Are you looking to save money? Who isn't? Well, one of the best ways to do just that is to purchase an electric car. There are many ways in which an electric car can keep your wallet full and healthy, but some of them may not be very obvious. Not only that, but an electric car has a much less harmful effect on the environment, and they are the perfect road trip vehicle.
If you are skeptical of how much money an electric car can actually save you, you may want to take a look at the seven reasons below.
1. Commuting Costs
Based on information from GoBankingRates, when using an average gas price of $3.53/gallon, a person will save about $1,600 per year on fuel costs. In addition, statistics by Experian show that savings due to purchasing an electric car can amount to three months worth of paying an auto loan of up to $467. For a commuter who travels less than 50 miles per day, an electric can provide significant savings. For a commuter driving significantly over 50 miles per day, an electric car may not be the best option.
2. Rebates and Tax Credits
A person may realize up to $7,500 in tax rebates when buying an electric car. This money is given by the U.S. Government to convince more people to convert over to electric car, which will decrease the U.S. dependence on foreign oil. In addition to the rebates, some states offer additional incentives to those who purchase electric cars. For example, in some states, the grand total for rebates and credits may reach the level of up to $10,000. This high level of incentives is given because of the high upfront costs associated with electric cars. It helps people deal with the costs associated with electric cars that are not present in competing non-electric cars.
3. Lower Maintenance Costs
The maintenance costs for electric vehicles may be up to thirty-five percent lower than non-electric vehicles. This is because electric vehicles do not have as many moving parts (fuel systems, belts, valves, exhausts, a radiator, transmission, spark plugs, etc). Thus, they have a lower incidence of car problems that need professional auto work. The maintenance of an electric vehicle is mainly in its tires, suspension, and brakes. Consequently, there is a smaller amount of associated maintenance work, which will save drivers a lot more money in the long term. It's also useful to note that electric cars don't require the nagging reoccurring costs of oil changes.
4. Electric Car Prices Are Decreasing
Comparatively, electric cars are pretty expensive. For example, a Nissan Leaf, even after rebates and tax credits, is going to cost around $22,000. Although size and utilities are similar to the Nissan Versa Note, the Note costs significantly less at about $15,000. Either way, the costs of electric cars is decreasing, making them more affordable and thus more popular. One of the most affordable electric cars is the Mitsubishi MIEV, which can be had for under $20,000, but it also comes with a reduced gas mileage of 70,000 miles. Alternatively, one could buy a Tesla electric vehicle for a price in the range of $35,000 to $40,000. Of course, as more advancements in technology and other improvements are made, the cost of electric vehicles may eventually come down to the price levels of their non-electric competitors. The overall trend has been that the price of electric cars has come down as more manufacturers have started creating them, which naturally creates lower prices due to competition.
5. Lower Sales Tax
GoBankingRates shows that Green Fleet Magazine estimates sales tax to be about $.50/gallon on a tank of gas. This may allow the average driver to save about $5 if they fill up 10+ gallons. These savings may seem small at first, but some people may fill up even 15-20 gallons. These small savings add up to a large sum of money at the end of the year. For example, saving $5 each week results in about $250 saved by the end of the year. This can be a substantial form of savings over the lifetime of a vehicle. Moreover, there are some states, such as Washington, that offer near zero percent sales tax on a car purchase, which doesn't include rebates and tax credits from state and federal governments.
6. Lower Incidence of Impulsive Convenience Store Buys
For those who go inside to pay for gas, less trips to the gas station means that there's a lower amount of spending on things such as food, drinks, and other random items. Although this saving is less significant than the others, it can amount to a sizeable amount of money by the end of the year.
7. Gas Price Rises Are No Longer a Big Deal
According to GoBankingRates, gas prices have increased by 143.4 percent since the year 2000. This has caused an increase of 46.9 percent in the average cost of energy, according to the Department of Energy. Fortunately, future rises in gasoline have significantly less impact on those who have the benefit of charging their electric cars at home.
One final benefit to having an electric car is that they aren't so much on police radar for getting a ticket since they aren't known to be speedy. However, if you do happen to get a ticket, you can take a defensive driving course to have the fine reduced and even have the points taken off of your driving record. That way you can keep your driving record as clean as your Eco-friendly car!