Hyundai Just Made EVs and Hybrids More Expensive

Curbing The Effects

Even with a ceasefire announcement and agreement between the United States and Iran, gas prices remain high, and the ongoing volatility in the “peace talks” keeps oil prices uncertain for the time being.

All over the world, we’re seeing car owners feel the pain at the pump, and most are jumping ship from conventional internal combustion cars to electrified vehicles like hybrids and EVs. A trend like this is hard to ignore, and Hyundai has just made a move reflecting the times.

Premium on EVs and Hybrids

CarsDirect reports that Hyundai America has just increased how much American buyers will spend on its electrified models. Based on their internal analysis and report, the South Korean automaker raised interest rates this month on hybrids and EVs. In some parts of the nation, discounts on the Ioniq 5 EV have also dropped by as much as 40%.

On average, the entire range of Hyundai’s electrified lineup has increased by 1%. The 2026 Santa Fe and Tucson, which used to top the hybrid financing deals, have increased interest from 0% for a 60-month term to 0.99%. The Elantra and Sonata sedans have also gone up, from 0.99% over 60-months to 1.99%.

Conversely, the gas models have continued with the same interest rates. The gas-powered versions of the Sonata and Elantra are still listed at 0.99% APR, and the gas Tucson is still a great deal at 0% APR, which enables it to undercut almost all competitors in the segment. What’s interesting is that, in the case of the Santa Fe, the interest rate rose to 0.99% for both the hybrid and gas models.

Compounding Cost

Looking at a 1% interest rate hike might not seem like much now, but based on the calculations, owners will feel the higher price over time. A 5-year loan on a Tucson is almost $900 more than just last month’s rate. In the case of the Ioniq 5, the effect is felt by buyers rather than lessees. What used to be a $5,000 dollar financing bonus is now only $3,000, a stark 40% reduction.

Despite higher interest rates and new deals on the Ioniq 5, Hyundai remains very competitive on offers compared to the competition. In the case of the Elantra and Sonata Hybrids, the 6-year 1.99% interest rate is much lower than the Corolla Hybrid and Camry, which have an interest rate of 4.99% over the same period.