Is Now a Good Time to Buy an Electric Vehicle?

The world is getting more expensive. The cost of gas, electricity, and water is on the rise, and people are frantically searching for ways to deal with these rising costs. 

Filling up your tank with gas hit new highs this year, with AAA now estimating the average cost as $3.46 per gallon. 

It's no wonder that many are choosing electric cars to help them save money. 8 Billion Trees reported that over 600,000 electric cars were purchased in 2022 and another 56,000 in March 2023 alone.

Is now the right time to buy an electric vehicle (EV)? What are the benefits? How much does it cost? We’ll help you decide.

Electric cars, for all their positives, are quite expensive to buy. According to Kelley Blue Book, the average cost of a new electric car is $65,291 as of September 2022. This is an eyewatering amount, given the average cost of a new car in the US is $48,681.

If you choose to buy an electric car, you may qualify for a $7,500 Federal incentive. But this still leaves a significant gap, so do expect to pay over the odds if you want a new EV.

On the flip side, there is a significant saving on the cost of running the car. As mentioned previously, the average cost of fuel per gallon is $3.46, so filling up a tank is becoming more and more expensive.

US families are currently spending around $5,000 a year on gasoline, according to Yardeni Research. That’s a staggeringly high number, and it could well rise even more with fuel prices forecast to continue their rapid growth.

For the EV equivalent, it costs an average of around $56 a month to charge an EV from home, or $672 annually. This represents a big saving, especially if you consider how long you usually keep a car.

As EV technology continues to develop, the cars will eventually level out, and prices will drop, especially given the ban on the sale of cars with gas and diesel engines in areas around the world after 2030.

Due to the ever-growing electric car market, more and more companies are providing new and exciting financing options. Green Auto Loans are one of these – this is a financing option for those buying a zero-emissions vehicle and often comes with much lower interest rates.

Aside from that, buying an EV is predominantly the same as buying any new or used vehicle. You find the make and model you want, contact the dealer or seller, and follow the same steps.

To make life even easier, companies like Tesla have made it easier than ever to buy a car online. You can even customize and include add-ons during the process.

If you’ve ever watched Top Gear, or frequently read the work of Jeremy Clarkson, you’re   aware of some common stereotypes surrounding EVs. For example, with an EV, there’s a chance you’ll get stranded somewhere looking for a charger, or that you can only drive 20 miles before needing more juice.

This isn’t true. To prove it, below are some key details on how electric vehicles work and what to look out for:

1. Range

The average electric car typically can travel between 150 - 300 miles before it needs to be charged. This is usually more than enough for casual drivers. The range will differ for vehicles of a certain size, model, and weight – some can travel up to 380 miles, while others may only stretch to 150.

2. Cost

The price of electric cars is currently through the roof. This could be due to the fears many face of being priced out of buying gas. However, even with the increased cost upfront, you may save money in the long run, as they are far cheaper to run than the gas and diesel alternatives.

3. Charging 

There are two ways to charge your car at home - either use the slow charger you’re given with the vehicle or have a wall box installed. The former method can take around 24 hours  to charge, which isn’t ideal. 

For fuel on the go, you can use an app like PlugShare to show you the fastest charging points near you. These fast chargers usually charge electric vehicles from empty to 80% in under an hour.

4. Maintenance 

Generally speaking, EVs cost far less in maintenance than regular cars, but they will still need to be looked at as often. If something does go wrong, replacement parts can be hard to find and often more expensive due to their complex nature.

5. Hidden costs

It will cost money to install and maintain a wall box, plus if you use your home's electricity to charge the car, your bills will be much higher. Other things to consider are software and firmware updates, which while mostly free, some providers may charge you for them.

With all things considered, we believe that now is the time to join the EV revolution. The price of fuel may have calmed down from its drastic rise, but there isn’t a bad time to buy an electric car.

With excellent financing deals and government subsidies, like the State of New Jersey's incentive of up to $4,000 when you purchase or lease a new all-electric vehicle.

Of course, as with buying any new car, it won’t be cheap – in fact, buying an electric car will likely cost more than your average vehicle. But the savings you can make on fuel throughout your lease or the length you keep the car can be huge.

There are also more and more new models being released, as car giants look to get in on the act. With more choice in the market comes better pricing, so 2023 should be your year to commit to an electric car.

If you don’t want the complexities of leasing or don’t want to pay the high upfront cost of buying a new electric car, then consider the subscription model.

With a FINN car subscription, you can pick a new car every six to 12 months and choose from an ever-growing fleet. Have it delivered to your doorstep free of charge. Plus, your fixed monthly rate includes insurance and maintenance. Check out our available electric car subscriptions. 

There’s a lot to consider before committing to buying or leasing a new electric car. You might be able to find some decent financing deals but remember, the cost of electric cars is at a premium right now – but it’s still a worthy commitment if you can afford it.

That being said, the money you can save on fuel is worth factoring in. With Americans spending on average $5,000 per year on fuel, compared with just $672 on charging an electric vehicle, it isn’t hard to see where you can make that big upfront payment back.

If you want to get your hands on the latest electric cars without forking out thousands upfront, consider trying FINN, a car subscription that takes the hassle out of getting a brand-new electric vehicle.