If gas prices stay where they are, rideshare and delivery drivers will need to find ways to cut costs, earn more, or lose their profitability.
One way that Uber, Lyft, DoorDash, and other gig drivers can reduce gas costs is by switching to an electric vehicle. Uber and Lyft offer incentives to reward drivers using electric vehicles, but they’re the only major gig companies to do so.
As more automakers diversify their lineups with zero emissions vehicles, the future looks increasingly electric. And with rapid advancements in battery technology, there’s never been a better time to own an electric vehicle. TrueCar, an auto buying company, has weighed the pros and cons of owning an EV. Based on their research, zero emissions vehicles can save you money compared to their gasoline counterparts – and here’s how.
Never Fill Up Again
Although the price of electricity and gas will vary depending on your location, you can generally expect charging an electric car to be significantly less expensive compared to filling up at the pump. According to Consumer Reports, charging at home can save EV owners up to $1,000 a year compared to gasoline.
If you don’t drive often or don’t have a long commute, you may find that charging your electric vehicle using an ordinary 120-volt outlet is sufficient for your needs. However, a Level 2 charger rated at 240 volts can provide power at a much faster rate. This equipment can cost anywhere from $300 to $1,200, and that’s before installation. Don’t forget to factor this in if you determine that you need a charging station at home. It should be noted that it’s not uncommon for home charger installation to cost more than the equipment itself. The good news is that utility companies may offer rebates to help offset the extra expense.
You can also plug in at a public charging station. Pricing is usually tied to the amount of time spent charging your vehicle, but you can expect this standard to change. California has mandated that newly built charging stations bill by kilowatt-hour, rather than by the minute, beginning in 2021 with Level 2 charging and 2023 for DC fast charging. That’s a good thing, and we wouldn’t be surprised if more states follow suit.
Reduced Maintenance Costs
Electric vehicles are still considered a premium product and are priced accordingly. However, with fewer moving parts and no internal combustion, they are also less expensive to maintain in the long term. When it comes to repairs and maintenance, a study by Consumer Reports found that EV owners save an average of $4,600 on maintenance over the total lifespan of the vehicle, which means EV owners are spending half as much on maintenance as compared to owners of gasoline-powered vehicles.
Current electric vehicles run on lithium ion batteries, just like cell phones. That means that their charging capacity will degrade over time. An EV battery can be costly to replace—at an average of $5,500—but they can also last for up to ten years before this service is required. So if you’re in it for the long term, maintaining an electric vehicle may be more affordable than you realize.
Automakers also tend to offer longer warranties with electric vehicles. There are many electric vehicles with six-year warranties, with some, like the Hyundai Kona Electric and BMW i3, offering unlimited mileage. Plus, federal law requires electric vehicle batteries to be under warranty for eight years or 100,000 miles. With that kind of coverage, it’s safe to say that you can feel confident about owning an electric vehicle.
Tax Credits, Rebates and Other Incentives
If you buy a new electric vehicle, you may be eligible for up to $7,500 in federal tax credits. Vehicles from every major automaker are eligible for the full amount, while plug-in hybrids have lower rebates based on their reduced battery capacity. If you lease your vehicle, the automaker will receive the tax credit, but you will typically see some savings reflected in your monthly payment. This does still happen but, on more rare occasions. You should always ask about the Federal Tax Credit when leasing your EV.
Keep in mind that once a manufacturer sells 200,000 electric vehicles in a year, the federal tax credit will be reduced and eventually phased out. The total amount of sales applies to the entire lineup, not just individual models. So if you’re looking to reduce your tax liability, buying an electric vehicle sooner can make a lot of sense.
Depending on where you live, your new electric vehicle may also be eligible for various state incentives. These can include additional tax credits, rebates, funding for home charger installation and HOV lane access. Be sure to check your local state laws and incentives and see what you may qualify for.
Time Is Money
Electric vehicles can save you more time than you may realize. Instead of spending time filling up at the gas station, you can recharge while you’re at home—just like you do with your phone. And with EV charging infrastructure expanding quickly across the country, it’s becoming easier to plug in at work or while running errands.
If you live in a state that offers HOV lane access for electric vehicles, you can also expect to spend less time in bumper-to-bumper traffic. For example, the average commuter in Houston saves anywhere from 12 to 22 minutes each trip by taking the HOV lane, which can easily add up over a year. That’s more time spent moving and less time wishing you were in the carpool lane.
And with fewer parts to maintain, you likely won’t have to spend as much time at the dealership service center or mechanic. Say goodbye to oil changes. You’ll still need to rotate your tires and replace your windshield wipers, but the amount of service required for electric vehicles is quite reduced when compared to standard vehicles.
What About Used Electric Cars?
Electric cars are becoming more and more mainstream, which means that it’s also becoming easier to buy one used. You won’t qualify for federal and state incentives if you go this route, but there are plenty of other great reasons to buy a used electric vehicle. Some of them are obvious, and some aren’t.
Depreciation leads to great deals, and today you can find many of the most popular electric vehicles for a bargain. That includes the Tesla Model S, many of which are still under battery warranty. For those on a tighter budget, the Chevy Bolt delivers over 200 miles of range and is quite affordable. If you’re looking for familiar sounding names, check out our guide to the six popular cars also available as electric vehicles.
Of course, it’s not all about dollars and cents. Electric vehicles help lower your carbon footprint, but buying a used electric vehicle goes even further. Producing a vehicle creates emissions and consumes resources, while buying used helps extend the life of a vehicle that’s already been built. Chalk that up as a double win.
While electric vehicles are a great way to solve the gas problem, electric vehicles are hard to come by affordably right now. To help rideshare and delivery drivers navigate the path to becoming an EV owner, TrueCar provides a guide to switching to an electric vehicle. With TrueCar, you can search for available electric vehicles in your location and price range!
Interested in owning an EV for your rideshare or delivery business?
Check out TrueCar to find your perfect car!
The content of this article is provided courtesy of TrueCar. The original blog post can be found here.
