Do You Save Money With Electric Cars?

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In most households, transportation is usually the second-largest expense after housing. With gas prices rising at unprecedented levels, many people have become open to driving electric cars. 

Electric vehicles provide many benefits, including environmental consciousness and money-saving options, but some people are still skeptical. If you’re on the fence about purchasing an electric vehicle, we will break down several ways you save money with electric cars.

Let’s get started!

Rising gas prices: how it affects our transport

Before we look at how electric cars save money, let’s better understand why we need electric vehicles. 

Many households are breaking their budgets to afford essential travel. As of March 2022, the cost of gas averaged $4.33 per gallon across the United States – a $1.50 increase since last year! The rising gas costs make electric vehicles an attractive alternative to regular cars. Everyone should follow through with a personal budget to save money and eventually buy an electric vehicle.

With the rising gas prices, electric cars offer a financial break. Electric car owners save around $14,500 on fuel costs by owning and operating electric vehicles for 15 years. This statistic shows that you save almost $1,000 annually while owning an electric car, which is a viable option if you want to save money. 

Why should you get an electric car?

Now that you know why you should get an electric car, let’s look at some benefits of owning an electric vehicle and how to save money with it. 

Save money on fuel with an electric car

One of the top benefits of owning an electric car is the money you’ll save on fuel. For many people, one of the significant day-to-day expenses is energy cost. However, if you own an electric car, you’ll significantly reduce your daily transportation expenses. 

Let’s compare the cost of operating gas-run and electric vehicles. It takes $485 per year to use an electric car in the United States. In contrast, the average cost of operating a gasoline-powered car is $1,117 per year.

Apart from operating costs, electricity costs are much more stable than gasoline costs. Over the last ten years, fuel costs have ranged from $1.50 to $4.00 per gallon, and there is currently a steady increase in gas prices.

Comparatively, electric cars generally cost $1.20 to go the same distance. A consistent electricity rate makes electric vehicle costs predictable and budget-friendly. 

Lower costs throughout the years

You’ll save more money in the long run with an electric car. The cost of recharging an electric vehicle is much more affordable than operating a gas-run vehicle. Refueling your car has become more costly over the years, especially since the gas prices keep fluctuating. 

If you’ve installed solar panels in your house to save money, you can use this electricity to recharge your electric vehicle. Thus, you’ll get tax benefits and increase your savings. 

Reduce your carbon footprint

Many people opt for electric vehicles because of environmental concerns. Electric cars are a great way to reduce your carbon footprint instead of gasoline-powered cars. 

A traditional gas-fuelled vehicle with a 22-mile-per-gallon drive range emits 4.6 metric tons of carbon dioxide annually. In comparison, non-hybrid electric vehicles emit 0 tons of carbon dioxide or other greenhouse gasses, making them much more environmentally friendly. 

Low maintenance costs

Mechanical gasoline-powered cars have multiple moving parts, meaning several maintenance costs over the years. Whether you have to change your fluids or carry out frequent oil changes, the upkeep costs add up the longer you own a car. 

On the flip side, you won’t have to worry about spending a lot of money on maintenance with electric cars, as they last longer than their gasoline-run counterparts and experience less wear and tear. 

Electric vehicles don’t have many components that need to be replaced, so you’ll also save money on maintenance costs.

Higher efficiency and lower costs

If you don’t want to purchase a fully electric vehicle, you can still save money with a plug-in hybrid electric vehicle.

Although a hybrid vehicle uses gasoline and electricity, you will still have lower costs because hybrid electric vehicles use fuel more efficiently than gas-powered vehicles. Most hybrid electric vehicles use 30% to 60% less gasoline than conventional vehicles. 

High-powered performance

Electric vehicles operate smoothly and quietly since there is no exhaust system present. Electric cars are much quieter than traditional gasoline engines, so you’ll enjoy a relaxing ride and less noise pollution. 

The lack of an exhaust system also means no power source will be wasted. You use the most energy in traditional vehicles from constant stopping and going and from waiting in traffic. 

You won’t have to worry about energy wastage with an electric car. All vehicle components work more efficiently for a high-quality performance. 

Lower utility costs

Using an electric car can help you save on utilities. Depending on your state, some utilities offer lower costs for vehicle charging during off-peak hours. If you don’t have solar panels, you can use these off-peak savings to charge your car and save money. 

Most electricity providers help you save money by:

  • Lower time-of-use rate options for vehicle charging
  • Discounts based on kilowatt usage for electric cars

These rates will help you reduce the daily costs of charging your car, saving you money in the long run.

What are the limitations of buying an electric car?

While you can save money in multiple ways with electric cars, you need to cross one major financial hurdle before committing to an electric vehicle. 

Although many electric cars help you save money in the long run, the initial cost of purchasing an electric vehicle is higher than a traditional gas-run car. It’s important to consider this cost before buying one.

Key takeaways

You might be wondering, “Do you save money with electric cars?” The answer is yes, you do! 

Consider your budget before purchasing an electric vehicle. Despite the high initial cost, electric cars help you save money in the long run. You will save money on maintenance, utilities, and average daily expenditures. 

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