• Focus Electric sees $4,000 price cut for 2014
  • New starting price will be around $36,000 with shipping
  • 2014 Focus Electric will arrive at dealers in a few weeks

The price of a 2014 Ford Focus Electric will be cut substantially. Ford recently announced it's cutting $4,000 out of the fully electric hatchback's base price for the new model year.

The reduced price means the 2014 Focus Electric will start around $36,000 with shipping -- a steep decline from last year's $40,000 sticker price. That should spur sales of the EV, which has found trouble gaining footing against better-known rivals such as the Chevrolet Volt and Nissan Leaf.

Despite the price drop, the Leaf -- arguably the Focus's biggest EV competitor -- still vastly undercuts the Focus Electric on price. The Leaf starts at just under $30,000 thanks to a new-for-2013 base trim level that helped drive the hatchback's sales price down.

Still, the Focus Electric's new base price makes it less expensive than the Chevrolet Volt. The Volt starts around $40,000 with shipping, though Chevrolet usually offers the plug-in hybrid with incentives that lower its transaction price.

Regardless of your electric vehicle or plug-in hybrid of choice, you'll get even more money off thanks to federal tax credits. Today's government tax credit for EVs is a whopping $7,500 -- and the price reduction can be even more once state tax credits are considered, as well.

Shoppers interested in an even better deal might want to consider leasing. Thanks to those tax breaks and projected high resale values, many automakers are offering great lease deals on EV and plug-in hybrid models. That includes the Focus Electric, which is available for just $229 per month after $2,028 down at lease signing. We expect to see that number fall even more once the model's base price is cut for 2014.

The Ford Focus Electric came out for the 2012 model year. Like the Leaf -- and unlike the Volt -- it runs purely on electricity, with no "range-extending" gasoline engine. The Focus Electric is only offered as a 5-door hatchback. Ford says the 2014 model will be on sale in the next few weeks.

What it means to you: Today's EV shoppers are in luck, as many automakers are lowering prices to boost sales.

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Doug DeMuro has a wide range of automotive industry experience, from work at a Ferrari dealership to a manager for Porsche North America. A lifelong car enthusiast, Doug's eclectic vehicle purchases include a Porsche 911 Turbo, an E63 AMG wagon, an old Range Rover and a Mercedes Benz G-wagen.

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