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The Best (and Cheapest) States to Own an Electric Vehicle

The Best (and Cheapest) States to Own an Electric Vehicle

Are you in the market for a new car? Have you considered an EV?

Energy Innovation, an “impartial energy and climate policy firm providing research and analysis,” published a May 2022 study which found that it is cheaper to buy and own a new electric vehicle over the life of the vehicle than a comparable gas model. This makes sense because EVs require little or no gas, require less maintenance and have a higher average lifespan than combustion engines.

Mohamed Mahmoud Hassan

The Cost of Owning an Electric Vehicle

The problem is that most people worry about the initial cost of buying an EV. With prices ranging from $20,000 to $80,000 from unmarked MSRPs, sticker shock is almost inevitable. However, most car buyers do not pay for a car outside the door. Financing takes place over two to six years, during which time you save money when you don’t have to buy gas, pay for oil changes and more. How much you can afford depends on the gas prices where you live. The cost of charging an electric car will also vary widely from state to state, as will EV incentives, insurance rates, sales tax, and other charges.

Which States Are Best for Electric Vehicle Owners?

Energy Innovation conducted its study on car classes and types to get a fair comparison and contrast of the cost of ownership between EVs and comparable gasoline models. The wide selection on the market included the 2022 Hyundai Kona vs. the Kona EV, the 2022 Hyundai Kona Limited vs. the Limited EV, 2022 Ford F-150 XL vs. the electric Lightning Pro, the 2022 Kia Niro EX Premium vs. the electric EX premium, the 2022 Volvo XC40 Inscription vs. the Recharge Plus, and the 2022 Nissan Versa S Xtronic CVT vs. the all-electric Leaf.

The results weren’t surprising: estimates suggested the greatest savings will occur in states where driving distances tend to be longer and/or commutes are busier, and where gas prices exceed national average rates:

  • California
  • Colorado
  • Florida
  • New Jersey
  • New York

Unsurprisingly, the states with the most incentives to buy an electric car line up with the states with the most potential savings with a few potential outliers. New Jersey tends to lead the suit. There is a $5,000 discount for anyone who buys or leases an EV, and the government waives nearly 7% sales tax on electric car purchases. in California, eligible vehicles (notably not Rivian or Tesla) earn a $2,000 discount. New York State offer same discount for EVs. Colorado offers a $2,500 state tax credit to be reduced to $2,000 by 2023. Leases are eligible for a $1,500 discount. An Xcel Energy EV incentive with $5,500 in prepayments is also available for new EVs and $3,000 for used models.

Beyond these capabilities, Connecticut, Massachusetts, Delaware, and a host of other states encourage EV purchases with various incentives. One of the best options is in Oregon, where buyers not only qualify for discounts of up to $2,500 on the purchase or lease of a qualifying new EV, but low-to-middle-income residents can save an additional $5,000 on cars. corresponding to requirements. Savvy readers may also notice that Oregon has no state tax — a hefty savings if you’re spending tens of thousands of dollars on a new car.

As for the model Energy Innovation said would save the most money across the board, charts show that the electric versions of the Kona SEL and F-150 are cheaper to own in every state in the union, with an average of 8.5% and 12.3% savings across the board.

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