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Writer's pictureRafael Arredondo

WILL AN ELECTRIC CAR SAVE YOU MONEY?


Electric Vehicles (EV) are becoming more and more popular but do they really save you money? Well, it’s not as straightforward as you may think. Here is a breakdown of advantages/disadvantages:

SAVINGS:

  • Cost of gas is generally higher than electricity. EV cars will save drivers on average $800-$1,000 a year.

  • Maintenance costs are lower with EV’s because of less moving parts.

  • You can get a one-time EV tax credit of up to $7500

HIGHER COSTS:

  • The purchase price of electric cars is currently higher…average of $10,000 to $15,000 more than comparable gas cars.

  • Studies show that EV’s depreciate faster than gas cars.

  • Insurance costs for EV’s are generally higher.

So if you put all this info together, EV's are not always the cheaper option. Cost of gas/electricity in your area, amount of driving, ability to charge at home, etc. will determine the final savings. Of course, there are other factors beyond cost to consider that may help you decide if an EV is the right car for you (e.g. environmental impact, carpool stickers, amount of driving, etc.).

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