Do Electric Cars Save You Money?

Jul 10, 2020
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Choosing a new car can be exciting yet challenging with so many choices out there. Not only do you have to decide about the make and model of your new wheels but you might also be deciding between a traditional gas-powered car or an electric car such as a Tesla. For the average American household, transportation is the second largest expense after housing. Swapping a gasoline-powered vehicle for an all-electric vehicle or plug-in hybrid electric vehicle can help you save money on your daily expenses.

Here are some benefits of going green which might save you some green!

1. Costs less to drive

The biggest benefit of electric cars is obvious, you no longer need gas. That’s a big deal, since we spend between $2,000 and $4,000 on gas every year. You can calculate exactly how much you spend with this fuel budget calculator https://www.calculators.org/auto/fuel-budget.php. With fully electric cars you spend only a fraction of this money because electricity can be generated locally. On top of the cost savings, electricity rates are much more stable than gasoline prices. Over the past 10 years, the cost of fuel ranged from $1.50- $4.00 per gallon. By comparison, over that same amount of time, electric car drivers paid about $1.20 for electricity to go the same distance.  A consistent electricity rate means that fueling an electric car is both more budget-friendly and more predictable. Keep in mind, you’ll need to carefully plan for when you charge up your car. While filling up at the gas station only takes a few minutes, a full charge for your electric car can take up to 8 hours at home. And even at fast, commercial charging stations, it will take 30 minutes to charge the battery pack to 80%. When it comes to powering your electric car, you’ll save a lot of money, but you may have to sacrifice some time and convenience.

2. Cuts maintenance costs

Electric vehicles have fewer moving parts than those powered by gas, which means that in the end, you’ll save on taking care of your car. You won’t need to pay for things like oil changes, spark plugs and more. Plus, electric motors are able to slow themselves down, which puts less strain on your brakes. But you’ll still need to head in for things like tire rotations and replacing windshield wipers. On average, you’ll save about $1,500 on the first 150,000 miles worth of maintenance with an electric vehicle.

3. Save with Uncle Sam

Electric vehicles aren’t just less costly to own, they’re often inexpensive to buy due to the available tax credits. As a token of thanks for cutting down on pollution, the government offers a $2,500–$7,500 tax credit just for making the switch. Learn more about specific tax credits by visiting https://fueleconomy.gov/feg/taxevb.shtml. Your car needs to meet certain criteria, but most electric cars qualify. Lease payments can be even more enticing, since the leasing company takes the tax credit and passes on the savings to the driver.

Not only are the cost savings a major benefit to owning an electric car, but for many drivers, just knowing that they’re doing their part to save the planet is reason enough to take the leap into purchasing an electric vehicle. The Police Credit Union’s no-cost Auto Buying Services handles the process of locating your new car—all you need to do is specify the make and model you’re looking for. Plus, through August 31, 2020, you can get a 0.25% loan rate discount when purchasing a vehicle through our Auto Buying Service! To get started, visit https://www.thepolicecu.org/accounts-services/vehicle-loans/auto-buying-service.

 

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