What Car Buyers Should Know About The Coming Tax Credits For Evs
For California consumers thinking about going electric, the Inflation Reduction Act could tilt the math in favor of nabbing that new Model 3 or F-150 Lightning sooner than later.
Drury says that even if GM is able to keep the Equinox around that price, demand likely will be high enough so the company builds mainly higher-priced versions.
And some dealers have been marking up EVs beyond the automakers sticker price due to greater demand. In the first half of the year, U.S. EV sales rose 68% from the same period a year ago, to nearly 313,000.
Some EVs could get a whole lot cheaper in the U.S. with federal tax credits starting next year of up to $7,500 that are part of the Inflation Reduction Act. But meeting federal requirements may be difficult.
The vehicles and batteries have to be assembled in North America, and the new law phases in requirements that battery minerals and parts have to come from the continent. Most minerals such as lithium, a key battery ingredient, are now imported from China and other countries.
The Equinox checks the North American assembly box. It will be made in Mexico. The company wont say where the battery will be made, but GM has announced three joint-venture battery factories in the U.S., including one thats operating already in Warren, Ohio.
Majoros hinted that it may take a couple of years to meet all the governments requirements to get the full credit as GM takes more control of its supply chain for EV parts.
/10 2022 Hyundai Kona Electric $34000
If youre in the market for a no non-sense EV without spending the big bucks, the Hyundai Kona Electric is the one for you. It is the electric version of the gas-powered Kona thats been on the market for some time now. While theres nothing too appealing about the package as a whole, theres nothing that will let you down either. The car comes well-equipped right from the base trim, with things like an eight-inch touchscreen, wireless Apple CarPlay, and Android Auto, etc. The desirable stuff is offered in the only other trim, but its a steep jump of $8,500 over the base models price, which warrants you to look around and get something that probably tugs your heartstrings better.
The Hyundai Kona EV is powered by an electric motor that makes 201 horsepower and 291 pound-feet of twist. A 64-kWh battery pack is responsible for the 258 miles of juice it offers on a single charge. It supports Level 3 quick charge, which means your Kona Electric can recharge from 10- to 80-percent in 47 minutes. $34,000 is a good starting price for the Kona Electric, although $42,500 for the higher trim seems steep. Theres a sweet stop in between, though an optional Convenience Package for the base SEL trim for $3,500. It includes things like a sunroof, heated front seats, wireless charging, an eight-way power-adjustable drivers seat, and so on. All in all, the Hyundai Kona Electric is that one car you can rely on if nothing else makes sense to you.
2022 Hyundai Kona Electric
Electric Cars Are Now Three To Six Times Cheaper To Drive In The Us As Gas Prices Rise
Electric cars are now three to six times cheaper to drive in the US as gas prices are getting higher and more volatile.
The fact that electric vehicles are more efficient and less costly to operate than their gas-powered counterparts is not new information, but it is becoming more apparent, and it is on more peoples minds with the recent gas price increases.
Gas prices have been historically volatile, but even more so amidst the Russian invasion in Ukraine and the restrictions on the former country, which happens to be a large producer of oil and gas.
Across the US, gas prices have risen to over $4.20 a gallon on average, with many regions seeing prices over $5 a gallon.
The Zero Emission Transportation Association has released a new paper that calculated how this increase is affecting the cost of operation comparison with electric vehicles.
According to their paper, the gas price increase is now making electric vehicles between three to six times cheaper than gas-powered vehicles depending on the state:
Overall, as of March 2022, driving an EV is dramatically cheaper per mile than driving a gas-powered vehicle. Nationally, EVs are 3-5 times cheaper to drive per mile than gas-powered vehicles. In Arizona, Florida, Georgia, Nevada, North Carolina, Tennessee, and Virginia, some EVs are 56 times cheaper to drive.
Unfortunately, the graphics in the report are not really good at visualizing how much cheaper EVs are compared to ICE cars, but you have to focus on the numbers:
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The 2023 Escapes Options
Ford says it has completely updated the compact SUV, adding features such as a new ST-Line series, cloud-connected SYNC 4 Technology, and advanced driver-assistance system technologies. Other popular features that have carried over include a sliding second-row seat with more second-row legroom than the Toyota Sequoia and hybrid and plug-in hybrid engine choices.
The new Escape is the perfect getaway vehicle, said brand manager Adrienne Zaski. From large touchscreens that can wirelessly display Apple CarPlay® and Android Auto while your phone stays in your pocket to a sliding second row that offers more legroom, it makes everyday adventures easy to handle from meetings on the fly, to coffee runs with friends, or even a power nap in the back seat.
