The adoption of electric vehicles is growing at an alarming rate. According to an International Energy Agency report, global sales of electric vehicles have increased significantly over the past decade. They went from 45,000 vehicles in 2011 to 6.6 million in 2021. There are many reasons to hurry up and get yours.
You won’t be affected by rising gasoline costs.
As of March 2022, gas prices in the United States have risen to new records. The average gallon of gasoline costs $4.43, according to GasBuddy. It was $2.84 in 2021. Gas was $2.26 two years ago before the pandemic. It dropped to below $2 in March. AAA reports that Los Angeles County recently posted record gas prices of $5.96 per gallon. This is its 25th consecutive day with increases.
An electric vehicle can make these record-breaking gas prices irrelevant. An electric vehicle (EV) uses an all-electric motor to replace a gasoline-powered combustion engine. This effectively replaces trips to the gas station by stopping at charging stations. While charging your car at these stations or at home will still cost money, it won’t be as expensive as gasoline-powered vehicles. The fuel savings that electric vehicles can offer are more evident than ever with rising gas prices. Consumer Reports estimates that EV owners will see fuel savings of between $4,700 and $10,000 over the first seven years. The lifetime cost savings is calculated at $6,000 to $10,000.
There are obvious environmental benefits.
Electric vehicles reduce greenhouse gas emissions and lower your carbon footprint. The Environmental Protection Agency states that electric vehicles leave a smaller carbon footprint than gasoline vehicles, even when you consider the electricity used for charging. You can rest assured if you have ever heard of factories producing these vehicles being more harmful to the environment than those that make gasoline vehicles. According to the EPA, electric vehicles still emit less greenhouse gas than gasoline-powered vehicles even after the manufacturing process has been taken into account.
Say hello to lower maintenance costs.
Because electric vehicles have fewer moving parts than gas-powered cars, they are less likely to get damaged over the years. According to a Consumer Reports study, EV owners will pay half the cost of a gasoline-powered vehicle’s repairs in their first three years. Chris Harto is the senior analyst at Consumer Reports for transportation and energy.
EVs don’t require the same scheduled maintenance that many car owners have endured over the past century. According to Consumer Reports’ Gabe Shenhar, “The EV’s relative simplicity makes it obsolete for oil changes and engine tuneups that we all know from gasoline cars… there just aren’t as many moving pieces as in a gasoline-powered car.”
The EV Tax Credits Can Be Redeemed
The federal government and the states offer incentives for new EV buyers to encourage interest and kickstart their purchases.
The U.S. government offers up to $7500 in tax credits for new EV purchases. This EV credit will reduce your tax liability to $2500 if you are liable for $10,000 in taxes when you file your tax return. This is better than the deduction per child! This credit would then be subtracted from your tax liability come tax season.
Not all new electric vehicle purchases qualify. The U.S. government ceases issuing tax credits to consumers once a manufacturer has sold their 200,000th electric vehicle. Both GM and Tesla have passed this threshold as of March 2022. Nissan and Toyota are expected to be phased out from the tax credit in the next few months. For the foreseeable future, however, vehicles from major car companies such as Ford, Honda, and Kia will still be eligible to receive the federal rebate.
Consumers have every reason to purchase an electric vehicle now, considering that EV credit can expire once certain sales thresholds have been met. No one wants to be number 200,001 and miss tax savings up to $7500.
Potential EV buyers won’t hesitate to take advantage of a tax credit if it’s available. If a cash rebate sounds better, many states offer it. It can even be combined with the federal tax credit to make even more savings.
California, Connecticut, Delaware, and Maryland are the states with the highest EV rebates. New York offers up to $3,000 off the cost of your new car, provided it is registered in the condition it was purchased in.
You don’t have to go far to save: Many states offer rebates for charging stations installed in your home.
There are many benefits to purchasing an electric vehicle, with electric vehicle adoption rates increasing year over year. You will save fuel and not have to pay record-breaking gas prices. You have more reasons to sell your gas-powered vehicle today than just the environmental benefits and lower maintenance costs. The single best reason to purchase an EV now is to benefit from the generous tax credits or rebates the federal and state governments offer. These incentives will end once they run out.
This is all the more reason you should buy an electric car right away.