Low gas prices, incentives change math for electric cars
DETROIT - Drivers trying to calculate whether it's practical to own an electric car are facing a new math.
U.S. gas prices have fallen more than $1 per gallon over the last 12 months, to a national average of $2.06, according to AAA. That makes electric cars -- with their higher prices tags -- a tougher sell.
"Fuel savings are not top of mind to many consumers right now," says John Krafcik, president of the car shopping site TrueCar.com.
Automakers have responded by slashing thousands of dollars off the sticker price of electrics. Incentives averaged $4,159 per electric car last year, up 68 percent from 2013, according to Kelley Blue Book. The average for all vehicles was $2,791.
The discounting, combined with new vehicles such as the BMW i3, the electric Kia Soul and the Mercedes B Class, boosted sales of electrics 35 percent last year, according to Ward's AutoInfoBank. But the gains came before gas prices plunged in the second half.
So the discounting will likely continue. In January, the electric version of the Ford Focus was selling for an average of $25,168, or 16 percent lower than the sticker price of $29,995, according to TrueCar.
Here's how the numbers break down:
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