Electrical vehicles have a lot of advantages both financially and from a sustainability perspective, but is there room in your budget for one? After all, car repairs are a great investment on traditional cars, but tend to cost a lot more for electric and hybrid vehicles, and why shell out money for a new car if your old one still works? Even if you’re committed to the environmental benefits of going electric, the financial factor weighs heavily.
With proper planning, you may be able to reduce the costs associated with an electric vehicle. Here are a few factors to consider as you balance your budget.
There are a lot of incentives available to help you purchase an electric or hybrid vehicle. New electric vehicle purchases can qualify for a federal income tax credit amounting to a maximum of $7,500. Depending on the car, this is the equivalent of a total cost reduction of about 20%. You won’t find savings like that on a new car in any other sector.
A Loan Can Help
If you’ve got a strong credit history, it’s worth considering taking out a loan on an electric vehicle. You’ll already be saving so much in rebates and by powering your car with electricity rather than fuel that you’ll be able to pay off the loan faster than on a traditional car. And of course, you can shop around for your loan. For example, if you bank with State Farm, you can get a decreased interest rate by also taking out a loan with them. This will help you save further.
Electric Is A Budget Fuel
Besides insurance, one of the biggest expenses associated with car ownership is buying fuel. Unfortunately, gasoline is pretty expensive so this can really put a dent in your overall budget. On average, you can save $3,000 a year on fuel by owning an electric vehicle. Sure, you’ll be paying for a new vehicle, but you’ll be able to funnel your old fuel budget directly into those car payments.
As more electric vehicles hit the market from different manufacturers, there will be a wider price range within the field. This also has the potential to bring down the price of electric vehicles overall because competition is good for pricing. Tesla, in particular, is pushing the limits of what can be done within the electric vehicle field, but they’ve got a lot of market share to claim from more familiar automakers.
Though it may be greener – environmentally and money-wise – to stick with your old car in the short term, as that vehicle ages, it’s best to stop pouring money into an increasingly inefficient vehicle and make the shift to electric. Cars are built to last, but they only last so long. Getting into the electric vehicle market will have long-term financial benefits, so don’t hesitate to cash in.