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Electric vehicle tax credits
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Technology

What you should know before buying an electric vehicle

Beyond your current speed and fuel level, your car’s instrument panel flashes warnings when something is wrong. If your tire pressure or windshield washer fluid is low, you’ll get a notification. The same goes for problems with headlights, brakes, steering, temperature, oil, battery and more.

The check engine light may seem like a big deal, but it’s usually tied to something like your car’s oxygen (O2) sensor. But a new cause tops the list, and it’s related to your catalytic convertor. Tap or click here for our report.

Do you know which cars don’t have catalytic convertors? Electric vehicles. And we see more EVs on the road from manufacturers besides Tesla. Here is crucial information you need to know before buying an electric car.

They’re out there

Ford introduced the Mach-E for the 2021 model year and has since electrified its bestselling F-150 pickup truck to bring us the F-150 Lightning.

GM just announced a hybrid Chevrolet Corvette coming next year, followed by a fully electric version somewhere down the line. The Hummer EV is GM’s first electric truck, and the 2024 Chevrolet Silverado EV is under development.

Demand for EVs is high

People have become more accepting of EVs to the point where it’s sometimes difficult to secure one. Many reservations are backed up. Whether you want to drive an EV to help the environment or to combat the high cost of fuel, there are a few factors to take into consideration:

  • EV costs include more than just the electricity itself. Commercial chargers have fees, and you’ll sometimes need time to find one. Some states also impose an additional EV tax.
  • With the fees, tax and deadhead miles, EVs can cost more to power than conventional vehicles.
  • EV fuel prices vary widely when compared to gas prices.

Tap or click here for our full report on EV fuel pricing.

Getting a break

Look for an EV that qualifies for a federal tax credit. This can offset up to $7,500 off your purchase price.

The list of cars ranges from budget-friendly economy cars to luxury sports cars. You can check out a robust list of qualifying EVs at fueleconomy.gov/feg/taxevb. Here are some examples of all-electric vehicles from the list that qualify for the full $7,500 credit:

  • 2020–22 Audi e-tron Sportback
  • 2014–21 BMW i3 Sedan
  • 2021–22 Ford Mustang Mach-E GT
  • 2022 Hyundai Ioniq 5
  • 2019–22 Kia Niro EV
  • 2022 Mazda MX-30
  • 2020–23 MINI Cooper S E Hardtop
  • 2011–22 Nissan Leaf
  • 2021–22 Porsche Taycan EV
  • 2016–20 Tesla Model X

These federal tax credits don’t last forever, and some have already expired. According to a report from the Associated Press, Toyota is getting close to its cap on credits, so that’s something to think about.

Equipment costs

Installing charging equipment at home makes EV life much easier. You won’t spend as much time looking for a charging station, and if you plug in your car at night, you’ll have enough for your commutes.

The problem here is cost. Tesla’s Wall Connector goes for $400, and Ford’s Charge Station Pro costs more than $1,000.

Keep reading

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