There are three engine options for the ST-Line: a 1.5-liter EcoBoost targeting 180 hp with front- or all-wheel drive, a 2.0-liter EcoBoost targeting 250 hp with all-wheel drive, and a hybrid option with front-wheel drive. The ST-Line models have a black mesh grille, rear skid plate, and large spoiler that set them apart from the competition. The entire vehicle is monochromatically painted for a refined look, and the well-equipped ST-Line Elite model includes an available coast to coast LED light bar that stretches across the width of the headlights.
The Escape PHEV features four modes that allow customers to select the settings most suitable for their individual needs, including an EV mode.
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How Much Is The Federal Tax Credit And How Does It Work
The federal EV tax credit is only available to individuals reporting adjusted gross incomes of $150,000 or less, or $300,000 for joint filers. The amount you qualify for is based on both your income tax and the size of the electric battery in the vehicle, among other factors like whether the battery components come from North America.
Language around the $7,500 credit includes things like “may” and “up to” — so, you may qualify for up to a $7,500 in federal tax credit for your electric vehicle. If you purchased the Ford F-150 Lightning and owed $3,000 in income tax this year, then you’d receive that as a federal tax credit. If you owed $15,000 in federal income tax, you would qualify for the full $7,500 credit when doing your income taxes.
That’s right, you can cut up to $7,500 off your taxes next spring if you buy an EV now.
You cannot simply go out to a dealership and expect it to give you these savings up-front. However, according to the US Department of Energy, starting in 2024 you should be able to get your credit at the dealer.
Affordable Evs: 7 Electric Cars You Can Get For Under $40000
Chevrolet, Volkswagen, and others offer stylish, relatively affordable EVs, and tax credits can lower the price even more. Here are seven EVs potential buyers should add to their lists.
Like most emerging technologies, electric vehicles hit the market with high price tags, and were initially viewed as playthings for those who had $100,000+ to throw around on a car. But that’s no longer the case, as drivers look to save on gas and take steps to address the climate crisis. Several EVs in the $30,000 to $40,000 range are already out there now, and more are coming in 2023.
Sure, theyre not as cheap as, say, a $15,580 gas-powered Nissan Versa, but prices are steadily coming down, making EV ownership more attainable and fun for the average car buyer.
Maintenance costs on battery-powered cars are also generally lower than their gas-powered counterparts because they have no engine or transmission, and fewer parts overall. One study found EVs require 31% less maintenance, and when they do the bill is 22% less.
There are also state tax credit options available, plus the new federal $7,500 EV tax credit. State credit information should already be finalized, and we’ll know more about which cars apply to the 2023 federal credit by year’s end.
For now, here are the most noteworthy affordable EVs hitting the market next year and what you need to know to cash in on tax credits. Starting prices shown.
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Details On The New Evs
Ford SUV: Mustang-inspired, performance-focused SUV is in development. Ford says it will be on the market in 2020 with an estimated 300-mile range.
2019 Hyundai Kona EV: The automaker says this all-electric version of the Kona crossover gets up to 258 miles on a single charge. It has a starting price of $36,450or $28,950 after the $7,500 federal tax credit is applied. CR recommends the gasoline version of the Kona, praising its nimble handling, easy-to-use controls, and standard safety features. We are testing a Kona EV now.
2019 Kia Niro EV: There are already hybrid and plug-in hybrid versions of the Niro. The EV version is coming this spring, has a reported range of 239 miles, and should start at around $38,000 before tax credits and incentives, according to Mel Yu, CRs automotive analyst.
2020 Kia Soul EV: The redesigned Soul EV uses the same underlying hardware as the Kona and Niro EVs. Its undergoing range testing but is expected to get around 230 miles per chargemore than double the 110-mile range of the current Soul EV. It is likely to be priced similarly to the Niro, Yu says.
Nissan Leaf Plus: Nissan says the new Leaf Plus can go up to 226 miles on a single charge. That 40 percent increase over the standard Leaf is thanks to a 62-kWh battery pack and a higher-output powertrain. It is on sale, starting at $29,990. The increased range makes the Leaf more competitive with the likes of the Chevrolet Bolt , Hyundai Kona EV, and Tesla Model 3.
When Will Ev Prices Drop
Prescott predicts that EV prices will start dropping in the next few years, with even bigger decreases within the next decade.
Currently, there are about 50 EV models available in the U.S. out of the roughly 550 total models on sale, he said. But many manufacturers have been quite aggressive with their EV model roadmap, with some brands like Volkswagen aiming to have EVs make up 50% of their sales by 2030 and luxury makes like Bentley and Cadillac looking to go fully electric by 2030.
