Open navigation Main Menu Mortgages

Refinancing your existing loan Finding the right lender Additional Resources
Looking for a financial advisor? Take our 3 minute quiz and connect with an advisor today.



Main Menu Banking

Calculators to compare accounts Use the calculators and get advice Bank reviews
Looking for a financial advisor? Do our 3-minute quiz and then match up the advisor you want today.



Main Menu Credit cards

Compare with other categories Compare by credit needed Compare by issuer Get advice
Are you looking for the ideal credit card? Narrow your search with CardMatch(tm)



Main Menu Loans

Personal Auto Loans, Loans for Students, and Loans to Autos Loan calculators
Find the perfect personal loan within 2 minutes or less. You can also answer a few questions to be offered loans, with no effect on your score on credit.



Main Menu Investing

Top of the Brokerages, and Rob-Advisors. Learn the basics Additional resources
Looking for a financial advisor? Do our 3-minute quiz and then match up the advisor you want today.



Main Menu Home equity

Get the best rates Lender reviews. Calculators. base
Looking for a financial advisor? Take our 3 minute quiz and match to an adviser today.



Main Menu Real estate

Selling a home Buying homes Finding the right agent Additional information
Looking for a financial advisor? Take our 3 minute quiz and connect with an advisor today.



Main Menu Insurance

Car Insurance Homeowners insurance Other insurance Company reviews
Looking for a financial advisor? Take our 3 minute quiz and then match up the advisor you want today.



Main Menu Retirement

Retirement plans & accounts Get the basics of retirement calculators Additional sources
Looking for a financial advisor? Try our three minute test and connect with an advisor today.



Search open Close search

Submit


Is now a good moment to purchase an electric vehicle? Considerations when financing an EV Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by providing you with interactive financial calculators and tools as well as publishing original and objective content, by enabling you to conduct your own research and compare information for free - so that you can make informed financial decisions. Bankrate has agreements with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make money The products that appear on this site are from companies who pay us. This compensation can affect the way and where products appear on the site, such as the order in which they may appear within the listing categories, except where prohibited by law for our loan products, such as mortgages and home equity, and other products for home loans. However, this compensation will have no impact on the information we publish, or the reviews that you see on this site. We do not contain the vast array of companies or financial deals that could be accessible to you.



SHARE:

You are on this Page On This Page
Prev Next







Phynart Studio/Getty Images
7 minutes read. Published February 27, 2023
Authored by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the ways and pitfalls of using loans to buy the car they want.







The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are committed to helping readers gain confidence to control their finances through providing concise, well-researched, and clear information that breaks down otherwise complex topics into manageable bites.









The Bankrate promise
More info
At Bankrate we strive to help you make better financial choices. While we are committed to strict editorial integrity ,
This article may include the mention of products made by our partners. Here's an explanation for how we earn money .

The Bankrate promise
Founded in 1976, Bankrate has a long track history of helping people make informed financial decisions.
We've maintained our reputation for over four decades by making financial decisions easy to understand
process and giving customers confidence in which actions to take next. Bankrate follows a strict ,
So you can be sure you can trust us to put your needs first. Our content is written in the hands of and edited by ,
who ensure everything we publish ensures that everything we publish is accurate, objective and trustworthy. We have a team of loans reporter and editor are focused on the points consumers care about most -- the different types of lending options, the best rates, the best lenders, how to pay off debt and much more. So you can feel confident when making your investment.



Editorial integrity
Bankrate adheres to a strict code of conduct , so you can trust that we put your interests first. Our award-winning editors and journalists create honest and accurate information to help you make the right financial choices. The key principles We respect your confidence. Our goal is to offer readers truthful and impartial information, and we have editorial standards in place to ensure this happens. Our editors and reporters rigorously check the accuracy of editorial content to ensure that the information you're reading is accurate. We keep a barrier with our advertising partners and the editorial team. The editorial team of Editorial Independence Bankrate does not receive compensation directly through our sponsors. Editorial Independence Bankrate's editorial staff writes in the name of YOU - the reader. Our aim is to provide you the best advice to help you make smart personal financial decisions. We follow strict guidelines to ensure that our editorial content isn't in any way influenced by advertising. Our editorial team is not paid direct compensation from advertisers, and all of our content is verified to guarantee its accuracy. Therefore, whether you're reading an article or a review, you can be sure that you're getting credible and dependable information.



