Electric Cars Under $40K: A Comprehensive Guide

In today’s market, where prices seem to be on the rise, finding an affordable electric vehicle (EV) can be a challenge. However, there are still some fantastic deals available for new EVs that offer great range, impressive technology, and advanced safety features. To simplify your search, we have compiled a comprehensive list of the most budget-friendly electric cars priced under $40K for the year 2023.

It’s worth noting that the roster has seen some changes from last year. A few models had to be removed due to higher starting prices. The Ford Mustang Mach-E became more expensive, and the Hyundai Ioniq EV was discontinued in favor of the Hyundai Ioniq 5 EV, which boasts an increased range, a futuristic crossover design, and a higher price tag.

It’s worth noting the significance of the updated EV tax credit regulations, as certain 2023 models now meet the criteria for tax credits that were previously unavailable. These credits have the potential to considerably lower the costs associated with the finest and most economical electric vehicles, including plug-in hybrid (PHEV) models. Although pre-owned EVs are eligible as well, the tax credits for leasing options are more restricted.

Moreover, there are slightly pricier vehicles that still qualify for tax credits under the new zero-emissions, clean vehicle rules. Luxury brands like BMW and others offer feature-rich EVs eligible for a $7,500 credit. Additionally, several manufacturers have expressed their intent to produce EVs that will be eligible for federal tax credits, including Toyota, Subaru, Mercedes-Benz, Mazda, Kia, Hyundai, Mitsubishi, and more.


Without further ado, here are the electric cars priced under $40K for 2023:

Let’s delve into each of these models:

Chevrolet Bolt EV

Chevrolet has confirmed the discontinuation of the Bolt EV and Bolt EUV. Nevertheless, these two electric cars continue to provide excellent value. The Bolt EV, a subcompact EV, offers solid specifications, an affordable MSRP, and an impressive range. General Motors’ efforts to enhance the Bolt’s battery pack and extend its warranty ensure a top-tier vehicle in its segment at a value that appeals to all. The front wheels of the Bolt EV receive 200 horsepower and 266 pound-feet of torque, courtesy of its 66-kWh battery pack. Starting at around $25,500, the Bolt EV is eligible for tax credits under the new rules, making it one of the most affordable options available.

Chevrolet Bolt EUV

As an expansion of the Bolt hatchback, Chevrolet introduced the Bolt EUV, a compact SUV that offers similar utility and features. While the Bolt EUV is also slated for discontinuation, this electric crossover presents a compelling deal for now. It shares the same 65-kWh battery and electric motor as its smaller sibling, generating 200 horsepower and 266 pound-feet of torque. With a range of 247 miles per charge, the Bolt EUV starts at just over $27,000 and remains eligible for federal tax credits in 2023.


Hyundai Kona Electric

Combining impressive driving range and quick acceleration with a distinctive design, the Hyundai Kona Electric offers a seamless transition to electric driving. Hyundai’s user-friendly touchscreen infotainment systems and tech further enhance the overall experience. The Kona Electric boasts a 64-kWh battery pack and a powerful 150-kW electric motor, propelling it to provide 201 horsepower and 291 pound-feet of torque to its front wheels. It can travel up to 258 miles between charges and supports rapid DC fast charging. While Hyundai does not currently have any models eligible for EV tax credits, they have expressed their intention to submit models for consideration.

Kia Niro EV

The Kia Niro EV, a relatively recent addition to Kia’s lineup, impresses with its performance and value. Sharing a powertrain with its corporate cousin, the Hyundai Kona, the Niro EV boasts 201 horsepower and 291 pound-feet of torque. It outperforms its gas and PHEV counterparts in terms of acceleration and handling. The Niro electric cars, priced at just under $40K, offers an impressive range of up to 239 miles. Additionally, it can replenish 80% of its battery capacity in a mere 75 minutes when utilizing a Level 3 fast charger. While Kia does not currently have any models eligible for EV tax credits, they have expressed their intention to submit models for consideration.

MINI Cooper SE

Reflecting MINI’s fun-loving personality, the Cooper SE electric hardtop offers an engaging driving experience, ample cargo space, and a stylish interior. Despite a lower range compared to its rivals, the Cooper SE’s price is quite attractive. Delivering a spirited performance, the Cooper SE packs a punch with 181 horsepower and 199 pound-feet of torque. Charging times vary, but a full charge on a 240-volt charger takes around eight hours. With government incentives, the MINI Cooper SE’s $34,225 price tag becomes even more appealing.

Nissan LEAF

The Nissan LEAF, the pioneer of mass-market electric cars, continues to be a strong contender due to its affordability. The standard LEAF model features a 40-kWh battery, offering 147 horsepower and 236 pound-feet of torque. The LEAF Plus version comes with two electric motors and a 62-kWh battery, providing 214 horsepower and 250 pound-feet of torque. Standard LEAF models offer an EPA-estimated range of 149 miles, while LEAF Plus models offer up to 226 miles. With a starting price of $28,040, the LEAF remains an accessible option. Certain LEAF models are eligible for tax credits under the new rules implemented on January 1.

Volkswagen ID.4

The Volkswagen ID.4 has introduced a new trim level for 2023, featuring a lower price tag, slightly reduced power, and range. Boasting a sleek design, spacious interior, and a captivating 10-inch touchscreen infotainment system, the ID.4 offers both style and comfort. The ID.4 Standard electric cars, priced under $40K, incorporates a smaller 62-kWh battery pack, and rear-wheel drive, and provides a driving range of 209 miles. Higher trims offer extended ranges, up to 275 miles. Notably, all ID.4 models feature fast charging capabilities, allowing for 80% battery charge in just 38 minutes.

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