Global electric vehicle sales have spiked over the last decade, increasing from 45,000 vehicles in 2011 to 6.6 million in 2021, according to a report from the International Energy Agency. EV adoption is spreading at a rapid pace, with several reasons why you shouldn’t wait any longer to purchase your own electric vehicle.
You’ll Be Immune To Rising Gasoline Costs
Gas prices in the U.S. have increased to record levels as of March 2022. According to the good people over at GasBuddy, the average gallon of gas costs $4.43. In 2021, it was only $2.84. Two years ago, before the pandemic hit, gas was approximately $2.26, only to drop to sub-$2 levels in March. In some areas of the country, gas prices are much higher – according to AAA, Los Angeles County recently reported record averages of $5.96 per gallon, its 25th consecutive day of increases.
These record-breaking gas prices drivers currently face can be rendered moot by purchasing an electric vehicle. EVs utilize an all-electric motor in place of a gas-powered combustion engine, effectively replacing trips to the gas station with stops at charging stations. Granted, charging your car at these stations (or even at home) will cost you money as well, but not to the level that gasoline-powered vehicles cost. According to Consumer Reports, EV owners can expect fuel savings of at least $4,700 over the first seven years, with lifetime ownership cost savings targeted at between $6,000 and $10,000. With surging gas prices showing no signs of slowing down, the savings in fuel cost by simply owning an electric vehicle become more and more apparent.
There Are Obvious Environmental Benefits
Driving an electric vehicle cuts down on greenhouse emissions and reduces your carbon footprint. According to the Environmental Protection Agency, electric vehicles have a smaller carbon footprint compared to gasoline vehicles, even when factoring in the electricity used when charging. If you’ve ever heard stories of how the factories that produce these vehicles are more harmful for the environment than gasoline vehicles, you can rest easy. Greenhouse gas emissions associated with an electric vehicle are still less than a gas-powered vehicle, even when the manufacturing process is factored in, according to the EPA.
Say Hello To Lower Maintenance Costs
Electric vehicles have less moving parts than their gas-powered counterparts, which means there are fewer parts that will suffer wear and tear over time. According to Chris Harto, Consumer Reports’s senior analyst for transportation and energy, “It has long been well known that EVs are cheaper to maintain than their gasoline-powered counterparts.” Compared to a gas-powered car, EV owners can expect to pay half as much in repair costs in the first three years of ownership, according to a study by Consumer Reports.
Much of the scheduled maintenance that so many vehicle owners have had to endure for the last century doesn’t apply to EVs either. “The oil changes and engine tuneups we all know from gas cars are rendered obsolete by the EV’s relative simplicity… there just aren’t as many moving parts as in a gasoline-powered car,” according to Consumer Reports’ Gabe Shenhar.
You Can Reap the Benefits of Ev Tax Credits
In order to spur interest and kickstart electric vehicle purchases, both the federal and state governments offer incentives to new EV buyers.
The U.S. government offers a tax credit of up to $7500 for new EV purchases – in other words, this credit would be subtracted from the amount of taxes you owe come tax season. If you’re liable for $10,000 in taxes when you sit down and complete your return, this EV credit would knock your liability down to $2500. That's better than the deduction for each child!
Not all new electric vehicle purchases qualify. Once an individual manufacturer sells their 200,000th EV, the U.S. government stops issuing the tax credit to the consumer. As of March 2022, both Tesla and GM have reached that threshold, with Nissan and Toyota projected to be phased out of the tax credit within the coming months. However – vehicles from other major car companies like Ford, Honda, Kia, Hyundai and more will still be eligible for the federal rebate for the foreseeable future.
The fact that EV credits can run out once certain sales thresholds are met gives consumers all the more reason to buy an electric vehicle right now. Nobody wants to be buyer #200,001 and miss out on potential tax savings of up to $7500.
Potential EV buyers will never balk at a tax credit when it’s available to them. However, if a straight-cash rebate sounds more appealing, we have good news: many states offer this incentive as well. In fact, it can be stacked along with the federal tax credit for even more savings.
States with the highest EV rebates include California, Colorado, Connecticut, Delaware, Maryland, and New York, offering up to $3,000 off the price of your new vehicle as long as it is registered in the state you purchased it in.
The savings don’t end there: Some states even offer rebates for installing charging stations in your own home!
With electric vehicle adoption rates rising higher year-over-year, there are so many advantages to buying an EV right now. You’ll save money on your fuel costs and be immune to the record-breaking gas prices. Environmental benefits and lower maintenance costs are more reasons to trade in your gas-powered car today. Yet the single most powerful reason to buy an EV right now is to take advantage of the generous tax credits and rebates being offered by the federal and state governments. Once these incentives run out, they’ll be gone forever.
All the more reason to go out and buy an electric vehicle right now.
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This article was produced and syndicated by Wealth of Geeks.