Open navigation Main Menu Mortgages

Financing a home purchase Refinancing your current loan Finding the best lender Additional Resources

Looking for a financial advisor? Do our 3-minute quiz and connect the advisor you want today.

Main Menu Banking

Compare Accounts Use calculators Get assistance from Bank reviews

Looking for a financial advisor? Do our 3-minute quiz and match to an adviser today.

Main Menu Credit cards

Compare by category Compare by credit needed Compare with issuers Get advice

Looking for the perfect credit card? You can narrow your search using CardMatch(tm)

Main Menu Loans

Personal Auto Loans, Loans for Students, and Loans to Autos Loan calculators

Find the perfect personal loan within two minutes or less. Answer a few questions to receive offers with no effect on the credit rating.

Main Menu Investing

Best of Brokerages and Rob-Advisors. Learn the basics Additional information

Looking for a financial advisor? Try our three minute test and connect the advisor you want today.

Main Menu Home equity

Get the best rates Lender reviews Use calculators Knowledge base

Looking for a financial advisor? Do our 3-minute quiz and match to an adviser today.

Main Menu Real estate

Selling a home Buying homes Finding the right agent Additional resources

Looking for a financial advisor? Take our 3 minute quiz and then match up to an adviser today.

Main Menu Insurance

Car Insurance Homeowners insurance Other Insurance Company reviews

Looking for a financial advisor? Take our 3 minute quiz and then match up to an adviser today.

Main Menu Retirement

Accounts and retirement plans. Get the basics of retirement calculators Additional sources

Looking for a financial advisor? Try our three minute test and connect with an advisor today.

Search open Close search

Submit

Is now a good time to invest in electric vehicles? Considerations when financing an EV Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by offering you interactive tools and financial calculators as well as publishing original and objective content. This allows users to conduct research and compare information for free and help you make sound financial decisions. Bankrate has partnerships with issuers including, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies who pay us. This compensation could affect how and when products are featured on the site, such as the order in which they appear within the listing categories, except where prohibited by law. This applies to our loans, mortgage,, and other products for home loans. But this compensation does affect the content we publish or the reviews appear on this website. We do not contain the universe of companies or financial offers that may be accessible to you.

SHARE:

The Page On This Page On This Page

Prev Next

Phynart Studio/Getty Images

7 min read Published on February 27, 2023.

Authored by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the ways and pitfalls of using loans to buy the car they want.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers gain confidence to take control of their finances with precise, well-researched and well-researched content that break down complex subjects into digestible pieces.

The promise of the Bankrate promise

More info

At Bankrate we aim to help you make better financial choices. While we adhere to strict editorial integrity ,

this post may contain references to products from our partners. Here’s a brief explanation of how we make money .

The Bankrate promise

In 1976, Bankrate was founded. Bankrate has a long track record of helping people make wise financial decisions.

We’ve earned this name for over four decades by making financial decisions easy to understand

process and giving customers confidence about what actions to follow next. Bankrate follows a strict ,

So you can be sure that we’ll put your interests first. Our content is authored in the hands of and edited by

who ensure everything we publish will ensure that our content is reliable, honest and reliable. We have a team of loans journalists and editors concentrate on the areas that consumers are concerned about most — various kinds of loans available, the best rates, the best lenders, the best ways to repay debt, and much more. So you can feel confident when investing your money.

Integrity of the editorial process

Bankrate follows a strict standard of conduct, which means you can be confident that we’re putting your interests first. Our award-winning editors and journalists produce honest and reliable information to help you make the right financial choices. Our main principles are that we appreciate your trust. Our goal is to offer readers accurate and unbiased information. We have editorial standards in place to ensure that this happens. Our reporters and editors thoroughly verify the truthfulness of content in order to make sure the information you’re reading is accurate. We have a strict separation with our advertising partners and the editorial team. The editorial team of Editorial Independence Bankrate does not receive compensation directly through our sponsors. Editorial Independence Bankrate’s team of editors writes for YOU the reader. Our aim is to provide you the best advice to help you make smart financial decisions for your personal finances. We adhere to strict guidelines to ensure that our editorial content is not affected by advertisements. Our editorial team is not paid direct compensation from advertisers, and all of our content is verified to guarantee its accuracy. So, whether you’re reading an article or review, you can be sure that you’re receiving reliable and dependable information.

How we make money

You have money questions. Bankrate can help. Our experts have been helping you manage your finances for more than four years. We strive to continuously give our customers the right guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to strict standards standard of conduct, which means that you can be sure that our information is trustworthy and accurate. Our award-winning editors and reporters create honest and accurate content that will help you make the right financial decisions. The content we create by our editorial team is factual, objective, and not influenced from our advertising. We’re open about the ways we’re able to bring quality information, competitive rates and helpful tools to our customers by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods or services, or through you clicking specific links on our website. Therefore, this compensation may influence the manner, place and in what order products appear in listing categories in the event that they are not permitted by law for our mortgage home equity, mortgage and other home lending products. Other elements, like our own proprietary website rules and whether the product is offered in your region or within your personal credit score could also affect how and where products appear on this site. We strive to provide the most diverse selection of products, Bankrate does not include information about every financial or credit product or service.

