Robert Johnson, the Connecticut-based founder of Sawinery, has been considering getting an electric car for the past four years. But he hasn’t pulled the trigger yet because charging stations aren’t widespread. Plus, electric cars still cost significantly more than gas-fueled cars.
“We ended up with a Toyota Highlander, as this is a family car, and it can fit all our belongings during our trips,” says Johnson
According to a 2020 Consumer Reports survey, nearly every American with a driver’s license has heard of electric cars, but only 30% know much about how they work. Yet 71% of respondents said they’d consider buying one.
What to Consider Before Buying Electric
Here’s what to consider before making the switch to an electric vehicle:
Rebates and Discounts
Many electric vehicles qualify for a $7,500 federal tax credit. But the amount of the credit depends on the number of electric vehicles the manufacturer has sold since 2010. Tesla and General Motors have already exceeded their federal cap for eligibility, so they’re excluded from the credit, says Melanie Musson, an electric vehicle expert with AutoInsurance.org.But this could change. President Biden is considering an electric vehicle tax credit that could range from $7,000-$10,000, says Matt Pressman, the president of EVANNEX, based in Florida. Some states also offer incentives. Check evcharging.enelx.com/resources/federal-and-state-electric-vehicleincentives to see what tax breaks and rebates are available to you.
Choice
This is finally expanding in the electronic vehicle world, explains Steve Birkett, managing editor and electric vehicle specialist for Findthebestcarprice.com in Boston. Major automakers, including Ford, Volkswagen, and General Motors are entering the market in a big way, giving buyers many options beyond Tesla, the market leader.Price
Electric vehicles cost more than regular cars, because of the cost of manufacturing their batteries, according to Matas Buzelis, spokesman for Carvertical.com, but notes that things are improving. Also, while the up-front cost tends to be higher, you’ll save money over the long term because electric vehicles don’t need oil changes, and they generally require fewer trips to the dealership.Plus, the price of EVs is falling quickly. You can even find an entry-level electric car for $30,000 today. That’s a big shift from a few years ago when EVs started at $60,000. And prices are expected to drop even more.
Range
The big recent change in electric cars is the range. “People want to be able to get to the places they need to go on a single charge, and that is becoming increasingly possible, as electric vehicle ranges exceed 300 miles at full charge,” says Andrew Garberson, head of marketing for Recurrent Auto.Charging Cost
While you don’t have to pay for gas with an EV, you still need to pay to charge it. That cost will vary depending on when and where you charge it as well as utility company rates.You may want to buy a home charging station. These range from about $200- $1,500 plus installation, which costs about $1,000 depending on your region. While all EVs sold today come with a 120-volt level 1 portable charger, which can be plugged into any regular outlet in your home, many people choose to install a 240-volt level 2 charging station for faster at home charging.
Of course, there are also free public charging stations, so it’s not 100% necessary to charge at home. PlugShare and ChargePoint are apps that will lead you to your nearby charging stations. Some charging stations are free, but most charge by the kilowatt hour, which tends to be more expensive than charging at home.
To figure out your cost of charging, you need to look at the car’s kilowatt-hours per 100 miles (kWh/100 miles) rather than its miles per gallon. You will find this rating on the vehicle’s EPA fuel economy sticker and also in your owner’s manual. Multiply the kWh/100 miles by your electric rate for the time of the day you’ll normally charge your car. For example, if you plan to charge your car overnight, then look at the time for midnight. This should give you the cost per 100 miles.
Don’t feel like doing the calculations? According to the U.S. Department of Energy, it costs about half as much to fuel an electric vehicle as it does to fuel a gas-powered car.
Consider Where You’ll Be Driving
Electric cars are more suited for urban drivers, as they need frequent breaking. When braking, the energy is regenerated to the batteries, then it can be used again, Buzelis says. “While on the highways, petrol and diesel cars are much more capable, since refuelling takes much less time and provides a greater range,” he says.Getting a Good Deal
Buying a used EV will save you money. The sweet spot is when it’s between three and five years old, Buzelis says.The time of the year you plan to buy the car is also significant. If you’re in a cold-weather region in the winter, the vehicle may be less expensive, as EVs aren’t as effective when it’s cold, Buzelis says.
“Cold weather highly influences the battery life, since heating consumes so much battery energy,” he says. “Winter tires may also have higher rolling resistance.”
Currently, 80% of electric vehicles sold in the United States are Teslas, Pressman says. Toward the end of the quarter, Tesla sometimes lowers the price of its vehicles, so you may be able to find a new Tesla that’s about the same price as a used one during that time. Avoid buying one at the beginning of a quarter, however, as there’s less pressure to sell at that time, he adds.
Before buying an electric car, Birkett suggests considering how much range you need (plus a 15- to 20-mile buffer for comfort) and the up-front price versus the total cost of ownership. And because weather affects an EV’s performance, if you live in a colder climate, find a model that has enough of a range buffer to see you through the winter.
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