Electric cars pros and cons, part 1
July 23, 2022
If you’re in the market for a new vehicle, you may have your eye on an electric vehicle (EV). Maybe you want to reduce your environmental impact or simply save money on gas — or you just like the look of the new Tesla and you’re sold. But then you hear that nagging voice, “Are electric cars worth it?” Before deciding on going fully electric or not, you want to understand the benefits of electric cars. Read on to review electric cars pros and cons to help make your decision easier.
Benefits of electric cars
If you’re wondering are electric cars worth it, it’s key to understand all the benefits of electric cars. Owning an electric vehicle has its perks, so let’s review.
You can save a lot of money
Have you ever lamented about how high the cost of gas is while at the pump? Imagine those days are gone. Instead of filling up your gas tank each week and feeling like it’s taking a good chunk of your discretionary income, you could save a lot of money by going electric. When you have an electric car, you no longer need any gas to fuel your car.
Instead, you need electricity which is much more affordable. According to Energy.gov, you could reduce costs by 50% by going electric when compared to gas. You can even use their nifty eGallon tool to compare the costs of driving with gas versus electricity. For example, in California, it shows that the cost of gasoline is $3.73 per gallon compared to $1.86 for electricity.
Being able to cut your costs in half is remarkable for your budget and can reduce your overall spending, freeing up money to put elsewhere — like savings, debt, or even a fun hobby.
Electricity is renewable
The thing about gas is that it’s a finite resource as it uses oil to create gas. Oil is a natural resource. Given everything going on with climate change, it’s important to take a harder look at natural resources and the way they’re being used.
That’s why electric vehicles are an attractive alternative. Unlike gas which can technically run out, electricity can be renewable. It’s possible to get electricity in renewable ways such as through wind or water powers or even solar energy.
Renewable energy is on the rise as the U.S. Energy Information Administration (EIA) noted that usage reached record highs as of 2020, making it 12% of energy consumption. According to the EIA website, “The electric power sector accounted for about 60% of total U.S. renewable energy consumption in 2020, and about 20% of total U.S. electricity generation was from renewable energy sources.”
You can lower greenhouse gas emissions
One of the major benefits of electric cars is the fact that you can reduce your environmental impact. Regular vehicles that use gas greatly contribute to greenhouse gas emissions. In fact, according to the Environmental Protection Agency (EPA), as of 2019 transportation makes up 29% of greenhouse gas emissions, effectively the largest contributor next to electricity (25%), industry (23%), commercial and residential (13%), and agriculture (10%).
Electric cars don’t have an exhaust pipe to create greenhouse gas emissions. That’s not to say there is no environmental impact.
If you use coal or natural gas to power electricity, it can leave carbon pollution. If you use one of the more natural ways listed above, you don’t contribute to carbon pollution.
The EPA does state on their website, “Even accounting for these electricity emissions, research shows that an EV is typically responsible for lower levels of greenhouse gases (GHGs) than an average new gasoline car. To the extent that more renewable energy sources like wind and solar are used to generate electricity, the total GHGs associated with EVs could be even lower.” According to the U.S. Department of Energy, the national averages for annual emissions per vehicle is 11,435 pounds of CO2 equivalent for a gasoline vehicle whereas for all-electric vehicles it is 3,774 pounds of CO2 equivalent which represents 3x less CO2 than gasoline vehicles.
You can take advantage of tax credits
Another major perk of owning an electric car is the tax credits you could qualify for. According to the U.S. Department of Energy website, you could get up to $7,500 in tax credits. Your car must be all-electric or plug-in hybrid and made in 2010 or later to qualify.
Tax credits are more effective than deductions at lowering the amount you pay in taxes as they’re dollar-for-dollar. Meaning, if you owed $10,000 you could effectively lower your tax bill up to a maximum of $7,500 and only pay $2,500.
It’s important to note that the tax credit is only available up to the limit. So if your tax bill is only $2,000, you can receive the credit for up to $2,000 and the rest won’t help your tax situation any further. Deductions lower your taxable income which can lower how much you pay in taxes but is not dollar-for-dollar.
More information to come next time in part 2. For more information on electric cars versus gas or diesel vehicles, please consult the knowledgeable technicians at J&H Automotive. The shop is located at 501 W. Tehachapi Blvd. and can be reached at (661) 822-9171.