The financial burden of ownership, from the initial purchase until fueling up at the station, has reached record levels for motorists in the past year. While gas prices have crept down and a gallon cost $3.38 on Feb. 24 as per AAA -financing a vehicle is becoming more expensive as . It costs drivers an average of $700 per month for brand new vehicle financing and $525 for vehicles used in the third quarter of 2022’s calendar, . With high costs to fill up and finance, along with the ever-present worries over the climate, many drivers are looking for a new solution. You may be thinking “Should I invest in an electric car?” And you wouldn’t be the only one. Electric vehicle (EV) market share has jumped in the past few years and TransUnion predicts that the EV market share will grow to . However, the high upfront cost of electric vehicles may not be the best choice for all drivers. Should I buy an electric car? The decision to purchase electric is one that should be considered with the same care as selecting the model and the maker of your next car. For some, the convenience of paired with minimal maintenance makes the high price tag worthwhile. “From a strictly consumer experience standpoint, purchasing an electric car will be positively uplifting,” says Brian Moody the executive editor of Autotrader. “In addition, the driving experience of electric cars is very rewarding. Acceleration is more brisk and electric vehicles come with cool features like the ability to heat up and cool your vehicle’s interior before you hit the road.” If you don’t have a fully electric vehicle and a hybrid model can be more fuel-efficient than gas-powered models and saving you money than an EV. According to Moody says, these tend to carry an affordable price and “function as an electric vehicle on a day-to-day basis with gas being used only for lengthy trips.” This is why they are a good choice for drivers interested in driving electric but who aren’t yet prepared to commit to a full-time commitment. The market for electric cars has seen a lot of innovation in the past two years and will continue to expand. While upfront costs have historically been high, they’re dropping as more options are made available and legacy brands dive into the electric car market. The U.S. auto market is moving towards electric vehicles. Record-high gas prices may have helped to propel EV sales. Electric vehicles accounted for 5.7 percent of new vehicle registrations in Q2 2022, according to . That may not seem big however it’s an impressive rise in comparison to the 1.5 percent share that EVs represented in the second quarter of 2018. The increasing interest in electric vehicles has led to advancements in available financing as well as tax credits. This market expansion is among the main reasons to consider buying an electric vehicle. Although Tesla is currently the most popular choice, TransUnion predicts the luxury brand will fall of the market share by 2025 because of the influx of new and more mainstream makes that are entering the market. Moody offers a similar outlook when it comes to car availability. “It was the norm that there were just a handful of very tiny or extremely expensive electric vehicles. While EVs are more expensive as a whole, some individual models are less expensive. For example, the Kia EV6 and Chevrolet Bolt.” The Nissan Leaf is another cost-effective EV option. EV drivers have nearly the same credit profile as the owners of luxury cars. Satyan Merchant Senior Vice President and automotive business leader at TransUnion, has seen increasing the popularity of EV financing and a subsequent impact on the overall automotive finance market. The study by TransUnion for 2022 found that out of the 33 million consumers between 2019 to 2021 who originated new traditional and EV loans, most EV customers had similar credit profiles as those who drive luxurious vehicles. The people who drove conventional EVs had an average score for credit of 775, falling in the top category. They also had an average APR of 2.8 percent. This is less than the average APR that was 4.9 percent for all new cars that are available to those with a prime credit score. The competitive average APR of electric vehicles isn’t solely due to the strong credit ratings of these motorists. They are also making . The study also showed motorists were much more likely begin their . In reality nearly one third of the respondents conducted online research on vehicle makes and models. Merchant says, “Our research clearly shows that consumers of electric vehicles have good credit risk profiles, but this group also has varying preferences, including a larger interest in looking for financing of vehicles through digital channels.” This larger appetite will likely be reflected in new options for EV financing, as well as an increasing number of vehicles that are available within the next few years. Options for eco-friendly financing are growing. This expanding market for electric vehicles has also brought about improvements in financing. Although consumers can borrow or use for electric vehicles, lenders specifically for EVs are becoming more popular and provide drivers with a tailored experience through . Alex Liegl, CEO of Tenet, discusses the company’s involvement with EV financing and the company’s goal to make climate-related investment an easy decision. The Tenet method “gives customers the freedom to control upfront costs for investment and also save money from down payments to pay for other expenses,” Liegl says. Additionally you can also choose a deferment option that shifts one portion of the cost to one final installment at the close of the financing. This allows for smaller monthly payments and an easy financing experiencehowever, a substantial amount may be due at the conclusion. The aim, Liegl says, is to “help customers completely enhance their lives through making environmentally sustainable home improvements more affordable, including installations of solar panels as well as battery backup, electric vehicles, smart appliances and more.” Other businesses, such as EV-Savings, act as an exchange for loan prequalification that is directly linked to incentives for electric vehicles and green loans that are available in your state. According to their website, customers could save as much as $200 per month on their monthly electric vehicle loan installments. Do EVs have less cost over their lifetime? Then what makes an electric car worth the cost? The satisfaction that comes with operating a vehicle that