4 Ways Electric Vehicles Can Save You Money

This could take some of the sting out of that high price tag.

Everyone knows that electric vehicles are better for the environment than their gas-powered counterparts. But limited availability and high upfront costs means these cars aren't accessible for everyone yet. Still, if you can afford one, it could save you a lot of money in the long run. Here's a closer look at four ways electric vehicles can do this.

1. Cheaper operating costs

Purchasing an electric vehicle means you can skip those trips to the gas station and avoid paying multiple times a month to keep your car running. How much this saves you will depend on how much you drive, but for most people, it will make a noticeable difference to their finances.

You will still have to pay to keep your electric vehicle going, though. Many electric vehicle owners choose to install a charge port in their garage so they can charge their car overnight. This brings another upfront cost, but you'll still save money in the long term because electricity is cheaper than gas.

2. Cheaper maintenance costs

Electric vehicles are usually cheaper to maintain than gas-powered cars, according to the Department of Energy. Electric vehicles typically have fewer fluids and moving parts than traditional cars and trucks.

However, electric vehicle owners should be aware that they can be more expensive to repair following an accident. The equipment used in electric vehicles can be expensive, and there are fewer mechanics trained to work on them. As a result, drivers may have to pay higher auto insurance premiums to ensure their electric vehicle is completely protected.

3. Tax savings

In order to encourage people to purchase electric vehicles, the federal government offers a $7,500 tax credit to those who purchase one. But not just any electric vehicle will do. Vehicles must have a certain percentage of their components manufactured or assembled in the United States.

If you qualify for this credit, you could shrink your 2022 tax bill considerably. The tax break will continue in 2023, but new rules will make it harder to obtain, so you may be better off buying one before the end of the year if you've been thinking about it.

4. Less interest on auto loans

Some banks and credit unions offer green auto loans to those who purchase electric or hybrid vehicles. These work exactly the same as a conventional auto loan, but they often come with more flexible repayment terms and lower interest rates.

These loans can be difficult to find, but they're becoming more popular, especially with credit unions. Some online lenders are beginning to offer green auto loans as well, so you could turn to one of these if your current bank doesn't offer them.

Even with these savings, electric vehicles might be too pricey for some. That's OK. As the technology continues to evolve, we'll most likely see them come down in price. Until then, just keep browsing once in a while to see what's out there. You never know when you'll find a great deal.