EVs offer significant long-term savings across most US states: Study
The push for tariffs is part of a broader concern over China's competitive advantage in the EV market.
According to a new study conducted by JD Power, the expensive price of electric vehicles (EVs) is far outweighed by the cost of running them and so they happen to be more economical in 48 states over a 5-year ownership cycle in the US. The study reveals that in many instances, motorists would save over USD 10,000 if they chose an EV rather than the normal combustion engine vehicle. The JD Power report also compared lifetime costs between EVs and traditional petrol cars.
The JD Power study closely compared lifetime expenses of EVs to those of an internal combustion engine (ICE) car. Only in West Virginia and Maine did the ICE car cost less, and only by USD 1,800 over a five-year period in the case of West Virginia, and USD 1,619 for Maine. For the rest of the 50 states, and the District of Columbia, EV ownership will result in savings.
New Jersey has the greatest potential, with a projected savings of USD 10,345, largely due to a sales tax exemption for electric vehicles. Additionally, Nevada has a potential savings of USD 9,216, Illinois has a potential savings of USD 8,751, and Colorado's total savings are USD 8,493 when combining the maximum USD 5,000 incentive with other programs.
Additionally, more than USD 6,000 can be saved by choosing an electric car in New York, Massachusetts, Utah, Arizona, and New Mexico. In most remaining states, total savings range from almost USD 5,000 to USD 1,200, which provides a substantial cushion to a monthly car payment. The only exception is Vermont, where the savings total only USD 29 over five years.
JD Power's analysis demonstrates that EV owners can expect to save an average of USD 3,161, providing consumers with an opportunity to reconsider how they think about vehicle costs. Traditionally, we tend to focus on the upfront price of the vehicles, ignoring the long-term cost-saving benefits of EV ownership.
The savings only apply when purchasing an EV to own for five years. Interestingly, leasing an EV could cost consumers on average an additional USD 1,813 by the end of the lease term, significantly affecting the financial outcomes of different vehicle ownership decisions.
