In years past, the future of electric cars seemed ephemeral and out of reach for the common man. With today’s rapid development and owning an electric car is no longer a far-fetched idea, it is a viable option for many people considering purchasing a vehicle. Today’s consumers are also paying 60 percent more for gas compared to the same period last year and are facing sky-high gasoline costs. This has led to more interest in electric cars as people look for new ways to deal with fuel costs. Amid incredible fuel costs and incentives to support electric car purchases more than ever, now might be a good time to think about how you can save money by investing in an electric car.
Key electric car facts and statistics
- In June 2022, 65,533 hybrid electric vehicles (18,482 cars and 47,051 cars) were sold in the United States. (Kelly Blue Book June 2022)
- In 2021, California will lead the way with the highest number of electric car registrations, followed by Florida, then Texas. (U.S. Department of Energy, Electric Vehicle Registrations by State.)
- International and US sales of electric vehicles are on the rise. In the year By 2022, nearly one in 12 vehicles sold worldwide will be an electric vehicle. (S&P Global)
- It is estimated that there are currently 2.2 million electric vehicles or hybrids on the road in the US. (S&P Global)
- By 2030, the electric vehicle market is expected to grow to 32 million vehicles worldwide. (S&P Global)
- Electric vehicle batteries now average about $150 per kilowatt, down from about $600 per kilowatt in 2014. (International Energy Agency))
- In 2020, the 50 most populous metropolitan areas will account for 77% of new electric vehicle registrations, indicating that most of the growth of EVs will be in cities. (International Clean Transportation Council)
- Approximately 96% of EV owners say they will buy or lease another. (aaa)
- 57% of consumers avoid EVs first because they worry about not paying. In fact, only about 5% of owners default on payments. (aaa)
How do electric cars work?
Normally, vehicles use a gasoline-based internal combustion engine to run and function properly. An electric vehicle uses electricity, which is stored in the batteries inside the vehicle. Battery packs provide the power source for the electric motor. When you’re on the road, you can charge the battery packs for your electric vehicle by plugging it into a standard home socket or charging station.
Not all electric vehicles work properly. Battery electric vehicles, often called EVs or electric cars, derive their energy solely from charging battery packs. Hybrid electric vehicles, or HEVs, use a battery pack (which requires electrical charging) and an internal combustion engine that relies on gasoline. HEV models don’t plug in to charge the way an electric vehicle does. If you want a plug-in hybrid model, you should buy a plug-in hybrid vehicle or PHEV.
Electric and gas vehicle costs
According to Kelly Blue Book data published in June 2022, the average price of an electric vehicle is $66,997. This represents a 13.7 percent increase compared to June 2021, according to the same data. The average price of a hybrid vehicle in June 2022 is $39,040. Compared to June 2021, it showed an increase of 27.6 percent.
The price of a new EV or HEV has definitely increased over the past 12 months, with the price of all new vehicles up 11.4% over the 12-month period, according to the Bureau of Labor Statistics. Used vehicles are also up 7.1% over the past 12 months. Entry-level luxury cars, luxury cars and SUVs/crossovers, and minivans have all seen double-digit price increases over the past 12 months. It showed an average price increase of 11.3 percent compared to June 2021.
Long-term benefits of owning an electric car
So what are the benefits of owning an electric car? Saving money on gas, maintenance and insurance costs stand out as the main benefits for EV owners.
Save on gas
The average price of gas per gallon is $4.21 for regular, according to the latest data from AAA. Most drivers are sadly aware of how the price of gasoline has skyrocketed this past year (currently around 60 percent). With electric cars, electricity is the main source of energy, and even with the increase in electricity prices (currently 13% compared to June 2021), there could be more savings for electric vehicle owners.
To get an accurate estimate of how much electricity it costs to charge an EV, you can use a calculator like this one provided by the Alternative Fuels Information Center to compare charging and charging savings based on where you live and the vehicles. You drive.
Save on maintenance
Maintenance costs associated with electric vehicles are reduced due to fewer parts and oil consumption. According to a report published by Consumer Reports, electric vehicle owners can save up to $4,600 in maintenance costs compared to traditional gasoline vehicles. With an electric vehicle, there are no more tune-ups and oil changes like there are with gasoline-powered vehicles, and you don’t have to worry about the combustion engine breaking down.
Keep insurance rates reasonable
In general, car insurance rates for electric cars will be slightly higher than for gasoline-powered cars. However, as with other insurance policies, shopping around and taking advantage of discounts can be beneficial to keep costs down. Safety equipment options like automation or lane assist may qualify for additional discounts with insurance providers. In general, the introduction of safety features such as lane assist or collision avoidance by many drivers on the road can reduce the number of accidents due to human error. As electric vehicles become more common, the cost of parts for the cars may also drop, which could lead to lower average car insurance rates.
