Financial Incentives for Buying an Electric or Hybrid Vehicle

Written by adminAugust 7, 2019
Real life

A lot of people today think that electric and hybrid vehicles are new technology, but electric cars have been around since well before combustion engines arrived on the scene.  Electric cars were quite popular back in the late 1800s and early 1900s. Even New York City’s first fleet of taxis were electric cars.

So, what happened?  Well, the combustion engine was in its infancy.  It was difficult to start, using a crank to get it going.  Also, there were a lot of fumes and it smelled. This is why electric cars were more popular back then, but the popularity didn’t last.  Combustion engine cars were simply cheaper to make and cheaper to buy. In the end, the lower price always wins out.

That’s not the whole story.  There were other advancements in combustion engine technology.  Not only did you get much more range, but fuel was cheap and abundant.  Once they figured out how to do away with the crank to get the engine going, and added a tailpipe to send the exhaust out the back of the car, it all but sent the electric car into near extinction.  

Environmental Concerns

Fast forward to modern times and we’re now dealing with an epidemic.  Environmental concerns are making their way to the forefront of people’s minds.  Pollution, due to more than a century of burning fossil fuels and other pollution, is threatening our planet.  Now, people are giving electric and hybrid cars a second look as a means of reducing pollution.

The problem is, electric cars still aren’t cheap.  They’re still more expensive than combustion engine cars by as much as 20%.  The price is definitely keeping people away from investing in eco-friendly vehicles.  To counter this cost, the government has decided to offer a bunch of different incentives and credit to inspire you to buy them.

Tax Credit and Incentives

There’s a lot of research you will have to do on your own before purchasing an electric car.  There are a lot of varying factors that depend on what you buy and which state you live in. Federal rules can be difficult to understand, so find a dealer who knows what they’re talking about and bring your own research to the table.  

The federal government will grant a tax incentive up to $7,500, but there’s a catch.  It’s not a blank check to everyone. You only get the full $7,500 if you owe that much in taxes.  If you owe $5,000, then you’ll only get $5,000 in credits. And no, you won’t get the difference. It is what it is.  But state-level benefits exist too, but they vary per state. Of course, states like California have better incentives than those who are less environmentally savvy.  

The credits will also depend on the side of the battery in the car.  Different cars will have different benefits attached to them, so, again, do your homework.  Some models will get you more incentives and some don’t have any at all.

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Thinking about Buying an Electric Car? Here are 8 Things to Consider

Written by adminJuly 2, 2019
Life Style , Student Loan Consolidation

People have been waiting around for the flying car ever since Back to the Future promised us this advancement back in the 1980s, but we’re not quite there yet.  Still, we’ve come a long way in transportation since our horse and buggy days. For many decades, your average combustion engine has been the way of the automobile.   

It has dominated sales for three main reasons:  

1) Cheaper to make than electric cars,  

2) Better range than electric cars, and  

3) Cheap fuel. 

These days, the paradigm is shifting.  Concerns over global warming caused by pollution from cars and trucks are at an all-time high.  Global temperatures are rising and smog is only getting worse in heavily populated areas. The only way to combat these issues is through the advancement of technology and purchasing electric cars.   

If you find yourself concerned for the environment and desire to play your part in helping fix the problem, there are a few things you need to know before buying an electric car.  Here is a short list of things you might need to know: 

1) What is your normal route?  The one downside to electric cars is their lack of range.  If you live and work on completely opposite ends of a large city, or maybe you’re situated way out in the country, you might want to second guess the electric car and go for a hybrid.  Electric cars only have a maximum range of 100 miles. A lot of them are shorter than that. Do you do a lot of driving during an average day? Do you take a lot of trips? Get stuck in traffic a lot?  If so, then a hybrid vehicle might be the best for you, as it combines an electric engine with a combustion one, so when the battery juices run out, it switches over to gas.   

2) Consider where you live.  Anyone who has ever driven a vehicle with a battery in very cold weather knows that the battery doesn’t extreme temps.  If you live somewhere that gets super cold for a prolonged amount of time, then an electric car might not be for you. You must also consider your availability to a charger.  Some require a simple power outlet. A lot of places where the EV cars are most popular are integrating charging stations. So, always be sure to know your surroundings and if having any type of EV or HEV is right for the conditions.   

3) EVs have very little noise.  If it’s one thing all car owners know well, it’s the hum of the combustion engine.  The sound it makes when it starts up, when it’s being revved, and when you’re slowing down.  It will take some time to get used to the fact that electric engines are virtually silent. This might be great, except for the fact that no one will hear you coming.  This can be dangerous when going around corners. It will require you to change the way you drive. 

4) You’ll have to rethink fueling up.  We’ve all done it before.  We’ve all waited until the tank was nearly empty, driving on fumes to pull into the gas station.  We save fueling for when we’re out an about because it takes typically 5 minutes or less. With an electric car, you don’t have that luxury.  The average time to charge a battery is 90 minutes. So, if you’re rushing late to work and you forgot to charge your car overnight, you’re out of luck. You can’t just stop at the gas station.   

5) Costs of going green.  Yes, the biggest perk of going green is you no longer have to spend money on endless gallons of gasoline.  This doesn’t require the constant repairs, oil changes, and other maintenance issues that crop up with a combustion engine car.  But one of the biggest complaints about the EV is they are typically more expensive. Their expense is why gasoline powered cars became more popular than electric all those years ago.  You should be able to do your research and see how the cost vs. savings plays out for you.   

6) The government might want to help you get one.  Combined with point #5, you should be sure to check into whether the government is in the mood to help cover the costs of buying an electric car.  They often offer subsidies to encourage people to go clean instead of buying a cheaper, combustion engine vehicle. Both the federal and state level governments offer their own benefits, so be sure to check what you can obtain for your state. 

7) These things go fast!  Face it, we all love speed.  It’s a need, really. There’s a myth out there that electric cars are super slow compared to the muscle-power you get with a combustion engine.  The latest Model S EV from Tesla can hit zero-to-sixty in 2.8 seconds. That’s some serious speed! It’s comparable to the 918 Spyder from Porsche!  Whatever specification you have in a car, an EV offers all the torque you need. 

8) Not for towing.  While electric vehicles have great speed, the technology doesn’t exist quite yet for them to do any heavy-duty work.  Not only is range an issue, but EVs are generally weaker. 

9) You can go hybrid.  If you need more range or power, then you should consider a hybrid vehicle.  Hybrids combine the electric battery with the usual combustion engine. The purpose of these is sort of a bridge between full-electric and full-gasoline.  When the battery runs out, it would automatically jump to the gas engine.   

As environmentalism grows in fervor, more people will start to search for cleaner ways to get around.  Electric cars are the future of transportation. Armed with these nine things to know, you’ll be well on your way to living as carbon-free as possible.  There are other things to know and remember, which we will provide in future articles.   

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