile range (one mile less than the Bolt EV), the Hyundai Kona Electric SUV has slightly less rear legroom than the Bolt EUV (33.4 vs. 39.2 inches) but a larger trunk.

Hyundai hasn’t revealed interior photos of the 2023 model yet, which hasn’t hit the market yet, but InsideEVs got a brief glimpse(Opens in a new window) when someone spotted it out on a test drive. “We expect the 2023 Hyundai Kona Electric to have radically different styling compared to the 2022 model, with a look possibly inspired by the 2022 Hyundai Tucson SUV,” according to the site, which speculated the 2023 model will feature a dual-screen array like the Ioniq 5.

Keep an eye on this one in the next few months to snag the first spot in line when Hyundai announces its availability and/or opens reservations for 2023.

6. Mini Cooper SE – $34,225

The Mini Cooper SE dashboard is the most creative on this list.
(Credit: Mini Cooper)

The Mini Cooper EV(Opens in a new window) is high on design and fun, but it has a relatively low range at 114 miles. Still, it’s a funky two-door EV to zip around town in, and it goes from zero to 60mph in seven seconds. It offers safety alerts, chic interior lighting, and a 8.5-inch touch screen, which is slightly smaller than others on this list but the circular perimeter is quite striking. You can reserve one now for a $250 deposit, with deliveries beginning in early 2023.

7. Volkswagen ID.4 – $37,495

(Credit: Volkswagen)

The 2023 Volkswagen ID.4 is cheaper than the 2022 model, which costs $41,230. Range depends on the model you get. The cheapest version has a smaller battery with about 208 miles of range, while the Pro version (starting at $42,495) has a 275-mile range.

The ID.4 has a large, 12-inch interior screen. Self-driving features include lane assist and automatic braking. The interior cabin is large and quieter than some other vehicles while driving, Car and Driver reports(Opens in a new window), as is common for any higher-end vehicle.

(Credit: Volkswagen)

Volkswagen moved production of the 2023 ID.4 to Chattanooga, Tennessee, presumably to qualify the vehicle for the federal tax credit, which requires cars to be manufactured in the US. The company is currently taking reservations(Opens in a new window) for the ID.4 with a $100 deposit.

If the higher-priced ID.4 Pro model appeals to you, check out some competitors like the 2023 Kia EV6(Opens in a new window) ($43,000) or a 2023 Tesla Model 3(Opens in a new window) (expected to be around $45,000).

How Do EV Tax Credits Work?

It’s essential to check the state and federal tax credits available for your vehicle before purchasing, both of which can lower the price tag significantly.

State credits are relatively straightforward, such as New York’s $2,000 rebate program. The Department of Energy maintains a list of incentives by state(Opens in a new window).

To find the rebates in your state, click on your state on the map > filter for EV fuel type > click on relevant rebate information.
(Credit: DOE)

State credits can be combined with the $7,500 federal credit, which was passed as part of the Inflation Reduction Act (August 2022), and they are a bit more complex.

EV Tax Credit Eligibility for 2022

Here are the terms to achieve the full $7,500 tax credit if you buy a car between now and Dec. 31, 2022.

• The car’s final assembly must occur in North America. Here is a list of qualified vehicles(Opens in a new window).

• The catch: The car company must have sold less than 200,000 of the model in the calendar year, per a government cap that goes away in 2023. So far, the Chevy Bolt EV, Hummer, and all Teslas have hit the cap. If you buy one of these vehicles right now, it will not qualify. Even two 2023 models, the Bolt EV and Cadillac Lyriq, have already hit the quota from early orders. If you want one of these cars and the tax credit, wait until Jan. 1. 

2023 Changes to EV Tax Credit Eligibility

Once the clock strikes Jan. 1, 2023, the eligibility requirements change(Opens in a new window) significantly. At this point, there are only rumors of vehicles that will qualify for the credit in 2023, largely because of the strict battery requirements. Here are the full list of 2023 requirements:

• North American assembly still applies.

• Used cars become eligible for a $4,000 credit or 30% of the sale price, whichever is lower, if they are more than 2 years old and less than $25,000.

• For new cars, the 200,000 cap goes away.

• The credit will not apply to luxury vehicles. The EV must be $80,000 or less for vans, SUVs and pickup trucks (sorry Hummer and Rivian, you’re out), and $55,000 or less for other passenger vehicles, sedans (you’re out, too, Tesla Model Y and Lucid Air). 

• The credit will not apply to wealthy households. You must make less than $150,000 for single filers, $225,000 for head of household, and $300,000 if filing jointly to be eligible.

• There are strict battery requirements for automakers as a response to foreign markets, particularly Asia, dominating the lithium and battery industry, which will be key to EV production in the coming years.

  You shouldn’t need to keep track of these details once automakers designate a vehicle “eligible” or “not eligible,” but here’s how it will work:

  • Vehicles will qualify for the first $3,750 portion of the full $7,500 credit if 40% of the minerals inside the battery, such as cobalt or lithium, are mined and processed in the US or a free-trade partner in the US (like Canada or Mexico).

  • The car receives the second $3,750 half of the credit if 50% of the battery itself is assembled in North America. 

The mineral and battery requirements are the biggest unknowns that will determine which vehicles qualify for the tax credit in 2023. As The Wall Street Journal reports(Opens in a new window), the Treasury Department needs to offer regulatory guidance for the credits by Dec. 31, and it “could help make the new requirements easier for automakers to meet, industry and advocacy groups said.”

Section 30D tax credit requirements between 2023-2032.
(Credit: ElectrificationCoalition.org)

Recommendations–For Now

If you don’t need an EV right away, we’d suggest finding a few cars you like and checking back in a month or two to see if any brands have announced new models for 2023, and if they will qualify for the credit in 2023. Once Jan. 1 hits, you’re ready to pull the trigger. 

But if there’s one car you really want regardless of the tax credit, you have the money, and you need it ASAP, you may as well buy it now (or reserve it, depending on the car) to get ahead of some potentially long delivery times.