The benefits of sustainability
Owning an electric vehicle can significantly reduce your carbon footprint. The benefits of sustainability are many, including:
- Electric vehicles produce no tailpipe emissions.
- With more electric vehicles on the road, overall air quality is better for everyone.
- EV companies typically use environmentally friendly materials in the production process.
- Even when factoring in the manufacturing process, lifetime greenhouse gas emissions with an electric vehicle are lower than the average for a gasoline-powered car.
- Due to better technology, the possibility of reusing and recycling batteries for electric vehicles is growing.
States that offer electric car incentives
Buying a new electric car can be very expensive. However, there are a number of federal, state and local incentives that can offset some of these costs. These electric car incentives encourage buyers to purchase more climate-friendly alternatives to gas-powered vehicles. It’s important to check what incentives are available in your state and through your local utility companies, but here are a few programs currently available:
- Tax Credits: The US government offers an electric vehicle tax credit of up to $7,500 for the purchase of certain electric vehicles. The actual tax credit varies by brand, and it’s important to note that Tesla and GM-branded electric cars are not eligible for this tax credit program.
- State incentives. Currently, 45 states and the District of Columbia offer some level of incentive to purchase an electric vehicle. In addition to state programs, local incentives may also be available with your city government, such as those in San Francisco, California and Buffalo, New York.
- Utility incentives: Utility companies can offer their own incentives to electric vehicle owners. Check with your utility company to see if your vehicle qualifies.
- HOV access Some cities, such as San Jose, California and Atlanta, Georgia, offer HOV lanes to anyone who drives an electric vehicle. These lanes are normally restricted to vehicles with two or more passengers, but this requirement is not in place for EV drivers.
- Payment incentives: Some states offer toll reduction incentives for drivers of electric vehicles.
Charging stations in the US
The federal government has pledged to increase the number of charging stations in the U.S. The more stations available, the more confident electric vehicle owners can feel when they’re on the road. You can find a list of current charging stations through the Alternative Fuel Data Center.
Top 10 states for EV charging stations
| 1 | California | 14,422 |
| 2 | new york | 3,076 |
| 3 | Florida | 2,610 |
| 4 | Texas | 2,329 |
| 5 | Massachusetts | 2,258 |
| 6 | Washington | 1,657 |
| 7 | Colorado | 1,629 |
| 8 | Georgia | 1,531 |
| 9 | Maryland | 1,242 |
| 10 | Pennsylvania | 1,186 |
Tips for buying an electric car
If buying an electric car is in your future, there are a few steps you can take to make ownership more of a reality before you buy.
- Check how many charging stations are in your area. Use the interactive map through the Alternative Fuels Information Center to find the nearest charging station to your home, work or commute.
- Explore available EV incentives. Several resources are available online, including this database maintained by the Alternative Fuels Data Center, which lists federal and state incentives for purchasing an electric vehicle (or PHEV or HEV). You can also check with your local utility company for incentives.
- After identifying possible models, be sure to check the vehicle’s operating range. It will be useful to calculate how much your payment will take you and make sure it is enough for your daily commute and other weekly obligations.
- Switch outlets at home to facilitate charging. You can charge an electric vehicle simply by plugging it into a standard socket, but with some models it takes up to 24 hours. Instead, you can have an electrician install a 240-volt outlet, which allows charging to be completed in four hours versus 24.
- Review maintenance requirements. One of the benefits of electric vehicles is the overall reduction in maintenance, but things happen. Repair shops for EVs are still limited in many areas, so you may want to research which models require less maintenance.
The best electric cars
Currently, there are various models of electric cars on the market. Here’s a snapshot of the top-selling models in the US based on 2021 car sales.
- Tesla Model Y: The Tesla Model Y is a compact SUV available in two models: Long Range and Performance. The long-range model can drive up to 318 miles per charge and has an MSRP of $58,190. The performance series has a higher speed, but lower torque range. The Performance Series MSRP starts at $62,190 and both models have a push back date of 2022.
- Tesla Model 3: The Tesla Model 3 is the entry-level option for Tesla and is considered a compact luxury sedan. There are three trim level options and (depending on the trim package) it can drive 353 miles on a charge. Base MSRP starts at $40,390 and limited supply remains through 2022, but new models may arrive in 2023.
- Ford Mustang Mach-E: The Ford Mustang Mach-E compact SUV delivers quick and easy response, 480 horsepower and a range of up to 318 miles per charge. Base price starts at $43,895 but orders are already closed for 2022 (it will be available again in 2023).
- Chevrolet Bolt EV and EUV: Chevrolet offers an electric car available in a compact sedan and compact SUV. The base price of the EV starts at $31,500 and achieves a driving range of 259 miles.
- Volkswagen ID.4: The Volkswagen ID.4 offers three different options starting at a starting price of $41,230. These compact SUVs offer a range of up to 275 miles per charge and are currently available for delivery in 2023.
