Affordability of Electric Vehicles (EV's)

At $15,000 to $40,000, EVs cost
more than comparable, mass-produced
gasoline or diesel-powered
vehicles. Some manufacturers lease
EVs to minimize maintenance costs
and potential risks such as lower
resale values associated with the new
technology. To encourage EV purchases,
some government agencies
offer incentives to offset the higher
initial costs. For example, the federal
government provides a tax credit
equal to 10 percent (up to $4,000) of
the purchase cost of an EV. Some
states offer partial sales tax exemptions,
one-time income tax credits, or
reduced license and registration fees.
EV purchase prices can potentially
be offset by lower “fuel” and maintenance
costs. The average monthly
electricity cost for a typical EV driver
is less than $15, compared to $50 for
gasoline. If EVs are recharged
overnight, off-peak rates can decrease
the cost of powering the vehicles. EVs
can also have lower maintenance costs
because they have fewer moving parts
than internal combustion engines and
do not require tune-ups or oil
changes. One obstacle to affordability,
however, is that EVs’ lead-acid batteries
must be replaced every 3 years at a
cost of approximately $8,000.