Believe it or not, the first prototypes of electric cars came out already at the end of the 19th century. However, it was not until the early 2000s that electric cars became more and more common in everyday society. Now that the infrastructure for electric cars (such as charging points at home and filling stations in parking lots) is more commonplace, more people want to make the switch. In this article, we look at some of the benefits of buying an electric car and when it might make sense for you.
Compare electric car with car on gas or hybrids
Let’s start with a few definitions first:
Standard gas vehicle — a vehicle with an internal combustion engine that runs on petrol. These are the cars that have been popular for over 100 years.
Electric car — A fully electric car runs on electricity only. Most electric cars do not produce any kind of exhaust emissions and usually have a shorter range than a comparable gas vehicle.
Hybrid car — As the name suggests, a hybrid car is a combination of both an electric car and a gas-powered car. Hybrid cars usually run mainly on electricity, but have a gas tank that can give a longer range.
Cost benefits of buying an electric car
The biggest cost advantage of buying an electric car is that you don’t have to buy gasoline. Eliminating your gas purchases can have a major impact on your overall financial picture. Electric cars also generally require less maintenance as they do not require an oil change and have fewer moving parts.
Keep in mind that buying an electric car does not mean you can drive it for free. You’re still paying for the electricity that charges your car’s battery. However, this will be cheaper than buying gas. One study found that the average electric car owner saves between $800 and $1000 a year. That can add up to thousands of dollars in savings over the lifetime of an electric car.
Tax benefits of buying an electric car
Electric cars usually have a higher initial sticker price than comparable gas-powered vehicles. However, there are also tax incentives that can help reduce initial costs. In 2022, there is a federally refundable tax credit of up to $7,500 for the purchase of a qualifying electric vehicle. Please note that only certain electric vehicles are eligible for this tax credit, for example vehicles from General Motors and Tesla. In addition, some states (such as California) offer tax credits for the purchase of electric and hybrid vehicles.
Other reasons to buy an electric car
In addition to the savings on fuel costs, lower maintenance costs and tax credits, there are a number of other advantages to buying an electric car. If you’re environmentally conscious, buying an electric car can demonstrate your commitment to reducing reliance on fossil fuels. You can even install solar panels in your home to save even more money and increase your renewable energy generation.
Due to the differences between an electric car engine and an internal combustion engine, electric cars also have faster acceleration than gas-powered vehicles. Many electric vehicle owners also enjoy quiet driving (no traditional engine “hum”) and no idling while waiting. And if you’re concerned about driving range and charging options, public charging stations are becoming more common.
Where to buy an electric car?
Once you’ve decided that you’re ready to buy an electric car, you have a number of options depending on whether you’re buying a used or new car. If you are looking for a car loan, it is best to arrange your financing in advance. This way you can walk into the purchase transaction as a “cash buyer”. This can simplify the negotiation process and potentially save you some serious money. One place where you can check loan rates is the Mint Auto Loans Marketplace. The marketplace allows you to compare different lenders and options to find the right one for you.
It comes down to
With these benefits of buying an electric car, it’s no wonder that electric cars are becoming much more profitable. In addition to tax credits and fuel savings, there are other reasons to consider an electric car. You pay less maintenance, have no exhaust emissions and have faster acceleration. But the main reason for most people remains the cost saving. The more gas prices rise, the more sense it may make for you to buy an electric car.
Sign up for Mint today
From budgets and bills to free credit score and more, you’ll
discover the effortless way to stay on top.
Learn more about security
Dan Miller (101 posts)
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families travel for free/cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 children.
This post The benefits of buying an electric car
was original published at “https://mint.intuit.com/blog/electric-car/the-benefits-of-buying-an-electric-car/”