Savings Archives - Easy Charge Up

Total cost of ownership – electric vehicles already below…

July 19, 2018
by Steven Sherman

According to the 2017 AAA study “Your Driving Costs“, an annual study which looks at the total cost of owning a vehicle, electric vehicles cost $8,439/year to own and operate and are already cheaper than the average vehicle ($8,469/year). That gap will only grow as the price of batteries and other supporting technology continues to drop.

Ordered least to most expensive, the results are:

Small sedan – $6,354
Small SUV – $7,606
Hybrid vehicle – $7,687
Medium sedan – $8,171
Electric vehicle – $8,439
Average vehicle – $8,469
Minivan – $9,146
Large sedan – $9,399
Medium SUV – $9,451
Pickup Truck – $10,054

To estimate the overall cost to own and operate a new vehicle, AAA evaluated 45 2017 model-year vehicles across nine categories and focused on mid-range, top-selling vehicles. AAA’s annual driving cost is based on a sales-weighted average of the individual costs for all of the vehicle types. Factors considered include: depreciation, fuel, insurance, maintenance, financing, license, taxes, and registration, and tires.

Electric vehicles have inherently lower fuel fueling costs given the lower cost of electricity (equivalent to about $1/gallon) and significantly better on-board conversion efficiency.

Without an internal combustion engine and its ~1000 moving parts, maintenance costs are also near zero. No more oil, spark plugs, timing belts, air filters, etc. to change.

Depreciation, however, is still quite high for electric vehicles. This is something expected to lower over time as electric vehicles become more accepted and make their way into the mainstream.

Electric vehicles already have many compelling benefits that an internal combustion engine can’t compete with (at-home gas station, instant torque and ludicrous acceleration, near zero maintenance, “always-on” connectivity, etc.); it will be exciting to watch their adoption explode as the economics catch up as well.

General Information

Free Money

July 13, 2018
by jpdean

Advanced technology generally costs more than outgoing approaches especially in the transportation realm. Acknowledging this fact of life, our munificent federal government instituted tax credits for those who purchase or lease battery-electric (BEV) and plug-in hybrid (PHEV) vehicles. While the PHEV dollar amount depends on battery size, all BEVs qualify for a generous $7500 credit.

The fine print limits this give back to each manufacturer’s first 200,000 sales. Tesla and Chevrolet are closing in on that figure so, if a Model 3 or Bolt EV are on your shopping list, you must act fast to avoid disappoint come tax return time. Tesla buyers will be eligible for the full $7500 this year, then $3750 in 2019, then no federal credit starting in 2020. Extensions are theoretically possible, but don’t count on them occurring under the current Trump administration.

Green-minded states are also doing their share to encourage BEV ownership. The most generous example is Colorado which provides a $5000 credit to BEV buyers. Maryland offers $3000. California and several other states will lower your out-of-pocket expense by $2500.

While tax credits to offset the cost of home and business recharging infrastructure expired in 2016, there are bills before Congress to reenact them. Let your government representatives know how you stand on this vital issue.

Public utilities have done their part by offering electric rate discounts to customers who charge their electric vehicles during evening hours—when excess generating capacity exists—with or without a smart meter.

To read more on this subject, visit https://pluginamerica.org/why-go-plug-in/state-federal-incentives/

Another good source listing the 38 BEV and PHEV vehicles currently on the market and how their driving efficiency surpasses conventional alternatives is www.fueleconomy.gov

Savings

Top 5 States for Electric Vehicle Fuel Savings

July 4, 2018
by jpdean

When you switch from your current vehicle to an electric vehicle, you’ll save a ton of money on fuel costs because it is cheaper to drive a vehicle with electricity than it is with gasoline. If you want to find out just how much you could save, go to our savings calculator. But, if you live in one of these states below you’ll save more than anybody thanks to high gasoline prices and relatively low electricity costs.

Top 5 States for EV Fuel Savings

1. Washington ($1,034 savings per year)

With the second-lowest average electricity rates in the country (less than 1 penny more expensive than Louisiana), Washington makes a great place to plug in your car to get a charge. Not to mention, Washington averages the 3rd highest gasoline prices in the country, meaning the savings are big when you make the switch to an EV.

2. California ($958 savings per year)

California has very high gas prices (2nd highest in the country) so driving your gasoline-powered vehicle around is pretty expensive. California also has above average electricity prices, but those high gas prices mean that even with relatively high electricity costs you can still save nearly $1000/year just by driving electric.

3. Oregon ($940 savings per year)

Like Washington, Oregon has low electricity costs (7th lowest in the country) and the 5th highest gasoline prices. This adds up to some significant savings when you drive electric, over $900 year! For many in Oregon, the switch to an electric vehicle is very easy on the wallet even if the car is a bit more expensive.

4. Alabama ($909 savings per year)

Somewhat of a surprise on the top of this list as Alabama ranks as one of the lowest states in electric vehicle adoption. But, that doesn’t mean there aren’t savings to be had! With the 4th highest gas prices in the country and middle of the pack electricity costs, you can still save a ton by switching to an EV in Alabama.

5. North Carolina ($890 savings per year)

Just because North Carolina only just made the Top 5, doesn’t mean you’ll overlook the savings you can get! With the 15th lowest electricity rates and 6th highest gasoline prices, the savings are significant when you swap out your old gas vehicle for an electric vehicle. Plugging in your car in North Carolina instead of gassing it up will leave you with almost $900/year in extra cash!

The Rest of the Top 10

If you live in Utah, Arkansas, North Dakota, Illinois, or Montana you could still save big by switching to an electric vehicle. Even in Montana at #10, you could potentially save $780 annually by switching to an EV. That’s some serious cash put back into your pocket each time you plug your car in.

No matter where you live, you’ll still save money by switching to an EV. Even in Alaska where gas prices are extremely low and electricity rates are extremely high, you’d save almost $250/year by switching. Take a look at the chart below that shows the expected savings for each state.

A Note on Our Math

Just to clarify some of the numbers here, these are meant to show only the difference in fuel costs (gas vs. electric) for driving 12,000 miles per year (slightly below the national average). We also used average gasoline prices (regular gas) and average residential electricity rates for each state. We also used 30 MPG as the baseline for a gasoline vehicle.

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