I saw a Chevy Volt in a parking lot the other day, and I have to say, it was a pretty cool looking car. To be honest, I hadn’t realized that you could actually purchase one already, so I was taken by surprise a little.
“That’s got to be expensive,” I thought as I drove by. But then I started to wonder if the price of an electric vehicle was actually worth it because of the potential savings involved. With a little research, I found this.
Cost of Chevy Volt: $40,280
Tax Credit: up to $7,500
*According to the IRS website, the tax credit is outlined as follows:
For vehicles acquired after December 31, 2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.
Advertised Price (including tax credit) $32,780
That’s still a little too pricey for my taste, but if you’re in the market for a brand new car and that fits your budget, we might be onto something here.
OK, What about the gas mileage?
The Volt claims 35 miles on a single charge, which is estimated to cost $1.50 in electricity. What a minute? That sounds like $1.50 ‘a gallon’ if we’re comparing it to a car that can get 35 MPG with gas. There’s no such thing as a free lunch, remember?
Once the initial charge is used up, the Volt will kick in a gas powered generator that will charge and power the car for hundreds of additional miles.
According to fueleconomy.gov, the Chevy Volt averages about 90 ‘MPG’ on electricity only and a combined 37 MPG on premium gas only.
The annual fuel costs between a Chevy Volt and a Honda Accord are as follows:
Chevy Volt: $594
Honda Accord: $2,042
With the sticker price of the Accord at $20,000 and the after-rebate price of the Volt at $32,000, it would take about 8 years of driving the same Volt to recoup the difference in cost (of $12,000)
(I just used the Honda Accord because it a very popular vehicle. Run a similar comparison on fueleconomy.gov for another car)
I won’t be purchasing a brand new electric vehicle any time soon, but it’s interesting to see how they’re starting to become more popular. Just remember to do your research and don’t let the hype of new products keep you from making a smart financial decision.
Would you ever consider purchasing an electric vehicle?
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{ 4 comments… read them below or add one }
No, the differential is still too great! Don’t forget replacing the batteries around the 8th year. I think you would have to drive alot to make it worthwhile. My wife and I only drive roughly 10,000 miles each per year.
Didn’t realize that about the batteries, but it makes sense! I drive even less than that, so it’s definitely not worth it for me.
Good, informative post Tim. Thanks!
Would I EVER consider buying an electric vehicle? Well, yes, but doing so is not a blip on my radar. Maybe I would wait until one is 8 years old (see Krantcents comment) and the original batteries have been replaced. That was meant as a joke, but seriously (like Krantcents) I don’t think I would ever drive enough miles to justify the cost.
I think they would be cool to drive, but owning one today…I’m with you Joe.
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