Updated June 8, 2023
In 2023, an electric vehicle became the top-selling car globally for the first time. EVs offer a cleaner, more efficient way to drive and create opportunities for cost savings and increased convenience (no more trips to the gas station!).
Saving money with an electric vehicle
Many electric vehicles are priced below the average cost of a new vehicle. Add in savings on fuel and maintenance, and an EV can be much cheaper than a fossil fuel vehicle.
Consider a Tesla Model Y (currently listed at $47,490, which becomes $39,490 with federal and state rebates) compared to an average new fossil fuel car ($49,338). An average fossil fuel car gets 28 miles per gallon of fuel. A Model Y can go 100 miles per 28 kWh of electricity, equivalent to about 120 miles per gallon in a fossil fuel car.
EVs don’t need the same maintenance (e.g. oil changes) as fossil fuel cars, and have fewer moving parts, so it’s less likely you’ll need repairs. Typical maintenance costs for fossil fuel cars are $0.10 cents per mile, compared to only $0.06 per mile for EVs.
See how these cost savings add up in the table below:
Annual mileage | Fuel economy | Fuel price | Maintenance costs | Annual fuel costs | Annual maintenance costs | Total costs per year | |
EV (Tesla Model Y) | 15,000 miles | 100 miles per 28 kWh | $0.20 - $0.22 per kWh | $0.06 per mile | $840 - $924 per year | $900 per year | $1,740 - $1,824 per year |
Average fossil fuel car | 15,000 miles | 28 miles per gallon | $3.50 per gallon | $0.10 per mile | $1,875 per year | $1,500 per year | $3,375 per year |
Annual savings with an EV | $1,551 - $1,635 per year |
An EV can save you over $1,500 per year compared to a fossil fuel car through fuel and maintenance cost savings, with similar—or lower—upfront cost. And we’ve barely talked about available incentives yet!
The Inflation Reduction Act includes substantial incentives for purchasing EVs:
- $7,500 tax credit for a new EV
- $4,000 tax credit for a used EV
- $3,750 tax credit for a gas-electric hybrid vehicles
To qualify for these credits, your adjusted gross income must not exceed:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
Federal credits are currently available for vehicles that are manufactured and assembled in North America:
- Cadillac Lyriq
- Chevrolet Blazer
- Chevrolet Bolt and Bolt EUV
- Chevrolet Equinox
- Chevrolet Silverado
- Ford E-Transit
- Ford F-150 Lightning (both standard and extended range battery)
- Tesla Model 3
- Tesla Model Y (both all-wheel and long range drives)
- Volkswagen ID.4 models (Pro, Pro S, S, AWD Pro and AWD Pro S)
In addition to federal incentives, New York State offers a Drive Clean rebate of up to $2,000.
Taking EVs on the road
The number of EV charging stations is increasing rapidly, making it even easier to get from place to place in your electric vehicle. In Red Hook, we already have 22 public chargers, including new fast chargers at Town Hall that are free to use through 2025.
Plan your next road trip with this map of EV chargers across the U.S. from the Department of Energy.
Did you know…?
Beyond passenger cars
There are options for electric pickup trucks as well, like the Ford F-150 Lightning used by the Town of Red Hook Building Department.
Did you know…?
Helpful links
- Qualified Vehicles - Fuel Economy
- Electric Vehicles Incentives - Rewiring America
- Credits for New Clean Vehicles Purchased in 2023 or After - IRS