Therefore, if we factor in the extra supply with the time it will take to gain some production efficiencies, Prescott said, I expect to see prices to start slowly dipping by 2025 and see a significant price drop by 2030.
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/10 2022 Chevrolet Bolt Euv
The Bolt EUV is essentially a larger version of the standard Bolt or, a crossover version, if you may. It is 6.3 inches longer, and 0.2 inches wider and taller than the standard Bolt. This means you have more legroom at your disposal inside the cabin. Apart from the size difference, theres one other thing that differentiates the Bolt from the Bolt EUV the panoramic sunroof!
It is powered by the same setup as the Bolt EV, making the same 200 horses and 266 pound-feet of torque. However, since the EUV is 90 pounds heavier, it is 0.5 seconds slower than the Bolt, taking seven seconds to sprint to 60 mph from rest. Despite featuring the same battery, the added weight also affects the range, not by much, though. The Bolt EUV offers 247 miles of range on a full charge, which is 12 miles less than the standard Bolt EV. But what you lose here, you gain in technology. The Bolt EUV is available with wireless phone charging and GMs Super Cruise driver assistance feature. This was the first time Super Cruise was offered on a car with a bowtie emblem.
2022 Chevrolet Bolt EUV
Going Beyond The Escape
The other thing an AWD PHEV would do is enable Ford to offer the Bronco Sport in a plugin hybrid configuration. Its built on the same platform, so the technology would easily translate. While the Sport was never meant to be the off-roader that the bigger Bronco is, its still a very capable vehicle compared to many crossovers if you mount some all terrain tires on it. How do I know this? My mom owns one and has taken it up some serious trails in Colorado.
This is even more impressive considering that she only owns the more basic Big Bend package, and not the top-spec Badlands.
Offering a PHEV Bronco Sport with mild off-road capabilities would be a great way to get people into electrification and offer the smooth, controllable torque at low speeds that EVs excel at in off-road driving. Plus, when driving the thing in town, the owners wouldnt have to pollute or waste money buying expensive gas.
So, were really missing out a lot when Ford doesnt make an AWD PHEV in the Escape and Bronco Sport vehicles.
Featured image provided by Ford, showing the Escape PHEV and ST-line .
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Electric Cars To Dominate Roads By 2025
The automotive industry has decided that all new vehicle platforms will be solely electric by 2025. Following recent announcements by General Motors, Ford, and Volvo, these companies have decided to stop selling gasoline- and diesel-powered vehicles by 2035. Because global investment in this sector is expected to reach $500 billion by 2026, this step is being taken. Cars will need to be charged in ten to fifteen minutes, allowing drivers to drive 200 miles longer. In the near term, the transition to electric vehicles will be a minor setback, but it will be reversed in the long run.
Electric Motors Are Simpler Than Internal Combustion Engines
Electric motors are much simpler than internal combustion engines. There are fewer moving parts, theyre lighter, and they require little maintenance. They also have fewer parts that wear out over time, so they can last longer and run more efficiently.
Electric cars are also easier to make. Electric vehicles dont need to be as complex as their internal combustion counterparts there are no pistons, valves, camshafts or transmission systems. This means that production costs will continue to fall as electric cars become more popular. Even if electric cars don’t fall in price overnight, their cost will likely drop as manufacturers learn how to build them more efficiently.
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When Will Electric Cars Be Affordable
EVs aren’t always seen as an attractive option because of their high upfront costs. While some believe these initial expenses will prevent them from being widely adopted, others predict that as EV technology improves, prices will come down.
Although we cant say exactly when, it seems inevitable that electric car ownership will become more widespread than it is today– for a number of reasons.
EVs have several positive benefits: They’re not only greener, but also quieter and more efficient they provide more power than conventional gas-powered vehicles they dont pollute the air with emissions they require far fewer gas stations and oil refineries and they reduce traffic congestion and road rage because you never need to stop at a gas station to refuel. Plus, if all goes well, electricity may eventually rival gasoline as an energy source.
In the meantime, you may find yourself wondering when electric cars might become affordable. Let’s take a look at what factors influence this question.
How Did We Choose These Affordable Evs
After writing about the changed considerations for the EV tax credit and looking at the manufacturers on that list, I decided to target both affordability and eligibility for the credit. I looked at different types of vehicles, including sedans and trucks, and in the honorable mentions at the end of this article, I even highlight a plug-in hybrid minivan that qualifies for the credit — the Chrysler Pacifica PHEV. I wanted to ensure that the vehicles on this best list met the standards set by the Inflation Reduction Act of 2022 and that they had quality features at an affordable price point.
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