EV Costs Vary by State
JD Power study shows affordability depends on location.
EVs still make up just 7% of U.S. new-vehicle sales, and Americans consistently rank EVs’ higher cost as a major factor in choosing to stick with internal-combustion-engine models.
IMAGE: Pexels/LeeRosario
The cost of owning an electric vehicle can vary widely depending on the state the state the consumer lives in, a new study by J.D. Power shows.
Greater EV adoption is being pushed by the Biden administration and many states as a way to curb environmentally harmful emissions, and they’re using federal and state tax breaks to help make that happen, though many consumers are still hesitant, often due to the higher cost of ownership compared to gas-powered models.
J.D Power’s study shows that differences in state-level purchase incentives, in addition to varying energy costs, can make EV ownership more affordable in some states than others.
The study uses the cost of owning a Ford F-150 Lightning electric pickup truck as a comparative example. It says that five-year operating costs for the Lightning are $1,010 less expensive in Texas than in New York.
Affordability is a major factor in the relatively low U.S. EV adoption rate. EVs still make up just 7% of U.S. new-vehicle sales, and Americans consistently rank EVs’ higher cost as a major factor in choosing to stick with internal-combustion-engine models.
J.D. Power says EV affordability is improving, though, with overall affordability scores up 2.3 index points this mont.
Originally posted on Auto Dealer Today
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →