Electric vehicles are rapidly converging with gasoline power in the overall market.
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If you follow the electric vehicle market anywhere in the world today, it’s pretty much bad news these days. That’s especially true in America, where slowing production in layoffs at majors like Tesla, Ford and GM are the inevitable result of dramatically softening sales.
But there is a dirty secret to the automobile industry in America: MSRP is key, but not in the way most people think. People don’t buy price, they buy monthlies, and with two decades of insanely low interest rates, combined with ever longer or owing terms and that people who really couldn’t afford a $70,000 automobile, were buying them. Not anymore.
Current interest rates are not high, they are at generational norms, but they do mean that monthly payments that could be $1100 or $1200, for years. Sanity is returning to the automotive market, and demand is for lower-priced vehicles. Unfortunately, with current technology, electric vehicles simply part cheap enough.