is better to the planet isn’t the only reason people are turning towards electric vehicles. It also has the potential to save money. Although it’s true that gas accrued while driving, in certain situations, driving electric could be less expensive in the long run. A survey in 2020 found that electric vehicle owners have saved on average and repairs throughout the duration of ownership as per Consumer Reports. This is due primarily to the differences in general maintenance and upkeep of EVs. These vehicles do not require oil maintenance and have an easier powertrain. Drivers of battery-electric vehicles and plug-in hybrid vehicles spent only 3 cents per mile over the lifetime of the vehicle in comparison to 6 cents per mile for traditional vehicles. However, driving electric isn’t all pleasant. CNET, a Red Ventures company, reported on a study conducted from We Predict that found . Although it’s true that drivers do not have to pay the cost associated with regular maintenance such as oil change and basic inspections, EV components are more expensive when it comes time to repairs. This means that the longer maintenance times and more expensive replacement parts can make driving electric the same, or more expensive more expensive than driving gasoline-powered vehicles. Moreover, electric cars can at a faster rate than the traditional gas-powered option due to technological advancements and the increasing demand for EVs has helped stabilize prices at the moment. How do you finance an electric vehicle The procedure of financing an electric car is fairly similar to that of a traditional gasoline-powered car. It is crucial for you to take the exact procedures you typically would, and available terms and understanding the weight that your credit score and past are able to bear. As mentioned, driving electric also carries potential state and federal benefits that you wouldn’t traditionally have access to. One of these is , an incentive of $7,500 for new, qualified plug-in and fuel-cell electric vehicles. New in 2023, you might also be able to claim the Federal tax credits . The car can’t be bought at a price greater than $25,000. If it qualifies, you can claim credits up to 30 percent of the sale cost, with a maximum of $4,000. The federal tax credits are both accompanied with income limitations and car requirements, so you need to make sure that you and your future EV are eligible before you begin. In addition, you may get the state tax credit based on where you live. Consider these questions before purchasing an electric car and operating an electric vehicle has its own set of needs which you may not have dealt with before. Consider these questions. 1. What is the range of your vehicle? It is essential to determine the distance your vehicle can take you for both your typical commute and for your traveling habits. Energy.gov reports the range of 2021 model year vehicles with the potential to cover as long as 405 miles. It is likely that drivers will be able to manage less “range anxiety” as their vehicles get up to speed with available technology. But it is wise to assess your requirements by incorporating your typical commute and expected leisure activities. 2. Should I rent before buying an electric vehicle? “Leasing an electric vehicle could be a good way to get a taste of ownership in an electric vehicle,” Moody says. is typically less expensive on a monthly basis and usually includes a warranty. If you are on the fence about driving electric, consider leasing one to check out the experience and feel. 3. Do I have access car chargers in my region? Although it is true that the Electric Vehicle Council found that the majority of electric vehicle owners charge up at home, many drivers don’t have the luxury of installing an EV charger that is Level 2. That’s okay. A majority of EVs now have the option to charge at any electrical outlet, however it may take all night or longer to get a full charge. However, you may require a faster charge at certain times. Many EVs take about 45 minutes to reach the 80 percent capacity of their batteries at a fast-charging station. To find out where you might be able to get speedier charging take a look at the map, which shows charging stations close to. Check that the charging stations you plan to visit are compatible with the car you’re considering. You should consider an electric vehicle when looking for your next car. Is an electric car worth it? Similar to other luxury vehicles, EVs can carry higher cost upfront and owners must have an excellent credit score to take advantage of lower interest costs. But as the industry grows and more mid-tier options come on the market, more motorists are able to think about electric options. Are you among that 36 per cent of Americans thinking about electric? Moody recommends aiming at the sweet spot, purchasing used and lightly used something in the 3-to-5-year range to enjoy a lower cost and a decent amount of warranty protection.

SHARE:

Writen by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the details of using loans to buy the car they want.

Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping readers gain the confidence to control their finances with concise, well-researched and well-written information that breaks down otherwise complicated topics into bite-sized pieces.

Auto loans editor

Related Articles Auto Loans 4 minutes read on Sep 30 2022

Auto Loans 6 min read Sep 23 2022

Car Insurance 7 min read Sep 02, 2022

Car Insurance 9 min read February 07 2022

About

Help

Legal Cookie settings Do not sell my info

How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods and, services, or for you clicking certain links posted on our website. Therefore, this compensation may affect the way, location and when products appear within listing categories and categories, unless it is prohibited by law. We also offer mortgage, home equity, and other home lending products. Other elements, like our own proprietary website rules and whether or not a product is offered in the area you reside in or is within your personal credit score can also impact the way and place products are listed on this site. While we strive to provide a wide range offers, Bankrate does not include specific information on every credit or financial product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |

|

(c) 2023 Bankrate, LLC. It is a Red Ventures company. All Rights Reserved.

Here’s more info about $250 payday loans online same day [paymeoq.ru] review our own internet site.