Inside Clean Energy: Some EVs Now Pay for Themselves in a Year
July 14, 2022
Though you’ll pay more for them at the outset, electric vehicles are now a better deal than cars that run on gasoline, due to much lower fuel and maintenance costs and a $7,500 tax credit.
Pavel Molchanov did the math so you don’t have to. He’s been analyzing numbers for nearly 20 years at Raymond James, the financial services firm. His job is to give clear-eyed advice to investors, free of politics and marketing. And his advice is this: Buy an electric car.
There are two reasons why EVs are cheaper to operate. The first is that they are less expensive to maintain. The second has to do with fuel: the cost of fully recharging the EV with electricity is less than filling up a car with gas. Those combined savings add up to eventually cover the difference in sticker price between an EV and a gasoline-powered vehicle.
Speaking of magic numbers, there is one thing that Molchanov deliberately left out of his complicated calculations. He calls it the icing on the cake: the U.S. government is offering a $7,500 tax credit toward the purchase of a new electric car. When he put that tax credit into his model he found that an EV paid for itself in less than a year.