Last Updated 2 years ago
As we are now a few weeks into 2024, it is crystal clear that the price of electric vehicles is getting better and better.
There are more competitors in the EV space and companies are cutting prices to make their cars more appealing to us, the customers.
Let’s face it – it’s a crazy world out there! With so many different competitors, now we have available not only Tesla, Rivian, or Lucid vehicles, but also the traditional automakers like Ford, Nissan, and Chevrolet are offering fully electric cars. Not to mention Asian carmakers are looking to enter the U.S., such as BYD with a wide range of different electric cars.
But, what does it mean for us as buyers? What discounts are out there for EVs?
The $7,500 Federal Tax Credit Is Now Applied Instantly
According to the IRA (the Inflation Reduction Act), some electric vehicles are eligible for a direct $7,500 tax credit at the point of sale.
What does it mean? When you go to the dealership and buy an electric vehicle, you will get a direct discount of $7,500 on the list price. That’s it.
Of course, not everything is rainbows and sunshine, there are some limitations based on your income to be eligible for the $7,500 tax credit, as reported by the U.S. Department of Energy:
Adjusted Gross Income limits:
- $300,000 for married couples filing jointly.
- $225,000 for head of households
- $150,000 for all other filers
Additionally, the car should be for personal use in the U.S. And the MSRP should be greater than $55,000 for cars and $80,000 for trucks, SUVs, and vans.
Tesla and Chevrolet Are Eligible for The Discount
The most popular cars that show on their websites that are eligible for the tax credit are Tesla and Chevrolet.
When looking at Tesla, they mention that the Model Y and Model X with Dual Motor are eligible. For Chevrolet, their Chevy Bolt EV, and its crossover SUV version the Bolt EUV are also eligible.
But which model is a better deal? Let’s look at the numbers…
- The 2024 Tesla Model Y has a starting price of $43,990, with the Federal Tax Credit (a.k.a. discount) you would be paying $36,490 meaning 17% off the price.
- The 2024 Tesla Model X Dual Motor shows a starting price of $79,990. Thus the discount is only 9.3%, so you will end up paying $72,490.
Now, let’s compare it with the 2023 Chevrolet Bolt, which is the latest model released to the market and it has been discontinued in 2024:
- Chevy Bolt EUV has a starting price of $27,800, with the applied tax credit, the cost goes to $20,300 or a 27% discount.
- Chevy Bolt EV shows a starting price of $26,500. After the discount, you only pay $19,000 – It’s a discount of 28% off the MSRP.
After looking at all these options, the Chevy Bolt EV has the ultimate lowest price right now. With a 28% discount – It is a bargain!
Why This Is A Good Moment To Buy A Chevy Bolt EV
As we mentioned before, the Chevrolet Bolt will be discontinued in 2024. Hence, there is a limited number of units available that buyers can get at this low cost.
Now, let’s look at it from a different perspective. The 2 cheapest gasoline-engine cars available now on Chevrolet’s website are:
The 2024 Trax with a starting price of $20,400, and the 2024 Malibu starts at $25,100.
Note that the Federal tax credit doesn’t apply to these models. Therefore, none of these gas-only vehicles are as affordable as the Chevy Bolt EV.
There Are Even More Savings When Owning An EV
On top of these, we all know that owning an EV comes with savings in gasoline.
CNBC explains that on average, an EV can save up to $10,000 in gasoline over the lifetime of the vehicle, which they defined as 200,000 miles.
Cost savings at the pump and savings in time, since the electric vehicles can be charged at home or while you’re at the office. You can charge your car without overseeing it – surely it is not safe to do the same when pumping gasoline into a car.
Are you still reading? OK, there is one more…
According to the Consumer Report, the maintenance and repair costs of electric vehicles can be only 50% compared to those of gasoline cars, and this can keep some bucks in your pocket.
This is not necessarily because the EVs don’t brake, of course, the technology is improving, but is relatively new in some models. To compensate for this, automakers offer very attractive warranties.
In the case of the Chevrolet Bolt its Battery Limited Warranty covers the battery and certain electric components for up to 8 years or 100,000 miles.
Would you buy an electric car in 2024?