Financial Reasons To Buy an Electric Car in 2024
Written by
Nicholas Morine
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In 2024, the financial and environmental incentives for purchasing an electric vehicle (EV) are more compelling than ever, with significant contributions from both New York and California among other states.
The New York State Energy Research and Development Authority (NYSERDA) and the California Air Resources Board (CARB) highlighted several key reasons why drivers are increasingly opting for EVs over traditional gasoline-powered vehicles.
- Financial incentives for purchase/lease: Both New York and California offer a range of incentives to lower the cost of EV ownership. Federal tax credits are available for battery-electric, hydrogen fuel cell, and plug-in hybrid electric vehicles. State rebates and incentives in both states provide additional savings, with increased amounts for low-to-moderate income households. Local incentives, including rebates for home charging station installation, further reduce costs. Other states may also offer state-level initiatives.
- Reduced fuel and maintenance costs: EVs offer significant savings in fuel and maintenance. In California, charging an EV costs about half as much as fueling a gasoline car for the same distance. Maintenance costs are lower due to fewer moving parts in electric motors and the extended lifespan of brake pads thanks to regenerative braking. New York’s analysis also supports these findings, with substantial savings in fuel and maintenance costs over the lifetime of the vehicle.
- Carpool lane access: In California (and 12 other states, including Arizona, New Jersey, Florida, and more), EV drivers enjoy the privilege of single-driver access to carpool lanes, a significant advantage in reducing commute times in traffic-congested areas. Less commuting means less time wasted on the road, more time at work, and more opportunities to make an extra buck — or spend time with family — instead.
- Enhanced driving experience for the same cash layout: EVs are known for their high performance, with quick acceleration and superior handling. The positioning of the battery pack in most EVs lowers the vehicle’s center of gravity, improving weight distribution, stability, and cornering. Some EVs are hitting the $20,000 or less MSRP on used models (including the popular Nissan Leaf) making this performance prospect affordable to many.
Both New York and California are actively expanding their charging infrastructure to support EV adoption. New York is installing hundreds of direct-current fast chargers, while California is enhancing its network with public charging stations and special utility rates for off-peak charging.
While focus has been placed on these two populous states, many other jurisdictions are following suit in terms of providing incentives and infrastructure for EVs, and the benefits are numerous for those who choose to buy electric cars, trucks, or SUVs.
Is it time to make the switch? Many Americans seem to think so, with Bloomberg projecting that 13% of new cars sold in the United States will be electric in 2024, per Car and Driver.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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