Nissan's New All-Electric Car is Cheaper Than a Prius

For alternative means of transport to make a dent in America's hulking contribution to climate change, it's got to be as cheap as possible. Only when the economics of $5 a gallon gasoline collides with the falling price of electrified transport will the obesity epidemic among America's vehicles come to an end.

Just in time for a new spike in oil prices, Nissan has unveiled the all-electric Leaf. If you live in California or Georgia, you can pick one up for the extraordinary price of $20,280.

Those of you who live outside those states will pay more — $25,280 — because your state doesn't offer a $5000 tax credit on the vehicle. (Oregon offers $1,500.) The real price of the Leaf is the slightly eye-popping (given its size) $32,780, which is knocked down for all residents of the U.S. by a $7,500 federal tax credit.

Even at those higher prices, the Leaf is significantly cheaper than competing all-electric and plug in hybrid vehicles. So much cheaper, in fact, that it forced Mitsubishi to knock almost $7,000 off its competing MiEV electric car, which hasn't even been released yet, and it will doubtless also put downward pressure on the price of the forthcoming Chevrolet Volt.

Even at this price, the sour world economy means that Americans are holding on to used cars longer than ever. As someone who recently bought one, I encountered first hand the extraordinary phenomenon that in 2009, for once the price of many used cars went up instead of depreciating.

This means it will take longer than ever for America's — and the world's — fleet of conventional vehicles to "turn over" and be completely replaced by all electric and partly electric models. With its enormous buying power, the federal government is doing its part to hasten this turnover.

Photo credit: razvan orendovici