In years past, electric cars seemed futuristic and out of reach for the average person. Fast forward to today and owning an electric car is no longer a far-fetched thing, but a viable option for many people considering buying a vehicle. Today’s consumers are also grappling with skyrocketing gas prices, paying nearly 60 percent more in gas compared to the same period last year. This has generated more interest in electric cars as people are looking for new ways to deal with rising fuel costs. With staggering fuel costs more incentive than ever to support electric car purchases, now might be a good time to consider how you can save money by investing in an electric car.
Top Electric Car Facts & Figures
- In June 2022, 65,533 hybrid electric vehicles (18,482 cars and 47,051 light trucks) were sold in the United States. ,Kelley Blue Book June 2022,
- California leads the way with the most electric car registrations in 2021, followed by Florida, then Texas. (US Department of Energy, Electric Vehicle Registration by State,
- Global and US sales of electric vehicles are booming. In 2022, nearly one in 12 vehicles sold globally will be electric vehicles. ,S&P Global,
- It is estimated that there are 2.2 million electric vehicles or hybrids currently on the road in the US. (S&P Global)
- The electric vehicle market is expected to grow to 32 million vehicles globally by 2030. (S&P Global)
- Electric vehicle batteries now average $150 per kilowatt hour, a decrease of about $600 per kilowatt hour in 2014. (International Energy Agency,
- The 50 most populous metropolitan areas accounted for 77% of new electric vehicle registrations in 2020, indicating that cities are witnessing the highest growth of electric vehicles. ,international council on clean transport,
- Roughly 96% of EV owners say they will buy or lease another. ,AAA)
- About 57% of consumers initially avoid EVs because they worry about running out of charge. In fact, only 5% of owners have expired fees. (AAA)
How do electric cars work?
Traditionally, vehicles use an internal combustion engine that relies on gasoline to transfer energy and operate correctly. An electric vehicle uses electrical energy, which is stored in the vehicle’s battery pack. Battery packs provide the energy source for the electric motor. You can charge the battery pack for an electric vehicle by plugging it into a standard outlet at home or a charging station outside on the road.
Not all electric vehicles work in the same way. Battery electric vehicles, commonly called EVs or electric cars, derive their energy simply from charging the battery pack. Hybrid electric vehicles, or HEVs, use a combination of a battery pack (which requires an electric charge) and an internally combustible engine, which relies on gasoline. HEV models do not plug in for charging like an electric vehicle. If you want a hybrid model that relies on plug-in charging, you’ll need to purchase a plug-in hybrid vehicle, or PHEV.
Electric Vs Gas Vehicle Cost
According to Kelley Blue Book data published in June 2022, the average cost of an electric vehicle is $66,997. The same data shows that this is a price increase of 13.7% compared to June 2021. The average cost of a hybrid vehicle in June 2022 was $39,040. An increase of 27.6% over June 2021.
According to the Bureau of Labor Statistics, the cost of a new EV or HEV has certainly increased over the past 12 months, but the cost of all new vehicles has increased by 11.4% over the 12-month period. There has also been an increase of 7.1% in old vehicles in the last 12 months. Entry-level luxury cars, luxury cars and SUVs/crossovers, and minivans all experienced double-digit price increases over the past 12 months. The price of subcompact cars also saw a major increase with an average increase of 11.3% over 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 are some of the major benefits for EV owners.
According to the latest AAA figures, the average price per gallon of gas is regularly $4.21. Most drivers painfully know how gasoline prices have risen the most this past year (currently around 60%). With electric cars, electricity is the main source of energy, and even with increased electricity prices (13% currently versus June 2021), there could be more savings for electric vehicle owners.
To get the most accurate estimate of how much electricity it will cost to charge an EV, you can use a calculator provided by the Alternative Fuels Data Center to compare the savings of charging versus filling depending on where you live and the vehicles. can do. you drive.
save on maintenance
With fewer parts and less oil being used, the maintenance cost associated with electric vehicles has also come down. A report published by Consumer Reports shows that electric vehicle owners save up to $4,600 in maintenance costs compared to conventional gasoline vehicles. With an electric vehicle, there aren’t as many tune-ups and oil changes in the schedule and you don’t have to worry about combustion engine breakdown like you do with gasoline-powered vehicles.
keep insurance rates reasonable
In general, car insurance rates for electric cars are slightly higher than those for gasoline-powered cars. However, as with other insurance policies, shopping around and taking advantage of discounts can be useful in reducing costs. Safety device options such as automation or lane assist may qualify for additional discounts with insurance providers. Overall, with more drivers on the road using safety features like Lane Assist or Collision Avoidance, it can potentially reduce the number of accidents due to human error. As electric vehicles become more common, the cost of some components of cars may also come down, leading to lower average car insurance rates.
