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Oct 17, 2023

8 Tips to Save Money If You Want to Own an EV

EVs are not only emissions-free, but they can also save you money compared to

EVs are not only emissions-free, but they can also save you money compared to owning an internal combustion engine vehicle.

More people are buying electric vehicles every year as the world shifts towards green energy in an effort to reduce carbon emissions. EVs are not only emissions-free, but they can also save you money compared to owning an internal combustion engine vehicle.

Mind you, many of the money-saving tricks you may have picked up through owning an ICE vehicle will no longer apply once you go electric. EVs have specific requirements, and as an EV owner, you will have to find a way to strike a balance between properly maintaining the vehicle and keeping costs down.

So, how do you save money if you own an electric vehicle? Let's find out.

Did you know that there are different ways to charge your EV for free? One way you could do that is to plug into any Volta charging station and start watching their ads. If you can't find a Volta charging station nearby, you could consider Adopt a Charger, which offers free Level 2 EV chargers in select locations.

You could also take advantage of campuses, business premises, hotels, and workplaces that offer free EV charging services. Alternatively, you could save money by buying an EV that comes with a free charging plan from the manufacturer. For instance, the 2023 VW ID.4, Hyundai Ioniq 5, Porsche Taycan, Audi e-Tron GT, and Kia EV6 are some of the new EVs that come with years of free charging.

According to the Inflation Reduction Act of 2022, you can claim a tax discount of 30% if you’re installing home chargers for your EV. To put it into perspective, most Level 2 home chargers cost between $400 and $700, but you could reduce the installation cost by 30%. That could save you between $120 and $210, but do keep in mind that the tax discount limit for home chargers is $1,000.

If you’re installing EV chargers on your business premises, you can claim a tax discount of 30% up to $100,000. In addition to that, you could check if your state offers tax incentives for the installation of solar panels and EV home chargers.

If you’re driving a Tesla, your insurance premiums could be dictated by your real-time driving habits. Teslas constantly analyze your driving and rate you with a Safety Score that could potentially land you cheaper insurance. In order to improve your Tesla Safety Score, you need to focus on a few things like applying your brakes gradually, keeping your hands on the wheel, slowing down around obstacles, turning at wide angles, and avoiding following other cars too closely.

Do note, though, that your Tesla Safety Score will only be useful if you’ve subscribed to Tesla insurance. If you're signed up for a different EV insurance plan, your premiums could be calculated depending on your age, location, gender, and how often you drive. There are cheap EVs to insure, if you don't want a Tesla.

If you’re buying an EV, you could consider models that qualify for the federal tax credit to save up to $7,500. For an EV to qualify for the federal tax credit, its battery, and minerals must be assembled in the U.S. or its free trading partners. Fortunately, most car manufacturers like Ford, BMW, Nissan, Rivian, Volkswagen, Tesla, Chevrolet, Audi, and Volvo have models that qualify for the federal tax credit.

However, not all EVs qualify for the full $7,500 tax credit. At the time of writing, the Chevrolet Bolt, Ford F-150 Lightning, Cadillac Lyriq, Tesla Model 3 Performance, and Tesla Model Y are the few EV models that qualify for the full $7,500 tax credit. Besides that, you can claim a tax credit of $2,500 if you’re buying a used EV, although it needs to cost no more than $25,000 in order to qualify.

Replacing your EV's battery may set you back thousands of dollars. In fact, in most cases, you could spend almost half as much as you spent to buy your EV in order to replace the battery pack. On the bright side, most EV batteries are built to cover 300,000 to 500,000 miles before they're due for replacement.

Since you can't predict with certainty how long your EV battery will last, you should consider buying EVs that have a longer battery warranty. All electric vehicles in the United States are required by the federal government to have a minimum battery warranty of eight years or 100,000 miles. However, a few EV models, like the Tesla Model S and Model X, have a battery warranty of 150,000 miles.

If you can't afford top-of-the-line EVs that have a longer battery warranty, you could consider an extended warranty to cover your EV battery for an extra 4 years or 50,000 miles.

If you're buying your EV with the intent to sell it a few years down the line, you should think about buying an EV with a high resale value. Some of the most sought-after EV brands in the US that have high resale values are Tesla, Chevrolet, and Audi.

Beyond that, there are other things that could affect your EV's resale value, such as the battery condition, maintenance history, eligibility for the tax credit, and the presence of driver assistance technology.

It's cheaper to charge your EV during off-peak hours when there is a lower demand for electricity. The off-peak hours depend on your location, season, and time of day. According to the US Energy Information Administration (EIA), most locations in the US have electricity off-peak hours between 11pm and 7am, but make sure to check with your local electricity provider.

If you’ve installed solar panels, you could even charge your electric vehicle at zero cost. However, it could be expensive to install solar panels, with the cheapest systems starting at around $5,000. Then again, you can reduce the initial cost of installing solar panels by 30% if you qualify for a tax discount under the Inflation Reduction Act.

An electric vehicle with a longer battery range could be cheaper to own over the long term. For instance, if you fully charge an EV like the Lucid Air Touring, which has a 93 kWh battery, you could cover a range of up to 425 miles. If, however, you fully charge an F-150 Lightning with a 98-kWh standard battery, you shouldn't expect to cover any more than 230 miles.

To put it into context, just because two different EVs have the same battery size doesn't mean they will cover the same distance—it's all about how efficient a vehicle is. Battery size aside, the range of an EV is determined by its weight and wind drag coefficient. However, there are other ways to improve your EV range that are within your control.

Better yet, you could consider buying the longest-range electric vehicles if you want to squeeze extra miles out of your battery.

Electric vehicles are affordable to own and run, especially if you employ different strategies to maximize your savings. In addition to that, EV manufacturers are reducing prices significantly so that they can increase demand and get their vehicles to qualify for the federal tax credit. In other words, there is no better time to save money if you own an EV than right now, although don't forget that electric cars do have drawbacks.

James is a professional automotive writer who has worked for most well-known automotive websites. His articles have been published on websites such as The Drive, Hot Cars, Smart Trucking, Car Repair Lab, RV Talk, Drifted, Green Authority, 180SX Club, Inspired Cyclist, Low Offset, and SlashGear. Besides his experience as a writer, editor, and consultant when it comes to the automotive industry, James also covers consumer technology.