3 Hidden Ways To Save on an EV – Other Than a Tax Credit
Written by
John Csiszar
Edited by
Kristen Mae
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The federal $7,500 tax credit on purchasing electric vehicles has no doubt gotten many Americans to buy an EV they might not have considered it otherwise. But with that credit — and other EV incentives — potentially disappearing under a second Trump administration, many Americans are wondering whether buying an electric vehicle still makes financial sense.
The truth is that while a major upfront tax credit may take some of the sting out of an EV purchase, these vehicles still offer ongoing savings. Even without factoring in their potential environmental benefits, these financial advantages can give EVs an edge over traditional internal combustion engine (ICE) vehicles from a strictly economic perspective.
A common knock against EVs is their high upfront cost, and potentially losing the tax credit could deter some buyers. But as time goes on, the cost of EVs is anticipated to fall — and if you’re willing to buy used, you can score plenty of great deals on the secondary market, even now. Coupled with these “hidden” ways to save, an EV could still be a worthwhile investment, whether or not you get the tax credit.
Savings on Fuel
According to the Southwest Energy Efficiency Project, electric vehicles are about four times as efficient as ICE vehicles. This means that depending on electricity rates in your area, you could save around $1,000 per year on fuel. If you live in Provo, Utah, those savings might jump to $1,500 annually, according to SWEEP. Over the lifetime of a vehicle, you could save $15,000 to $20,000 in fuel costs alone compared to a gas-powered car.
Maintenance
Electric vehicles, by design, have fewer moving parts than ICE vehicles. As cited by the National Resources Defense Council, the drivetrain of a Tesla only has about 17 moving parts, compared with more than 200 in a typical ICE vehicle. In the motor itself, the number of Tesla moving parts drops to just two, while a traditional internal combustion engine has more than 100.
As a result, Consumer Reports estimates that EV owners save roughly $4,600 in maintenance costs over a car’s typical lifespan with an EV vs. an ICE vehicle.
Total Cost of Ownership
While the savings on gasoline and maintenance are quite impressive with an EV, the fact remains that many new EVs cost more than their gas-powered counterparts. This is why the total cost of ownership plays an important role in making an economic decision between the two.
On this front, Consumer Reports gives EVs the overall nod as well, particularly for lower-priced EVs. For example, a Chevy Bolt costs about $8,000 more to buy than the Hyundai Elantra GT, but over a 200,000-mile lifetime, the Bolt is estimated to cost $15,000 less to operate, more than offsetting the upfront cost premium. The Tesla Model 3 actually costs less than a new BMW 330i, and its long-term operating costs are $17,000 less, making it much more of an overall value, personal preference aside.
The Bottom Line
As Chris Harto, a senior policy analyst for transportation and energy at Consumer Reports, puts it: “No matter how you look at it, the massive lifetime savings potential of EVs could be a game changer for consumers. As battery prices and technology improve, prices come down, and more attractive models hit the market, it’s only going to get better.”
Even if the EV tax credit is reduced or completely eliminated, EVs still offer plenty of hidden ways to save that can add up over the lifetime of your vehicle.
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