Car expert issues urgent warning as EVs are touted as must-buy amid wave of bargains and soaring gas prices
Electric cars have suddenly never looked cheaper.
Prices are being slashed by thousands of dollars - in some cases, cutting costs by more than the old $7,500 tax credit ever did - just as soaring gas prices make ditching the pump more appealing than ever.
Tesla has $1,400 off the Model 3 while rivals push far deeper incentives. Kia, Toyota, and Hyundai are dangling deals worth thousands - reaching as high as $18,300 in lease support and up to $10,000 in financing incentives - to attract buyers.
For buyers, it looks like the perfect moment to make the switch.
But one industry expert says that’s exactly why they should be cautious. These 'bargains' could end up costing buyers far more than they expect.
Tomislav Mikula, 33, founded Delivrd, a car-buying service that negotiates deals on behalf of consumers.
And right now, Mikula says, the value simply isn't there.
'These cars are simply overpriced - and nobody's buying them,' he told the Daily Mail. 'The only way to move them is with heavy discounts.'
Tomislav Mikula, 33, founded Delivrd, a car-buying service that negotiates deals on behalf of consumers
Mikula cautioned wariness, saying these 'bargains' could end up costing buyers far more than they expect
Once the $7,500 federal tax credit was axed in December - a reduction in the amount owed to the government for EV buyers - registrations dropped 41 percent in January compared to a year earlier, according to data from S&P Global Mobility.
Mikula urged Americans to consider why EVs are proving so difficult to sell in the first place.
Many are overpriced and suffer from steep depreciation, wiping out value within just a few years.
That, he warned, is often reflected in bloated inventories. 'If a company is sitting on a lot of inventory, that's actually a red flag,' Mikula said.
Excess supply, he explained, typically signals weak demand - forcing manufacturers to roll out deeper discounts and stronger incentives to move cars.
'That's typically when incentives show up in the first place,' he added.
It also helps explain why some brands rarely need to offer deals at all.
'That's why you don't see incentives on brands like Lexus or Toyota - they're selling,' he said. 'The ones offering big discounts are usually the ones struggling to move inventory.'
Mikula explained that excess supply typically signals weak demand - forcing manufacturers to roll out deeper discounts and stronger incentives to move cars.
Mikula said Chevy was an example of a manufacturer pushing out EVs too quickly to fall in line with infustry trends and are now paying the price by struggling to sell their supply
And unless customers are in the market for a luxury EV, such as BMW and Lucid, quality will be a hot topic as some automakers rushed electric models to market amid political pressure and aggressive government incentives to go green.
'Chevy is a good example of that,' Mikula said. 'They pushed EVs out quickly, and now they're struggling to sell them.'
He explained the market is a 'mixed bag' in terms of quality. 'You have to do your research. Not every EV is built the same, and not every one is worth the price.'
Data suggests charging EVs at home can be half as expensive as filling the car up at the pump, and easier to maintain at the mechanic.
But the seemingly irresistible discounts may not be the bargain they appear.
'When it comes to manufacturers and incentives like the tax credit, there are really two different camps,' Mikula said.
'First, a lot of manufacturers pre-bought inventory when that tax credit was still around. Now they're applying those benefits to leases, because leasing still allows them to structure deals in a way that mimics that credit.
'The second group - and this is the majority now - is that these cars are simply overpriced. Nobody's buying them at those prices, so the only way to move that inventory is to discount them heavily.'
Mikula explained the market is a 'mixed bag' in terms of quality
Now, stuck with a surplus of inventory, manufacturers are scrambling to move cars - offering aggressive incentives like $1,400 off the Tesla Model 3
Electric cars have suddenly never looked cheaper as p rices are being slashed by thousands of dollars - in some cases, wiping out more than the old $7,500 tax credit ever did
Dealerships, meanwhile, are largely holding the line - waiting for manufacturers to step in with incentives rather than cutting prices themselves, since they aren't responsible for production or pricing.
As a result, Mikula says buyers should be cautious. EVs without strong incentives are likely overpriced and not worth purchasing.
As he put it: 'If you're not seeing strong incentives on an EV, I wouldn't buy it.'
Instead of an EV, Mikula said customers will get the best bang for their buck with a hybrid model.
'Hybrids are absolutely worth it right now - not plug-in hybrids, but standard hybrids.
'That's where the technology has really improved to the point where, in many cases, it's better than traditional gas cars.'
