Should You Buy an Electric Car? 3 Reasons Why You Should and 3 Why You Shouldn’t
Written by
David Nadelle
Edited by
Sean Fisher
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The market for electric vehicles (EVs) has grown speedily in recent years and adoption will accelerate over the next decade along with supportive legislative policies and technological advances. Despite an unsteady global market and the U.S. lagging behind other countries in new EV sales, the government and the auto industry are confident consumers will come around sooner than later.
However, having a healthy discussion about purchasing an EV is one thing, whether you should actually take the plunge and go electric is another. Unless driving is a necessary part of your life, this is not an ideal time to buy a car, new or used, electric or conventional. And if the time has come where you need to get a car or replace an old one, your goal should be to spend the least amount, especially given the current economic environment.
As vehicle prices have been attempting to compete with soaring inflation, it’s caused supply and inventory to be spotty for the past few years. Making that large of a purchase for a depreciating asset isn’t good spending, but for the majority of American drivers, there are reasons to be made for and against making your next car or truck an EV.
Here’s three reasons why you should buy an electric car and three why you should wait:
3 Reasons to Drive Electric
- There’s Deals To Be Had: A couple of its models are among the top 15 best-selling vehicles in the U.S., but Tesla has already cut prices on its models six times this year in an attempt to get more of its cars into the marketplace (though it hiked them slightly again this week). For a brief time, the Tesla Model 3 was priced under $40,000, significantly cheaper than the average transaction price for a new electric vehicle. Some EVs are cheaper alternatives to internal combustion varieties and even more are coming as competition increases and if Tesla cuts spark a price war.
- Federal Tax Credits: There are many regulation details to sift through, but in general, qualified EVs are eligible for a maximum government tax credit of $7,500 and a credit of $4,000 for used clean vehicles, up to a maximum sales price of $25,000. Taking advantage of a significant tax credit might sway you to buy now, however, as Kelley Blue Book (KBB) suggests, you many want to delay your purchase until 2024, when the $7,500 credit can be taken as a rebate directly from a dealer.
- High Performance: From a strict performance standpoint, electric cars drive like a dream compared to conventional vehicles. Quick acceleration that produces peak torque from a standstill, superb lower center-of-gravity-handling and less maintenance issues are attractive perks for those who expect the most efficient and clean operation from their cars.
3 Reasons To Wait To Buy an EV
- Price: Without taking a federal tax credits into account, the average transaction price for a new electric vehicle was $59,739 for Jan. 2023, according to Edmunds. Buoyed by the enormous cost of lithium used in EV battery production, the minimum sticker price of $30,000-$40,000 is way beyond the means of the average American driver. As EVs begin to dominate the market, costs will drop, but in the meantime, auto manufacturers are seemingly placing profit before sales at the moment.
- Lack of Charging Stations: The Infrastructure Investment and Jobs Act of Nov. 2021 allocated $7.5 billion to building out a nationwide charging network and was initially focused on installing fast chargers along the interstate highway system, thus extending longer-distance travel. However, with an approximate 56,000 EV changing stations and 148,000 charging ports throughout the U.S., infrastructure needs to be expanded three-fold to meet future numbers and existing ports and stations need to be better maintained.
- Range Anxiety: Drive ranges are expected to improve as technology moves manufacturing, but EVs have a shorter driving range than conventional vehicles and need more frequent stops to “fuel up.” Unless you have the funds to buy a luxury model with long Environmental Protection Agency (EPA) range estimates like the Lucid Air (516 miles, according to Car and Driver), the Tesla Model S (405 miles) or Hyundai Ioniq 6 (361 miles), you are looking at an average of range of under 300 miles for todays electric vehicles. “It’s likely you will be able to buy an EV with a longer range a year or two from now than you can today,” states KBB.
More From GOBankingRates
