To buy, or not to buy, to paraphrase Shakespeare, is the question many drivers are asking regarding electric vehicles. What should you do?
You can look at any side of the argument for or against EVs and find something that makes sense to you. This part of the automotive market is growing despite slower growth than in 2023. Driving an EV can be a significant change with the need for a dedicated at-home charging location, rising auto loan rates, glitchy and often hard-to-find charging stations, and higher prices. Still, all-electric models should make up nearly 10% of the entire automotive market in 2024, which is an increase from 7.6% last year.
If you’re considering one of the many new electric vehicles, you’ll want to consider a few things first.
Electric trucks aren’t there yet
Unless you want to drive an electric truck the same way you might an electric car or SUV, you’ll be sorely disappointed. Electric pickup trucks offer decent towing power compared to their combustion counterparts, but these electric pickups have a serious problem. The driving range drops precipitously when a trailer is attached to an electric truck. This can be a serious challenge for anyone looking to switch from a regular pickup for their work needs to an electric model.
Tax credits are much better than before, but fewer models qualify
The Inflation Reduction Act is written to entice automakers to build and source components for electric vehicles from approved countries. This means batteries with many of the elements from China don’t qualify for the tax credit. The number of vehicles that now qualify for the full federal EV tax credit is now less than 15 models.
Although only a few vehicles qualify for the full tax credit, most EVs qualify for a portion of this credit. Instead of taking the credit when filing your tax return, you can take it right at the dealership. This means you instantly reap the benefits of qualifying for this credit and can quickly reduce the price of your new EV.
Many states offer excellent tax benefits as well
In addition to the federal credit, some states offer significant savings for drivers who switch to an EV. Some electric vehicles could be driven off the lot for as little as $10,000 this year. In addition to the added incentives, some companies, such as Tesla and GM, have slashed prices on their EVs. The spread between the cost of EVs and gas-powered models has shrunk with these price cuts and added local incentives.
The somewhat cooled demand for EVs has changed sales strategies, with many dealers offering impressive discounts and rebates to entice drivers to switch to an EV. Additionally, some credits for used EVs make it even easier to buy a model that’s a few years old and was likely a lease return.
Some of the state incentives provide impressive credits for owners who trade in a gas-powered vehicle in favor of a new EV. In Colorado, this credit is $6,000 toward the new vehicle, which can be stacked on top of other available incentives.
More chargers are available than ever before, and more are coming
Eventually, we’ll see charging stations for electric vehicles on every corner, much the way we see gas stations today. Unfortunately, that’s not the case yet. Still, President Biden recently announced $623 million in new grants to fund 47 EV charging projects in 22 states and Puerto Rico. Additionally, several automakers struck a deal with Tesla last year to access the Supercharger network. This brought about a new charging standard, which gives EVs the ability to connect to these Tesla stations and enjoy more charging options.
With more chargers available and on the way, EV drivers can feel a little more confident taking a road trip in their electric car, truck, or SUV. Because of the new deal with Tesla, GM, and Ford are supplying EV owners with adaptors for the connectors and will start integrating the Tesla plug on new models beginning in 2025.
Should you make the switch to an EV?
Electric vehicles are becoming a bigger part of the automotive world. Currently, three out of every four EVs sold go to new drivers who switched from a gas or diesel-powered vehicle. Automakers are making more EVs than ever before, and once the early adopters have their vehicles, we’ll see the growth level off in this market as current drivers wait to make the change until they must.
If you’re looking for your next vehicle, it could be powered by electricity. Right now, electric vehicles come with more incentives and credits than ever, making it easy to see the financial benefits of switching to an EV.
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