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Budget Cheat Sheet For EV Ownership

Written by

CarParts.com

Staff Writers

Updated on May 13th, 2022

Budgeting is a must for the average American. Aside from allocating a budget for groceries, rent, and electricity bills, most Americans also have to set money aside for gas.

Whether you're thinking of using an EV as your main ride or as a secondary vehicle, this cheat sheet is for you.

Budget Cheat Sheet For Electric Vehicles

Getting an EV can be intimidating, especially for first-time buyers who have little to no idea of what it can cost them in the long run. Many long-time EV owners who want to get a second EV or replace their ride also find shopping overwhelming due to the way new technology and recent developments have impacted the market.

Whether you identify with the former or the latter, this comprehensive guide will help you get the full picture when it comes to getting and maintaining an EV while on a budget.

Buying an Electric Vehicle

Have your heart set on getting a brand-new EV? Here’s what you need to know about buying it and keeping its purchase price low.

Average Purchase Prices

A car is a hefty investment. So why not go for the problem straight away and lower the sticker price?

Tax Credit Rebates

You can potentially save thousands of dollars by taking advantage of federal, state, and local tax credits.

EV Incentive Program

The US federal government has a tax incentive program for EVs. The Qualified Plug-in Electric Drive Motor Vehicle Tax Credit applies to both all-electric and plug-in hybrid vehicles that meet the following criterion.

Bought after December 31, 2009
Equipped with a traction battery
Battery capacity is at least four (4) kilowatt hours (kWh)
Recharges through an external plug-in source
Has a vehicle weight rating of up to 14,000 pounds
Meets emissions standards

The tax credit is $7,500, but the exact amount you can get will vary according to the EV model you buy.

Furthermore, the rebate only applies to car manufacturers that have sold less than 200,000 EVs total. Once the company has reached that point, the tax credit will be gradually phased out.

So far, Tesla and General Motors are the only manufacturers with fully phased out tax credits. Toyota has almost reached that 200,000 mark as well.

State and City Tax Credits

In addition, many states and cities offer their own tax credits. Here are some examples.

California gives gross annual income-based rebates for buying or leasing plug-in hybrid EVs and autonomous EVs.
Residents and business owners in the San Joaquin Valley with qualified EVs can get the Alternative Fuel and Advanced Vehicle Rebate.

Tips on How to Reduce an EV's Purchase Price

Before you sign any deals, consider these tips to get your EV's price tag as low as possible.

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Take advantage of tax credits. If your state or city offers tax credits, consider going for an EV that's eligible for them.
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Choose affordable models. There's a wide array of budget-friendly EVs on the market, so you won't run out of options. We'll cover them shortly.

Affordable EV Models

Here are some of the most affordable models for general use, luxury, and plug-in hybrid electric vehicles (PHEVs). Keep in mind that PHEVs are not pure EVs–they have an internal combustion engine that can recharge their battery pack.

General Vehicles

Luxury EV Models

Plug-in Hybrid Electric Vehicle (PHEV) Models

Getting an Electric Vehicle on a Loan

Most people do not pay for their new car up front. Instead, they get a loan from the bank and pay it back over time. The same applies to EVs, and there’s a special type of loan you can take advantage of if you’re getting an electric car.

Green Auto Loan

This is a car loan for vehicles with below average or zero emissions. It works just like other loans. A green auto loan has perks like lower interest rates, which they achieve via:

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Lower base interest and/or
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Rate discount

Many lenders offer longer repayment terms on green auto loans to reduce the monthly payment on green vehicles.

Green auto loans are often offered by a local credit union. Other lenders include EV Life and Bank of America.

The best green vehicles have a SmartWay rating.

Owning an Electric Vehicle

Once your EV is parked in your garage, here are the costs that you'll have to prepare for to keep it in great shape.

Charging Loan

Electric cars have battery capacities measured in kWh and can typically reach three or four miles per kWh. As of March 2022, the US Energy Information Administration (EIA) predicts that the average price of residential electricity will be 14.26 cents per kWh throughout the year. The exact price varies between states.

Charging at a DC fast charger station is more expensive than charging at home. It can cost as much as topping off half the tank of a fuel-efficient gasoline vehicle.

EV charging solutions fall under three levels. Levels 1 and 2 can be installed at home, while Level 3 (DC fast charging) is usually what’s in public charging spots. Learn more about how much EV charging stations cost with this comprehensive guide to charging your EV at home and on the go.

Tips on How to Reduce Your EV's Charging Costs

You get more bang for your buck recharging your EV compared to topping up a comparable vehicle's fuel tank with gasoline or diesel. You can get even more savings with these tips and tricks.

Charge at Home

A level 1 charger will suffice for most owners as long as you charge your EV overnight. You also don’t have to fill the entire battery. In most cases, a half “tank” will get you to where you need to go (unless you’re going on an out-of-town trip).

