How Electric Vehicles Save Money

If you’re shopping for a car on a budget, you’re probably doing a lot of research to find the best price. Glimpsing dealership websites may lead you to believe that a gas-powered vehicle is the most affordable choice. While it’s true that the upfront costs of gas vehicles tend to be cheaper, it might be smart to invest in an electric model. You’ll not only reduce your ecological footprint and enjoy faster acceleration rates but also see significant savings over the long run. Dan Cummins Chevrolet Buick of Paris is here to explain how electric vehicles save money.

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Lower Fuel Costs for Electric Vehicles

One of the most significant ways electric vehicles save is through fuel costs. According to one source, the average cost to operate an electric vehicle is $485 per year compared to $1,117 per year for a gas-powered vehicle. This savings of more than $600 allows you to put more money into vehicle maintenance or cover other living expenses.

In addition to being more affordable, electricity tends to have more stable rates. This predictably helps drivers budget accordingly and enjoy the savings they see over the long term. Over the past 10 years, gas prices have ranged anywhere from $1.50 to $4.00 per gallon. Even when gas prices were lower, fuel prices couldn’t compete with cheaper electricity rates. On average, drivers of electric vehicles have paid around $1.20 to travel the same distance that a driver of a gas-powered vehicle could travel on one gallon of gasoline.

Here’s an example to help you better understand the savings. Imagine that you own an electric vehicle that has an average performance of 100 miles per 30 kilowatts per hour (kWh). If the current electricity rate is $0.12 per 1 kWh, you will pay about $1.00 to travel 36 miles. Now, consider that the average performance of a gas-powered vehicle is 22 miles per gallon. If you spent the same $1.00 on gas, you would only be able to drive 18 miles. If you owned an electric vehicle, you would double your mileage while keeping fuel costs the same.

Lower Fuel Costs of Plug-in Hybrid Electric Vehicles

A plug-in hybrid electric vehicle (PHEV) primarily runs on battery power. Still, a PHEV features an internal combustion engine that switches on when the battery dies. Some drivers question the cost savings of a PHEV because it requires you to pay for both electricity and traditional fuel. However, it’s important to note that while a PHEV uses both energy sources, it operates much more efficiently than a gas-powered vehicle. The internal combustion engine of a PHEV uses anywhere from 30% to 60% less gasoline, meaning you can save on fuel costs. Additionally, the internal combustion engine of a PHEV recharges the car’s battery so you can save on electricity.

Fewer Maintenance Requirements for an Electric Vehicle

Anyone who’s owned a gas vehicle knows how much maintenance they can require. No wonder a traditional gas-powered car can have many problems because of its sheer number of moving parts. All of the spark plugs, oil filters, radiator, transmission, and exhaust systems mean that something is bound to go wrong. Fortunately, the lack of an internal combustion engine in an all-electric vehicle means significantly less maintenance.

Fewer parts to break means you don’t have to spend as much on repairs. Additionally, the regenerative braking system prevalent on most electric vehicles saves the brake pads and rotors from costly replacement. Even if you get a PHEV instead of an all-electric vehicle, you’ll have fewer maintenance costs because the internal combustion engine runs less.

Tips for Saving With an Electric Vehicle

While electric vehicles tend to cost less in the long run, you can maximize your savings with the help of these tips:

• Save up for a down payment. Though electric vehicles are more affordable over the long term, their upfront costs tend to be higher. To ensure you can afford the down payment and interest payments, begin by budgeting and building your savings account.
• Buy a more affordable model. A more affordable model will reduce your upfront costs, but it can also help you save more over the long term than if you were to buy a higher-end vehicle.
• Adhere to maintenance recommendations. You can avoid the need for unnecessary repairs by adhering to the manufacturer’s maintenance recommendations for your model. For example, you might get tire rotations or cabin air filter replacements when the car reaches a certain number of miles.
• Take advantage of warranties. If something goes wrong with your electric vehicle, you might not have to pay for repair costs out of pocket. Be sure to take advantage of any valid warranties to save money.
• Shop around for insurance. While electric vehicles can be more expensive to insure than a gas-powered vehicle, you can save by shopping around. Certain providers offer discounts if you drive an all-electric or hybrid vehicle.
• Take advantage of tax credits. If you buy a new electric or hybrid vehicle, you can enjoy a federal tax credit of up to $7,500. States also have rebate programs that encourage drivers to go electric.
• Save through your utility company. Drivers who fuel up at home can save through their utility companies. Check your utility provider for programs to get per kWh discounts or reduced rates for charging your vehicle during off-peak hours.
• Generate your own electricity. You can lower fuel costs and reduce your ecological footprint by generating your own electricity. Solar panels allow you to harness the sun’s energy and may also make you eligible for additional tax credits.

Despite their higher upfront costs, electric vehicles are a wise investment for those looking to save in the long run. You’ll spend less on fuel and maintenance while enjoying improved efficiency and faster acceleration. Contact Dan Cummins Chevrolet Buick of Paris today if you’re ready to start shopping for your dream electric vehicle. We’re eager to help you find a car that suits your budget and driving preferences.

Tags: Electric Vehicles, EUVs, EVs
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