Save Money with a New Electric Car

There is a new option for transportation that can potentially be very lucrative to individual and offer other incentives as well. This is with the new electric cars that are becoming so popular. A large savings available from purchase is the electric car rebate by state. They vary between states but help offset the higher cost of these cars. However, that is not the only way to save money with these cars. There are several ways to save with them, though the initial financial outlay is somewhat higher than conventional cars. There are also other incentives as well.

Less Operating Cost

These cars are cheaper to operate than gasoline operated vehicles, at least for certain distances. The electric power is not as expensive as the gasoline used to travel the same distance. Though there may be some inconvenience in keeping the car charged, the savings may well be worth the savings.

Tax Savings

One great way to save with these cars is a tax credit provided. Though it varies by the time of year purchased, the amount for each state is the same. The highest credit is $7500, with cars bought during the year in 2018. For cars bought by June 30, 2019, the credit is $3750. If it is bought after July 1st and before the end of the year in 2019, the credit is $1875.

Other Incentives

California, Colorado, Massachusetts, New York, and Tennessee offer these incentives when leasing but not purchasing. The incentives are offered if purchasing by cash or loan. They are administered by government agencies, not by the car companies.

Another incentive is the ability offered by some states to use the carpool lane, and the offering of free municipal parking. These two incentives can in some circumstances be a significant savings.

Though the power used to charge your car is an expense to consider, some utility companies offer special rates for charging a car, and some also offer discounts for nighttime charging, when most people would take advantage of it anyway.

Another area where savings can be realized in in licensing and registration. Many states offer discounts here, and are easier on emission requirements, which can save you money overall. Plus, the lowered emissions are an incentive for the person who is conscious of their footprint in the world. In this way, the electric car benefits the entire community.

Making a Wise Decision

Though these incentives can be quite lucrative, the electric car is not for everyone. Not everyone will benefit the same from the tax credit. It depends on the tax bracket a person falls into. It is wise to consult a tax consultant to determine if it would be beneficial to you.

Another area where a wise decision needs to be made is the carpool lane and free parking. If you work in an area where driving to work is no problem, the carpool lane won’t benefit you, and parking may not be an expense. Many companies offer free parking in their own garage.