Charge Overnight While You're Sleeping

Electricity rates are lower during off-peak hours, so check what the off-peak hours in your area are. You can use slower but relatively affordable level 1 chargers for overnight charging.

Host Your Charger on a Home Charging Sharing Network

By sharing your home charger, you can earn money to offset the cost of your own charging bill. You can also hook up with other hosts when you need to recharge your EV on the go.

Look for Discounts, Tax Credits, and Rebates in Your Area

This is highly recommended if you want a level 2 charging station because they can reduce the upfront cost of a station. Check with your state, air district, and local utility companies if they provide rebates.

Invest in Solar Panels

Take advantage of that solar power and recharge your EV for free, especially during peak electric usage hours.

Electric Car Maintenance Costs

EVs generally have lower maintenance costs than gas or diesel-powered vehicles. They have fewer moving parts that need replacement when they get worn out.

Battery packs can be costly to replace, but they generally last many years and degrade gradually instead of abruptly. This applies to both hybrid and all-electric vehicles.

Gas Only

Plug-in Hybrid

An Electric Plug-in (EV)

First 50k Miles

$1420

$1070

$580

First 100k Miles

$4420

$2630

$1970

Lifetime (200k Miles)

$12290

$5920

$6280

EV Parts That Need The Most Maintenance

These are the parts of your EV that are most likely to need replacement over time.

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Cabin air filters
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Friction brakes
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Tires
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Suspension components, such as shock absorbers
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Steering components, such as tie rod ends

If you want to enjoy even bigger savings on your electric car maintenance bill, we have an article on maintenance tips to keep your hybrid or EV running right.

Depreciation

Another way to better bring an EV's cost in line with your budget is to get a pre-owned vehicle with a depreciated price. The big savings from pre-owned EVs can make it very appealing.

Like all vehicles, the value of most EV's depreciates sharply after a few years of ownership. If you can confirm it's in good shape, a pre-owned electric car can prove itself a good buy. Tesla EVs depreciate at a slower rate, so don't be surprised if older Tesla cars remain pricey.

No matter how well their previous owners maintained them, used vehicles can develop issues that will require repair. But don’t worry; you just need to know what problems to watch out for when shopping for a pre-owned EV. That way you can avoid them or resolve them immediately.

The Bottom Line

An EV is definitely worth the big initial investment and will pay for its cost with big savings on fuel and maintenance over the years. And with the tips and tricks above, its price tag can become much less daunting than it looks at first glance.

Between affordable models, tax credits, green loans, and other “cheats,” there’s no reason to not get an EV!

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For over 20 years, CarParts.com has been a leader in the e-commerce automotive aftermarket, providing collision, engine, and performance parts and accessories. With over 50 million parts delivered, we've helped everyday drivers across the contiguous United States find the right parts to keep their vehicles on the road.

With a focus on the end-to-end customer experience, we've designed our website and sourcing network to simplify the way drivers get the parts they need. Our vehicle selector and easy-to-navigate, mobile-friendly website offer customers guaranteed fitment and a convenient online shopping experience. And with our own wide distribution network, we bring the very best brands and manufacturers directly to consumer hands, cutting out all the brick-and-mortar supply chain costs to provide quality parts at a discount for our loyal customers. Combined with our 60-day return policy and satisfaction guarantee, CarParts.com makes it simple for customers to get parts delivered straight to their door. CarParts.com is headquartered in Torrance, California.

Budget Cheat Sheet For EV Ownership

Budget Cheat Sheet For EV Ownership

Budget Cheat Sheet For Electric Vehicles

Buying an Electric Vehicle

Average Purchase Prices

Tax Credit Rebates

EV Incentive Program

State and City Tax Credits

Tips on How to Reduce an EV's Purchase Price

Affordable EV Models

General Vehicles

Chevrolet Bolt EV

Hyundai Kona Electric

Hyundai Ioniq 5

Kia Niro EV

Kia EV6

Ford F-150 Lightning

Ford Mustang Mach-E

Mazda MX-30

Mini Cooper SE

Nissan Leaf

Volkswagen ID.4

Luxury EV Models

Polestar 2

Tesla Model 3

Plug-in Hybrid Electric Vehicle (PHEV) Models

Hyundai Ioniq Plug-In Hybrid

Toyota Prius Prime

Kia Niro Plug-In Hybrid

Ford Escape Plug-In Hybrid

Hyundai Tucson Plug-In Hybrid

Getting an Electric Vehicle on a Loan

Green Auto Loan

Owning an Electric Vehicle

Charging Loan

Tips on How to Reduce Your EV's Charging Costs

Charge at Home

Charge Overnight While You're Sleeping

Host Your Charger on a Home Charging Sharing Network

Look for Discounts, Tax Credits, and Rebates in Your Area

Invest in Solar Panels

Electric Car Maintenance Costs

EV Parts That Need The Most Maintenance

Depreciation

The Bottom Line

About CarParts.com