Myth: EVs are only accessible for the wealthy.
Myth Busted: There are programs and opportunities available that make owning an EV affordable for many.
With the electric vehicle market increasing in popularity, the cost of EVs is dropping much faster than expected. However, the upfront cost of buying an EV is still a barrier for many drivers. Luckily, there are several programs and strategies available that can make owning an EV less of a financial burden and help drivers contribute to clean air without breaking the bank.
Firstly, there are great tax credits and incentives provided federally and by the state to help make the upfront cost of buying an EV more manageable. The federal EV tax credit awards up to $7,500 for new electric, plug-in hybrid, and fuel cell vehicles purchased after 2010 – if you are leasing a car, this credit can potentially lower your lease cost. Colorado has a $2,500 state tax credit that may be applied at purchase for many EV manufacturers as well as a $1,500 tax credit for EV leases of at least two years.
If tax credits don’t reduce the price enough, you don’t have enough tax liability, or if you’re not looking to buy a new vehicle, try the used EV market. Many car manufacturers have EV models available now, and the used EV market continues to grow as newer models are released. Typically, used EVs cost anywhere from 43% to 72% less than new ones and models 3 years or older can be found for less than $10,000.
In addition to purchase price reduction, utilities are also working to make owning electric vehicles more affordable. There are several Low to Moderate Income programs aimed at bringing low-cost charging to multi-family housing and businesses to make EVs and charging more accessible to low-income communities. Xcel Energy has tax credits and rebates available for their customers to help lower upfront costs for both EVs and charging infrastructure, and many other utilities in Colorado have similar programs.
As the world moves forward with EV innovation, equity continues to be a major focus. New proposals and ideas are emerging that aim to make EVs more accessible and affordable and there are many resources out there that can help you on your EV journey, including Drive Electric Colorado. If you have questions about these opportunities or EVs in general, don’t hesitate to contact us!