With gas prices rising by more than 58% compared to last year, you may be considering switching to an electric car to save money.

But considering that electric vehicles are more expensive than gas-powered cars and that electricity costs more, is it cheaper to go electric? The answer is yes – although it depends on your driving habits, where you live, and the type of vehicle you are buying. You may want to consider a hybrid vehicle with both gas and electric motors.

See how the cost of electric vehicles is compared to gas-only cars.

Electric vehicles are expensive

According to Kelly Blue Book, the average selling price of an electric vehicle (EV) is $ 56,437 – up from $ 46,329 per $ 10,000 of the industry average of gas and EVs. In terms of price, the EV is the equivalent of an entry-level luxury car.

To save time by charging EVs and prolonging battery life, many drivers also install “Level 2” chargers in their homes, which cost a total of about $ 2,000. According to Level 2 Charger, it takes less than eight hours to recharge your vehicle according to Jedi Power.

Most EVs come with a Level 1 charging cable that can be plugged into a common 120-volt indoor socket but can take up to 40 hours to fully charge your vehicle. It is cheaper, but less comfortable.

Tax credits can reduce the cost of an electric vehicle

Studies show that while the price difference between EVs and gas-powered vehicles is expected to decrease over the next decade, this will depend on further improvements in battery technology, which will result in lower production costs.

In the meantime, customers will be able to compensate for some of the premiums paid by EVs with tax credit. The federal government will provide $ 2,500 to $ 7,500 in non-refundable tax credit for newly purchased electric vehicles.

However, the credit is limited to the first 200,000 vehicles sold by one manufacturer. Tesla and General Motors have surpassed this number, so there is no credit from these manufacturers. A list of electric vehicles still eligible for federal tax credit can be found here.

Your state may also offer its own tax credit or deduction. EV advocacy group Plug In America has an interactive map showing electric car incentives in each state. New York, for example, has a discount of up to $ 2,000.

Electric vehicles will have cheaper fuel and maintenance costs

EVs often have a high purchase price, so owners can save a lot on operating costs. A study of 2020 Consumer Reports found that EV owners spend an average of 60% on fuel compared to domestic combustion engines.

This calculation includes average commercial charging stations (11 visits per 15,000 miles, 200 miles for a car), which can be two to three times more expensive than charging your car at home. Prices vary when charging at commercial stations, but the total cost of a session to fully charge your car battery is around $ 10-45.

With regard to rent, domestic electricity prices vary by state depending on a number of factors, such as regulation and how electricity is generated, but the average monthly cost is $ 25 per month.

And because EVs have fewer parts than gas-powered cars (no oil to replace, no replacement spark plugs), maintenance costs are lower. According to a recent report by We Forecast, after 36 months on the road, the service cost for electric cars and light cars was 31 percent lower than for gasoline-powered vehicles.

So which one is cheaper?

According to a report by the US Department of Energy, after 15 years, when it comes to price, maintenance, finance, maintenance, federal tax relief and fuel costs, electric cars are less expensive than similar gas-only models. The electric version of a small SUV costs $ 0.4508 per mile, and $ 0.219 per mile less than $ 0.4727 is a gas-powered model.

The average lifespan of the car – 200,000 miles, as a car and driver – will cost $ 90,160, the same EV $ 94,540, with a difference of $ 4,380. Note that this does not include total state tax breaks, but is included as part of the study.

EVs are generally cheaper than their gas counterparts, and newer EVs with a battery capacity of more than 300 miles may cost more. The 300-mile electric car, which costs about one mile, costs four cents more than the same gas models per mile, although they are mostly brand new electric cars.

Cheap though they are, electric vehicles come with a sale

One of the major drawbacks of EVs is the inconvenience of charging a car charging station or at least a Level 2 charger if you are not at home. And even with the fastest 3 chargers available on commercial sites, it can take up to 30 minutes to fully charge your EV.

Kelly Blue Book senior managing editor Matt Delorenzo said, “Time is of the essence. And they will return to the road. “

Compared to 150,000 gas stations, there are about 46,000 commercial charging stations, so potential buyers want to use this interactive map to make sure it is nearby. And since the average EVs range is less than 200 miles, you may want to consider hybrid electric vehicles if you drive long distances frequently. Hybrids have both electric motors and gas motors, which can switch between the two depending on the distance you plan to drive.

“If you only have one car, I think it would be better if you had a hybrid,” Delorenzo suggests. “$ 5 per gallon of gas [in some parts of California]You will find a car with an electric range of 30-50 miles, and if you travel only 15-20 miles, you can use it as an electric vehicle. But if you have a road trip or you have a power problem, you have a gas engine to fall back on. “

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