There are countless reasons electric vehicles have made their way to the front stage in the automotive industry. EV’s require minimal maintenance, offer tax breaks, and significantly reduce your carbon footprint on the environment. Or, perhaps you want to join the massive EV movement simply because you love the sleek look of a new Tesla or the virtually instantaneous peak torque and acceleration. EVs are also convenient to own; EV drivers avoid traffic in the HOV access lane, avoid gas stations, and do not require visits to an emissions testing station. Whatever your reason may be, EVs are taking over for good reason.
The graph below demonstrates the sharp rise in sales of EVs over the past decade:
While the pros are heavy, it is vital to weigh all factors when deciding if an EV is right for you or your family. Buying an electric car can be an exciting but confusing process. It is important to know what kind of car you are looking for, and where you will charge it.
Below are the top five-bought EVs in the United States during 2021
- Tesla Model Y
- Base Price: $58,990
- Tesla Model 3
- Base Price: $44,990
- Ford Mustang Mach-E
- Base Price: $42,985
- Chevrolet Bolt
- Base Price: $32,495
- Volkswagen ID.4
- Base Price: $40,760
Examining the most frequently bought cars is a great starting point to finding what’s right for you. There are thousands of reviews for both new and used vehicles. Research is key.
How many people will be driving in the EV? Is it just for you, or is this meant to be a family car to carpool lots of kids to soccer tournaments? Does your work or living space offer free EV charging? Are you looking more for a luxury statement car or a durable family car?
Once you iron out your motives, finish your research, and complete any test-drives, it is time for the next steps.
To Buy or to Lease: That is the question.
This is one of the most crucial questions to evaluate. There are upsides and downsides to each, but one option may offer significantly more upside to your life.
The Major Advantages of Leasing
-You drive the car during its most trouble-free years
-You’re always driving a late-model vehicle that’s usually covered by the manufacturer’s new car warranty
-The lease may include free oil changes and other scheduled maintenance
-You will have more vehicles to choose from with the most up-to-date safety features
-Lower monthly payments than if you were obtaining financing to purchase the car
-Less cash required at drive off
-Lower repair costs
The Major Advantages of Buying an EV
-Typically, buying a car will cost less in the long-run.
-It offers you more flexibility on the road without the mileage limits that come with a lease.
-You also have the option to customize your car to fit your lifestyle and preferences.
Furthermore, you don’t have to deal with the fine print of leasing contracts; you can buy an EV with more ease. Here are a few options:
- Through a dealership, which typically offers on-site financing through their lending partners.
- Another method would be through the manufacturer on their website, which potentially includes additional incentives.
- Thirdly, banks and credit unions (for example, University credit unions) offer competitive EV loans to account holders through their branches or websites. This source of financing offers competitive rates and the possible convenience of having your car loan and banking services with a single institution.
Rebates, Tax Credits, and Incentives?
There are a number of incentives, tax credits, and rebates which make buying an EV even more attractive.These programs prove you can make decisions that are both great for the planet and for your wallet. Below are just a few of many incentives:
- California Clean Vehicle Rebate Project: promotes clean vehicle adoption in California by offering rebates from $1,000 to $7,000 for the purchase or lease of eligible EVs.
- Clean Cars 4 All: a program that focuses on providing incentives through California Climate Investments to lower-income California drivers
- Up to $9,500 towards the purchase of a new EV
- $2,500-$7,500 Federal Tax Credit
- Credit amount depends on the car’s battery capacity
- Santa Monica Free Parking and Charging
- EVs with the proper “Clean Air Vehicle” decals may park free of charge at city of Santa Monica on-street parking meters
- 30% off home charging station plus installation costs (up to $1,000)
- $500-$2,000 rebate to customers in Burbank purchasing a Level 2 EVSE
- $500 to residential customers who install wall-mounted chargers within the LADWP service area.
- Discounted electricity costs for EV owners by LADWP
The next time you are considering purchasing or leasing a new vehicle, be sure to consider EVs in the mix– along with all their incentives. The market is growing more and more every day, with more options and perks growing alongside it. The emergence and popularity of this market ultimately proves you can make decisions that are both beneficial to your wallet, your lifestyle, and the planet.
Sources
https://nytimes.com/article/electric-vehicle-ev-buying-guide.html
https://www.consumerreports.org/hybrids-evs/electric-cars-101-the-answers-to-all-your-ev-questions-a7130554728/
https://www.caranddriver.com/features/g36278968/best-selling-evs-of-2021/
The information contained herein is intended to be used for educational purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax or financial advice. Please consult a legal, tax or financial professional for information specific to your individual situation.
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