3 Things to Consider Before Buying an Electric Vehicle

Electric car ownership is on the rise with more people opting to buy them than ever before. In 2020, global sales of electric vehicles increased by 43%. Meanwhile, overall car sales declined due to the COVID-19 pandemic. UBS predicts that by 2025 electric vehicles will make up a whopping 20% of all new cars sold globally.

Have you ever considered buying an electric car? If yes, now is the time. Besides being environmentally friendly, there are also many other incentives related to using an electric car. These incentives are offered by both governments and private organizations to encourage the adoption of electric vehicles into the marketplace. In this article, we will examine these incentives alongside other avenues for getting an amazing deal on electric vehicles (EV).

Incentives and Rebates for Buying Electric Vehicles

While EVs are constantly improving, they are still quite expensive to manufacture. They are generally more expensive than their gas-powered counterparts. Fortunately, you can secure financial help in the form of incentives and rebates from governments, car manufacturers, and electricity companies. These incentives can be placed in three categories:

Cash incentives – States and local governments, as well as electricity companies, often offer cash incentives to owners of electric vehicles.

Tax credit – If you purchase your EV from a qualifying manufacturer, you’re entitled to a $7,500 tax credit.

Local perks – Local perks include free charging, free parking, reduced electricity rates, assistance with purchasing a home charger, and access to carpool lanes.

Lease Vs. Purchase

If you want to own an EV, you do not necessarily have to purchase it outright. In fact, leasing an EV can be more beneficial than purchasing it as:

  • EVs depreciate faster than their gas-powered counterparts. The average EV vehicle will have depreciated by 52% over three years.
  • EV technology is evolving at a rapid rate. Because of this, they become outdated quickly.
  • EV batteries are a far way off from being at their best. Some of them will lose their ability to attain full charge after a few years of use.

Because of these reasons, consider leasing an EV instead of purchasing it. The drawback to this is that not all manufacturers offer this option. If you’re particular about the EV you want and the manufacturer does not offer a lease option, you will have no choice but to purchase the vehicle.

Protect Your EV

When you lease a car, whether an EV or traditional, there is usually warranty coverage for not less than three years of the lease contract. In such an instance, you would not need to purchase an extended warranty. However, if you purchase an EV with a low down payment, make sure to purchase gap insurance, considering how badly EVs depreciate.

To learn more about protecting your EV, contact us at ISU Wissink Agency today. We can help you determine the best way to protect your new vehicle.