Electric Vehicles(EVs) are the next big thing, and rightfully so. Owning an EV comes with a few obvious perks, right? You’ll be lowering your carbon footprint, helping to invest in renewable energy, and you won’t have to pay for gasoline anymore.
These are all things to celebrate. But the hidden benefits of owning an EV are just as substantial. And even if you don’t own a green vehicle yet,
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Owning an electric vehicle comes with short-term costs and long-term savings
EVs are initially expensive to buy—and that’s what turns many away from considering them. According to a recent
Consumer Reportsarticle, new EVs tend to cost 10-40% more than their gas counterparts.
It’s important to remember that EVs are still new technology, so costs are high right now—but owning one is also about the long-term benefits of your purchase.
One of those hidden benefits to EV ownership is fuel savings. Consumer Reports estimates the savings on fuel over seven years to be nearly $5,000.
Looking at the repair and maintenance costs over a vehicle’s lifetime, EV owners save an expected $12,000 compared to gas vehicle owners. These numbers don’t lie—owning an EV can save you money in the long run.
What are the tax benefits of owning an EV?
As with most things that are tax-related, the tax benefits of owning an EV can be difficult to understand.
Edmundsgives the rundown on the tax benefits of EV ownership:
- The federal government does offer a tax credit of up to $7,500 to anyone who purchases an EV for that tax year. However, if you owe $5,000 in taxes, you will be receiving a credit of $5,000 to cover what you owe. No more than that.
- Some states impose high fees in the form of gasoline taxes on EV vehicles. If you live in Arizona, Wyoming, Texas, or Arkansas, gas taxes as an EV owner might chip away at your long-term savings potential.
The national power grid: the biggest hidden benefit
One of the Biden Administration’s most ambitious goals is the modernization of our national power grid. Part of this process includes making 500,000 EV charging ports available to the public. This, along with the tax benefits being provided, is part of a growing federal investment into slowing climate change.
If our power grid infrastructure is modernized for EVs, potential owners will be more likely to make the switch. With more people buying electric vehicles, the purchase price will come down. Ultimately,
EVsare becoming more efficient and more cost effective—further proof that they're the future of the automotive industry.