President Donald Trump has stated that he wants to end the federal electric vehicle (EV) credits signed into law in 2022, which offer a $7,500 tax credit to EV buyers, federal support for vehicle-charging stations and low-interest loans for car makers who build EV plants.
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While federal credits are not the only thing pushing people to purchase EVs, some worry that this move could disincentivize their purchases.
Aubrey Gunnels, co-founder and CEO at 3V Infrastructure, argued that the Trump administration is actually pro-EV, “just on different terms than the Biden administration.”
She interpreted Trump’s “Unleashing American Energy” executive order to be more about the Trump administration’s gripe that EV programs in the U.S. offer “unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs.”
In fact, she believes that as part of the Trump administration’s move to bring more manufacturing to the U.S., and to compete with China, “winning in the EV space is imperative” because “the world is moving to EV.”
However, with an unclear picture of the fate of energy prices in the near future and a possible end to the tax credit, would EVs still be worth buying for the average consumer? Experts offered their opinions.
Other Savings
There are still plenty of good reasons to invest in EVs, which offer significant advantages that extend well beyond their upfront costs and the availability of tax credits, according to Anthony Guckert, president of The Traffic Group.
“EVs provide tangible advantages over internal combustion engine (ICE) vehicles in key areas such as cargo capacity, fuel savings and performance, making them a compelling option for modern drivers,” he explained.
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Fuel Savings
Operating an EV isn’t just about reducing emissions either; it’s also about saving money on fuel, Guckert said, particularly for people with access to home charging, which can make the cost of running an EV significantly lower than putting gas into a car.
He shared his own cost savings. When driving his EV, he spends about $60 to $90 per month on additional electricity to charge his EV, versus $250 to $300 per month when he drove a gas powered car. He drives an average of 20,000 miles per year.
Maintenance Savings
The savings with an EV become even more pronounced when considering long-term ownership, Guckert suggested because EVs have “fewer moving parts and lower maintenance costs — no oil changes, fewer mechanical failures and regenerative braking reducing wear on brake pads.”
This makes them an attractive option for both daily commuters and long-distance travelers looking for reliability and cost efficiency.
Performance Benefits
While people may think of EVs as being less powerful than ICE vehicles, on the contrary, Guckert said performance was one of the most significant factors in his decision to switch to an EV pickup truck.
“Having driven a Toyota Tacoma for over three years before transitioning to the Rivian R1T, I immediately noticed the drastic difference in power and acceleration. The instant torque provided by an EV motor results in seamless and rapid acceleration, making highway merging effortless.”
Rapid Technological Advancements Can Lead To Quick Obsolescence
While EVs have numerous benefits, Rei Vardi, the CEO and founder of Eon, pointed out, “The EV market evolves more like the smartphone industry, with frequent upgrades and improvements.”
This can lead to cars feeling outdated due to rapid advancements, he said. It might make waiting for the next model of a particular car you have your sights on better than buying right away.
Cost of Long-Distance Travel and Fast Charging
While EV savings are great for shorter drives, Vardi said that for long-distance driving, EV savings shrink “because fast charging is more expensive than home charging.” Fast charging is still cheaper than gas but not by a huge margin, he explained.
All of that said, the financial benefits of EVs really depend on each consumer’s individual driving habits and charging accessibility, Vardi said. He doesn’t feel that the removal of tax credits won’t drastically slow EV adoption, since EVs remain a smart choice for urban commuters and long-term ownership. They just require careful consideration for frequent long-distance drivers.
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This article originally appeared on GOBankingRates.com: Trump Wants To End the EV Tax Credit — Are EVs Still Worth Buying?
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