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How electric vehicles can save you money

Electric vehicles are becoming more and more popular, but how much do electric vehicles really cost? The answer may be more affordable than you think. 

Electric vehicle being charged.

Gas Pump vs. Charging Stations 

Like gas pumps, there is no standard price for charging stations. It varies depending on what kind of charging station it is, which car you drive, and which state you’re in. However, due to electricity not being measured or valued by gallons, there is a single fixed price every driver pays, no matter how much they have to charge their car. This means, that drivers can save over half as much on charging stations compared to gas pumps every year – especially with gas prices on the rise.  

One potential drawback is availability of charging stations in comparison to gas pumps. Sure to change as the demand for EV’s continues to rise, though it will take time to build up the power grid to handle the large demand of energy from charging stations. There is also no current standard on charging solutions, meaning some EVs have different plugs that only work at certain stations. Though on the flip side you can charge your car at home which obviously you can’t do with a gas vehicle. Initially a home charging station can be expensive, but it will pay for itself over time.  

Insurance Differences 

Right now, insurance rates cost about 23% more for electric vehicles than gas vehicles. However, as electric vehicles become more prevalent, that will likely change. As the production of EVs increases, the cost of EV parts will decrease, costing insurers less to repair. Several car companies have already planned to embrace EVs more in the coming years, such as GM, Ford, Hyundai, and others.  

Maintenance Costs 

Due to the large number of moving parts and components in internal combustion engines (ICEs) gas vehicle engines, electric vehicles have a lot fewer parts to break, making them much cheaper to maintain. Additionally, EVs don’t need oil changes, so regular maintenance is less of a necessity. Plus, EV batteries generally last a lot longer than ICEs, with some EVs lasting well beyond the average mileage of most gas cars. 

Common features on EVs such as regenerative braking and one-pedal driving reduce the stress on brake pads, which improves the reliability of EVs over ICEs. While car batteries can degrade over time, the range of EVs does not. The most expensive component in an EV is the battery, which does not normally need to be replaced unless it is faulty or gets damaged. Overall, maintenance costs are about half as much on EVs compared to gas-powered cars.  

Total Savings 

Currently, the most popular EV on the market is the Tesla Model Y, which costs at least $50,000, excluding state tax credits. One of the most affordable new EVs is the Nissan Leaf, which is over $20,000 cheaper than the Model Y. However, cars are an investment that last years and EVs maybe more expensive to purchase upfront but they are considerably cheaper to operate over their lifetime. In all, EV owners can save upwards of $10,000 compared to gasoline-powered cars, savings that will likely increase as EVs become more popular. Owners of the Tesla Model 3 can save over $17,000 compared to similar gas-powered performance sedans.  

With the passing of the Inflation Reduction Act providing federal tax incentives for electric vehicles, there is no better time to consider an EV. This tax incentive can offer drivers up to $7,500 in savings for new EVs and up to $4,000 in savings for used EVs. 

 

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