Picking an EV can be overwhelming. 5 factors can inform your purchase — and help you save.
- There are many factors to consider when purchasing an electric vehicle.
- It can help to know your daily mileage and charging preferences and see if you qualify for tax credits.
- This article is part of "Getting Ready for Electric," a series of guides and practical advice for buying your next EV.
If you're considering an electric vehicle for your next car, there are various factors β like your anticipated daily mileage and charging needs β to consider.
Before buying, you may also want to think about EVs that are eligible for tax credits, which can lower the cost of your overall purchase.
Whether you go with a fully electric or hybrid model, there are plenty of new, used, and coming versions of this more sustainable car type to choose from.
In "Getting Ready for Electric," a series of shopping guides, Business Insider has been exploring the ins and outs of EV purchasing. Read on for the best tips for shopping for your next EV.
Battery ranges can vary depending on your driving habits and the climate of where you live.
While driving a few dozen miles daily in a moderate climate like Florida could open a buyer to a wide variety of EV options, someone who drives hundreds of miles daily and lives in a locale prone to colder temperatures may have fewer options overall, Scott Case, a cofounder and the CEO of Recurrent, a startup that tracks EV-battery health, previously told BI.
Newer models tend to accommodate long-haul driving needs better than older models, but they usually have higher price tags.
The federal government offers tax incentives on certain EVs, while some states have rebate programs that can lower the cost of your purchase.
Each of these discount methods has its own requirements and varies for new versus used EVs.
For example, to get a federal tax credit of up to $7,500, your new EV must have:
- A battery capacity of 7 kilowatt-hours or more.
- A gross vehicle weight rating under 14,000 pounds.
- Final assembly in North America.
- At least 50% of the minerals used to make it extracted, processed, or recycled in the US, or in countries with which the US has a free-trade agreement.
- A suggested retail price of no more than $80,000 for vans, SUVs, and pickup trucks, and no more than $55,000 for all other vehicles.
If you meet some but not all of the requirements, you may qualify for a smaller tax credit.
When it comes to used EVs, you may be eligible for a tax credit β 30% of the vehicle price, up to $4,000 β if you have:
- An EV that is at least 2 model years old, under $25,000, and sold by a licensed dealership.
- An income that doesn't exceed $150,000 if you're a joint filer or surviving spouse, $112,500 if you're a head of household, or $75,000 if you're a single filer.
- Not used this credit in the past three years.
For the EV-curious who don't want to pay for a yearslong commitment, the leasing approach could be the way to go.
Unlike bought EVs, leased ones fall into a different tax-incentive category because they don't undergo the same complex parts-sourcing process and don't have the same income caps.
Because of this distinction, dealerships get a $7,500 federal tax credit for each of their EVs. That's where the EV-leasing loophole comes in: Many dealerships are opting to pass these credits onto their lessees.
That extra cash, bumper-to-bumper coverage, and the ability to return the car at the lease's end are benefits worth considering when shopping.
The Department of Energy reported that there are more than 61,000 EV charging stations nationwide, double the number in 2020.
The majority of Americans β 95%, a Pew Research Center study found β live in counties with at least one of these stations.
If you're close to one of these stations, an EV could be a convenient and inexpensive alternative to a gas-powered car.
Though more of an investment, at-home EV chargers can make your green-car purchase that much more worthwhile, Jenni Newman, the editor in chief of Cars.com and an EV owner, previously told BI.
Not all public charging ports are compatible with all EV car models, and drivers have reported coming across broken chargers. An at-home charging setup could eliminate those issues.
EV owners can charge their cars within hours or overnight β a slower method that can prolong battery life β and end up with 250 to 300 miles of driving range without leaving their driveways.
These setups range in cost β from $250 to $7,000 β depending on your outlet location, the voltage your electric panel can support, and the speed at which you want to charge your vehicle.
Like with buying or leasing an EV, there are charger tax credits available from the federal government.
As automakers adjust their EV-manufacturing strategies, they're investing in more hybrid EVs and models at lower price points.
Because of these strategic changes in the car industry, you can expect a bigger menu of EV options for both fully electric and hybrid cars.