Making the Transition to an Electric Vehicle

An electric car will typically add anywhere from $30-$60 to your monthly electric bill. Same page link to footnote reference ⁴

Electric vehicles tend to cost marginally more to insure than equivalent gas-powered cars. That’s largely because electric vehicles are typically pricier to both buy and repair. Same page link to footnote reference ⁵

As of June 2024, the average transaction price of a new electric vehicle was $56,371. This is higher than the average transaction price of a new gas-powered car, which was $48,644. Same page link to footnote reference ⁶

The federal government currently offers a rebate of up to $7,500 off the cost of a fully-electric car, and plug-in hybrids are also eligible for the rebate, depending on their battery capacity. This rebate is only available for vehicles with final assembly in North America. For a list of vehicles that qualify, please access this resource from the U.S. Department of Energy.

There may be additional rebates and discounts offered by your state, local municipality, or local electricity provider. These may include additional rebates off the cost of the car, rebates on home charging systems, discounts on electric charging rates or perks like preferred parking or carpool lane access. Discover the savings you may be eligible for using this incentive look-up tool.

The Inflation Reduction Act implements up to a $7,500 tax credit for new EVs and a $4,000 tax credit for used EVs. New EVs eligible for the tax credit must be assembled in North America, and potentially meet other manufacturing requirements. To know which vehicles qualify, refer to this resource from the U.S. Department of Energy.

Starting on January 1, 2023, the new car credits were limited to single filing taxpayers with an annual income of $150,000 or less or $300,000 or less for joint filers. Used car credits were limited to single filing taxpayers with an annual income of $75,000 or less or $150,000 or less for joint filers.​

Also as of January 1, 2023, new EVs must have an MSRP of $55,000 or below to qualify for the tax credit. SUVs, vans, and pickup trucks must not exceed an MSRP of $80,000 in order to qualify.

Used EVs are eligible as long as they cost no more than $25,000. Same page link to footnote reference ⁷ Leased EVs may follow different rules.

In the U.S., the average cost of a kilowatt of energy is approximately 12.73 cents. Same page link to footnote reference ⁸ If you drive 1,000 miles a month, the cost to fuel your electric vehicle will be just over $36. However, the cost to charge an EV is dependent on many factors, including your location, vehicle and power source. Charging at home and charging with a public charger also have different costs.

Chase provides financing for a wide range of vehicles, including both electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). Financing for EVs and PHEVs can optionally include the cost of EV charging equipment for your home.​

Additionally, Chase offers a special 90-day pre-approval rate — rather than the typical 30-day rate — for Tesla models to accommodate the brand’s pre-order timing.​

To get started, go to chase.com/autoopens ina new window.

The short answer is no, EVs can be charged anywhere you can find an outlet. However, for people living in multi-family housing, home charging will require additional planning.

As electric vehicles continue to become more common, property managers are more likely to offer home charging options for residents driving electric vehicles. EV drivers can discuss with building management the practicality and possibility of installing shared charging equipment on building grounds. Some states and cities offer programs that will help cover the costs associated with the installation of shared charging in multi-family parking lots, and strategies such as assigned parking for EV owners can make home charging convenient and easy for residents. Same page link to footnote reference ⁹

Other options for EV owners without a garage include finding a supercharging station close to home, charging at a location close to work, or working with your employer to coordinate a charging station on company grounds.

EV maintenanceopens in a new window costs are typically lower than conventional automobiles. EV owners who drive 15,000 miles per year could save approximately $3,000 in repair and maintenance costs over a 5-year period compared with a gasoline-powered car. Same page link to footnote reference ¹⁰

Selecting a repair shop for electric vehicle repairs depends on the make and model of the car and the nature of the issue. For standard repairs such as rotating tires, inspecting the suspension, or replacing cabin filters and wiper blades, any local shop can be of service. However, for issues relating to the EV battery or other EV technology, the vehicle should be taken to a local dealership or other qualified mechanic.

PHEVs are Plug-in Hybrid Electric Vehicles, and they have both a gas-powered engine and an electric motor that is charged by plugging it into an outlet. Same page link to footnote reference ¹¹ Some PHEVs operate on electricity until the battery is nearly empty, and then switch over to their gas-powered engine. Other PHEVs—sometimes called “blended mode” PHEVs—use gasoline and electricity simultaneously to power the vehicle while the battery has charge. Either way, PHEVs are able to run on gasoline alone, even when the electric battery is fully depleted.