Having an electric vehicle significantly reduces your carbon footprint. The sustainability benefits are many, including:
- Electric vehicles do not emit any tailpipe.
- Overall air quality is better for everyone when there are more electric vehicles on the road.
- EV companies generally use environmentally friendly materials in the production process.
- Even when you count the manufacturing process, the greenhouse gas emissions associated with an electric vehicle are less than the average emitted by a gasoline-powered vehicle over its lifetime.
- The potential for reuse and recycling of batteries for electric vehicles is increasing due to improved technology.
States That Offer Electric Car Incentives
Buying a new electric car can be an expensive proposition. However, there are several federal, state and local incentives that can potentially offset some of these costs. These electric car incentives encourage buyers to buy more climate-friendly alternatives to gas-powered vehicles. It’s important to research what incentives are available in your state and through your local utility companies, but here are some programs currently available:
- tax credits: The US government provides a $7,500 Electric Vehicle Tax Credit for certain purchases of electric vehicles. The exact tax credit varies by brand and it should be noted that Tesla and GM-branded electric cars are no longer 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. Your city government may also have local incentives, such as incentive programs available in San Francisco, California and Buffalo, New York, in addition to state programs.
- Utility Incentives: Utility companies can offer their own incentives for electric vehicle owners. Check with your utility company to see if your vehicle is eligible.
- HOV Reach: Some cities, such as San Jose, California, and Atlanta, Georgia provide HOV lane access for anyone operating an electric vehicle. These lanes are generally restricted to vehicles with two or more passengers, but this requirement is not for EV drivers.
- Toll Incentives: Some states offer toll reduction incentives for drivers of electric vehicles.
charging stations in usa
The federal government has pledged to increase the number of charging stations available in the US. The more stations available, the more confident electric vehicle owners can feel out on the road. You can find the current list of charging stations via the Alternative Fuels Data Center.
Top 10 States for EV Charging Stations
electric car buying tips
If buying an electric car is in your future, there are steps you can take to make ownership more realistic before you buy.
- Check how many charging stations are available in your area. Use the interactive map available through the Alternative Fuel Data Center to find the nearest charging station to your home, work or while on the go.
- Explore available EV incentives. There are several resources available online, including this database maintained by the Alternative Fuels Data Center, that details available federal and state incentives for purchasing an electric vehicle (or PHEV or HEV). You can also contact your local utility company for incentives.
- Once you have identified a possible model, be sure to check the operating range of the vehicle. This will be helpful in calculating how far the fee can take you and ensure that it is sufficient for your daily commute and other weekly commitments.
- Change outlets at home to optimize charging. You can charge an electric vehicle simply by plugging it into a standard outlet, but this takes up to 24 hours with some models. You can have an electrician install a 240-volt outlet instead, which will allow a charge to be completed in four hours versus 24.
- Review maintenance requirements. One of the benefits of electric vehicles is the lower amount of maintenance overall, but things do happen. Repair shops for EVs are still somewhat limited in many areas, so you may want to research which models require less maintenance.
best electric cars
There are different types of electric car models available in the market now. Here is a snapshot of the best-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 is capable of driving up to 318 miles on a single charge and has an MSRP of $58,190. The Performance Series is capable of higher speeds, but has less than driving range. The MSRP for the Performance series starts at $62,190 and the delivery date for both models has been pushed to later in 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) is capable of a range of 353 miles on a single charge. The base price MSRP starts at $40,390 and has some availability remaining for 2022, but the new models will likely be delivered in 2023.
- Ford Mustang Mach-E: The Ford Mustang Mach-E compact SUV delivers a quick and nimble response with 480 horsepower and can drive up to 318 miles on a single charge. Base price starts at $43,895 but orders for 2022 have already been closed (it will be available again in 2023).
- Chevrolet Bolt EV and EUV: Chevrolet offers an electric car available in a compact sedan and a compact SUV. The base price of the EV starts at $31,500 and offers 259 miles of drive range.
- Volkswagen ID.4: The Volkswagen ID.4 offers three different options, starting with a base price of $41,230. These compact SUVs offer a drive time of 275 miles on a single charge and are currently available for 2023 deliveries.