All the ways you can save money with an electric vehicle


Lafayette - Circa September 2017: Tesla Supercharger Station.

Jonathan Weiss / Shutterstock.com

Zipping around in a whisper-quiet electric car, emitting nothing out of the tailpipe (you don’t even have one) and only stopping at home to fill up while you sleep – there are plenty of reasons to enjoy electric life these days. Your city may even grant you special access to the HOV lane

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It might not be possible to save money the primary motivation that comes to mind for going electric. But the new Clean Vehicle Credit (part of the Inflation Reduction Act) has boosted the cost savings of owning an electric vehicle, and that’s just the beginning. Read on for all the EV owner’s pockets where to find loose change   Â

Federal Tax Credits

A new round of EV tax credits of up to $7,500 will be available in 2023, thanks to federal inflation-reduction legislation — though not all EVs are eligible. The law states that the vehicle must be manufactured in North America, and additional battery component manufacturing requirements, which are yet to be determined, will take effect in March. To forestall further restrictions, it may be best to buy an electric vehicle earlier in the year

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Other exceptions are MSRP price caps, depending on vehicle type – $55,000 for cars and $80,000 for trucks, vans and SUVs. Buyers in higher income brackets — $300,000 for married couples or $150,000 for individuals — also don’t qualify for the loans

You can view the IRS’s current list of qualified manufacturers here.O

For the first time, used electric vehicles now also qualify for tax credits—up to $4,000 for qualifying vehicles. Leased vehicles also apply, but credit is given to the dealer, who may or may not pass the savings on to the buyer – a bit of knowledge that could come in handy when negotiating a lease price.

In addition to federal tax credits, many states also offer additional credits and rebates, often between $2,000 and $4,000, that can lower the sticker price even further. Some local utilities also have their own incentives, so be sure to check with your local provider.

charging stations

To avoid the hassle and higher fees of public charging stations, it’s worth investing in a home charging station. What you pay for the device can vary quite a bit depending on factors like the voltage and the charging speed you want

A Level 1 charger, available on Amazon for less than $200, will plug into a regular 120V outlet, but will only charge at 2-5 mph. Level 2 chargers, which charge at a faster speed of 10 to 80 km/h, require a 240 V socket. They typically cost between $300 and $1,000 and should be installed by an electrician, which can add another $300 to $1,000 to your cost.

But fear not – there are many ways to reduce the price of a Level 2 charger. The recently expired federal tax credit for EV chargers was extended for the next 10 years by the Inflation Reduction Act, offering taxpayers up to a $1,000 rebate on their hardware and installation. You can combine these savings with other discounts offered by states, local utilities, and vehicle manufacturers that could lower your price by another few hundred dollars.

Electricity vs Gas

There’s nothing like the liberated feeling of driving past a gas station and not caring what the price tag says. Even if you pay more to drive an electric vehicle from the dealer’s lot than you would for a conventional car, you’ll likely recoup your cost in fuel savings. With so many new models coming out over the next few years, from the budget-friendly Kias to the first new DeLorean in 40 years, there is something for every car buyer’s price range.

How much you save depends on a number of factors, including where you live, your utility’s electricity rates, and ever-changing gas prices. But EV drivers generally pay about half the fuel cost of drivers of similar gasoline vehicles, according to the US Department of Energy. Based on national averages, EV drivers pay $1.22 to travel the same distance as a conventional car on a gallon of gas, which typically costs between $1.50 and more than $5

EV charging prices are also much more predictable. While gas prices can fluctuate widely and are susceptible to seasonal changes, geopolitics, and other market fluctuations, electricity prices are fairly stable by comparison. This makes it easier to plan and budget for your commute and travel expenses over the longer term

You can compare fuel costs when driving different cars side by side fueleconomy.gov.O

charge at night

Some local utilities are also offering discounts or lower rates to encourage EV owners to charge off-peak when there is less demand on the grid.

In Oregon, for example, in addition to a $2,500 federally sponsored purchase discount, residents are entitled to a $500 rebate on a Tier 2 charging station plus a reduction of 22 cents per kWh (kilowatt hour) for peak energy hours to just 4 cents per kWh for off-peak consumption. New Yorkers can get up to $1,000 annually from utility company Con Edison for off-peak charging and installing a device that allows them to monitor their charging and driving data.

You can see what your state offers here.

maintenance

Forget all those oil changes. EVs have no oil or transmission fluid, and generally fewer moving parts, so your regular maintenance schedule will typically only require tire changes, system inspections, and periodic replacement of cabin filters, brakes, and tires. (Although pauses may be longer on newer EV models, thanks regenerative braking technology).

According to a study by Consumer Reports, it costs about half as much to maintain an electric vehicle compared to a conventional car over the life of the vehicle

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Hey, I am Sakib Hossain Sojib, an entrepreneur known as an SEO Specialist, Digital Marketer, Blogger, and Content Creator. I have a team of researchers who guide and review products for our audience to help them by providing valuable information to help our audience makes the best decisions for their needs. I love to take care of my cars. So, I like and enjoy car maintenance and automotive research. The provided content is based on my learning, research, and understanding of the topic and its concept. Our extensive experience in the industry allows us to offer unique insights and perspectives on the latest trends and products. We aim to educate and empower our readers by providing them with the knowledge they need to make informed decisions about their needs.

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