Electric Vehicle Costs—Impact of Every Passing Day
Just three days earlier, I penned an article about a research project on electric vehicle expenses that categorized all 50 states based on the five-year expenses of owning and running an electric car. The positive update from this study indicates that the overall ownership cost during this period showed a favorable outcome (in comparison to a similar gasoline-fueled vehicle) in 48 out of 50 states.
New Jersey emerged as the standout state for EV owners, presenting the potential for owners to be over $10,000 better off than their gasoline-powered counterparts after five years. However, the state recently introduced new charges by revoking a longstanding sales tax exemption for EVs. Besides the 6.6 percent state sales tax, EV buyers will now need to contribute to a state fund that supports road maintenance and other transportation infrastructure. This new annual fee commences at $250 per year and escalates by $10 each year until it reaches a maximum of $290.
These added charges knocked New Jersey from its prime spot as the top EV-supportive state. It now stands in third place, trailing behind Colorado and Illinois, as per the analysis conducted by J.D.Power and highlighted in Automotive News. For potential electric vehicle purchasers in New Jersey, substantial savings over a five-year ownership duration are still feasible, albeit not as abundant as those who made their EV purchases a few years back.
Changing Landscapes Each Year
The earlier sales tax exemption for EV acquisitions in New Jersey dated back to 2004, encompassing new and used zero-emission vehicle sales, rentals, and leases. This exemption was applicable to any zero-emission vehicle certified by the California Air Resources Board.
The new fee, directed towards the state’s Transportation Trust Fund, mirrors the destination of state gas taxes. This fund is essential for the state’s infrastructure, encompassing public transit, roadways, and bridges. In response to the shrinking revenues from state gas taxes due to enhanced vehicle fuel efficiency, various states have adopted similar fees. EVs, being gas-free vehicles, were historically excluded from contributing to this fund.
Adding to this, there are reports that New Jersey’s Board of Public Utilities is contemplating another alteration that could heighten the out-of-pocket expenses for EV owners. Currently, the state offers rebates of $4,000 for charger installations, but the proposal aims to reduce this amount by half.
The storyline of New Jersey serves as a cautionary narrative for EV owners. A significant part of the financial benefit of owning and running an electric vehicle hinges on incentives and programs that are subject to modifications. While the fundamental costs are recognized—initially higher EV costs offset by lower per-mile expenses due to electric motor efficiency—the positive development is that battery costs are decreasing, and automakers are intensifying competition. The cost of traveling a mile using electricity is expected to remain notably lower than using gasoline. As stated a few days earlier, analyzing these figures can be challenging, hence thorough research is crucial if these figures hold substantial weight in your decision-making process for vehicle purchase. The freshest and most updated
The post The Grand E: July 17, 2024 – Crucial News of the Day first appeared on Clean Fleet Report.