ah, yeah. Gas prices aren’t the only thing creeping up in price under the radar, not getting as much attention. Electricity is costing more to. So what’s really cheaper fueling up your gas tank on your car or fueling up an electric car with electricity. And what about the cost of the car up front? How does that factor into it? We’re breaking it all down before you go car shopping. Mm hmm. First, let’s talk about the average cost of buying an electric vehicle versus a gas powered one. According to Kelley Blue Book. The average price of an electric vehicle, $64,685. That’s pretty expensive. The average price of a comparable full size gas powered car Is just $41,618. Exacting. So you’re going to pay more upfront for an electric vehicle. No, no question about it. About $23,000 more. Okay, so the up front cost to owning an electric vehicle is higher. What about maintenance Experts say? If you drive around 20,000 miles a year, you’ll pay an average of $1,800 a year in maintenance. That’s a lot. But triple a says electric vehicles don’t need the same amount of maintenance. You don’t need to get the oil changes. You don’t need to change the air filters as much. So the upkeep Is much less for an electric vehicle only costs about $949 a year. That’s $851 less. Not Jeff. The gas powered Jeff. Finally, let’s talk about refueling, What’s cheaper to refill a gas tank or an electric battery right now. The national average for a gallon of gas, $4.25 which means to fill up this car right here. Average gas powered car, it’s going to cost me about 60 bucks from empty. Now let’s compare that to an electric vehicle. Most tv users charge up their electric vehicles right here at home in the garage and I know you’re used to seeing those big special E. V. Chargers in the garage. That’s for fancy pants. A lot of people charge their electric vehicles right here just with a regular wall outlet. Yeah, you can do that. But what does it cost on your electric bill? So we did the math. It costs 14 cents on average, 14 cents per kilowatt per hour. It takes the average electric vehicle 75 kilowatt hours to charge up fully. Yeah, we did the Math calculator, 75 kilowatt hours fully to charge. That means it costs about $10.50 per charge in this. Quick comparison electric cars will cost you more up front. But the savings could be in the thousands every year after that. By the way, for every dollar gas prices go up, experts say get this, you’re paying about $56 more a month on gas for every dollar a gallon. But electricity rates don’t rise that fast. So electric vehicle owners will probably never have to pay that much extra in filling up their batteries. We’ll have all this information, putting it up there right now and more on my website, Rossen reports dot com. Back to you.
New for this year, you can get a tax credit for a new electric vehicle, whether you choose to buy or lease one.The Inflation Reduction Act of 2022 includes revised tax credits of up to $7,500 on certain new EVs and a new tax credit of up to $4,000 on used electric cars. Some new rules, such as the requirement that new EVs be made in North America in order to qualify for a tax credit, went into effect as soon as it was signed into law. The IRS released a list of vehicles and qualifications:Who qualifies?To qualify, you must:Buy it for your own use, not for resale.Use it primarily in the U.S.Your modified adjusted gross income may not exceed:$300,000 for married couples filing jointly.$225,000 for heads of households.$150,000 for all other filersQualified vehiclesTo qualify, a new vehicle must:Have a battery capacity of at least 7-kilowatt hours.Have a gross vehicle weight rating of less than 14,000 pounds.Be made by a qualified manufacturer. Undergo final assembly in North America.In addition, the vehicle’s manufacturer suggested retail price can’t exceed:$80,000 for vans, sport utility vehicles and pickup trucks.$55,000 for other vehicles.Check out this list of qualified vehicles. If you’re considering getting a used electric car that’s under $25,000 and two model years old, you could qualify for a $4,000 tax credit. Here are the qualifications for used cars. Want to look up a specific vehicle? You can check that online at this website by typing in the VIN. Remember, the rules will start changing in March. The new rules could reduce the credit amount for some vehicles. You have to take possession of the car before those rules are issued. It’s not enough to simply purchase the car before then. In the future, it’s possible you can qualify to get your EV tax credit at the time of purchase on new vehicles. If the dealership doesn’t offer it right away, you can still request the credit on your taxes using Form 8936.Some state and local governments also offer incentive programs. Whether it’s a rebate or tax credit, make sure to check to see if you could get some money back for going electric. The federal tax credit will end in 2032.
New for this year, you can get a tax credit for a new electric vehicle, whether you choose to buy or lease one.
The Inflation Reduction Act of 2022 includes revised tax credits of up to $7,500 on certain new EVs and a new tax credit of up to $4,000 on used electric cars.
Some new rules, such as the requirement that new EVs be made in North America in order to qualify for a tax credit, went into effect as soon as it was signed into law.
The IRS released a list of vehicles and qualifications:
Who qualifies?
To qualify, you must:
- Buy it for your own use, not for resale.
- Use it primarily in the U.S.
Your modified adjusted gross income may not exceed:
- $300,000 for married couples filing jointly.
- $225,000 for heads of households.
- $150,000 for all other filers
Qualified vehicles
To qualify, a new vehicle must:
- Have a battery capacity of at least 7-kilowatt hours.
- Have a gross vehicle weight rating of less than 14,000 pounds.
- Be made by a qualified manufacturer.
- Undergo final assembly in North America.
In addition, the vehicle’s manufacturer suggested retail price can’t exceed:
- $80,000 for vans, sport utility vehicles and pickup trucks.
- $55,000 for other vehicles.
Check out this list of qualified vehicles.
If you’re considering getting a used electric car that’s under $25,000 and two model years old, you could qualify for a $4,000 tax credit. Here are the qualifications for used cars.
Want to look up a specific vehicle? You can check that online at this website by typing in the VIN.
Remember, the rules will start changing in March. The new rules could reduce the credit amount for some vehicles. You have to take possession of the car before those rules are issued. It’s not enough to simply purchase the car before then.
In the future, it’s possible you can qualify to get your EV tax credit at the time of purchase on new vehicles. If the dealership doesn’t offer it right away, you can still request the credit on your taxes using Form 8936.
Some state and local governments also offer incentive programs. Whether it’s a rebate or tax credit, make sure to check to see if you could get some money back for going electric. The federal tax credit will end in 2032.