How can we make money?
If you have questions about money. Bankrate has the answers. Our experts have helped you understand your money for over four years. We continually strive to provide consumers with the expert guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to strict standards policy, which means you can be confident that our information is trustworthy and accurate. Our award-winning editors and journalists provide honest and trustworthy content to help you make the best financial decisions. Our content produced by our editorial team is factual, objective and uninfluenced by our advertisers. We're transparent about the ways we're in a position to provide quality content, competitive rates and useful tools for our customers by describing how we earn our money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or when you click on certain links posted on our site. So, this compensation can affect the way, location and in what order products are listed, except where prohibited by law. We also offer mortgage, home equity and other products for home loans. Other elements, like our own rules for our website and whether a product is available in the area you reside in or is within your self-selected credit score range may also influence how and where products appear on this site. Although we try to offer a wide range offers, Bankrate does not include specific information on each financial or credit item or service.



It is a financial strain car ownership starting from the first purchase through refilling at the gas station, reached record levels for drivers in the last year. Although gas prices have climbed down -- a gallon averaged $3.38 in February. 24 according to AAA -- financing a vehicle is getting pricier as . The average cost for financing is $700 a month for new vehicle financing and $525 for vehicles used in the third quarter of 2022's calendar, . With high costs to fill out and fund, along with the ever-present concerns about the climate, many drivers are itching for another solution. You might be asking "Should I invest in an electric car?" And you wouldn't be alone. Electric vehicles (EV) market share has jumped over the last few years and TransUnion predicts that the market share for EVs will grow to . However, the high upfront cost of electric vehicles may not be the best choice for everyone. Do I need to buy an electric vehicle? The decision to purchase electric must be approached with the same vigor as choosing the model and make of your next car. For some, the ease of having a low maintenance will make the expensive cost of the price worth it. "From a strictly consumer experience viewpoint, buying an electric vehicle is extremely positive," says Brian Moody the executive editor of Autotrader. "In addition to that, driving in electric cars is very rewarding. Acceleration is more brisk and electric cars come with amazing features, like the ability to heat up or cool down your vehicle's interior prior to hitting roads." In the event that you are you don't have a fully electric vehicle and a hybrid model can be more fuel-efficient than gas-powered models and costing less than an EV. As Moody says, these tend to carry a lower price tag in addition to being able to "function like an electric vehicle in the daytime and consume gas only on lengthy trips." This is why they are a good choice for drivers interested in driving electric but who aren't yet willing to commit completely. The electric car market has seen great innovation over the last two years, and is set to continue growing. Although upfront costs have historically been high, they're descending as more options become available , and traditional brands are dipping into the electric car market. The U.S. auto market is moving towards electric vehicles. Record-high gas prices may have helped to boost sales of electric cars. EVs made up 5.7 percent of all new vehicle registrations in the second quarter of 2022, according to . It may not seem like much however it's an impressive improvement over the 1.5 percent share that electric vehicles accounted for in the second quarter of 2018. This growing interest in electric vehicles has led to advances in financing options, including and tax credits. This increased market is among the main motives to think about buying an EV. While Tesla currently dominates the market, TransUnion predicts the luxury brand will fall of the percentage of the market by 2025 because of the increasing number of innovative and mainstream brands coming into the market. Moody has a similar view when it comes to the availability of vehicles. "It was the norm that there were only one or two small or expensive electric cars. While EVs tend to be more costly as a whole, some individual models are more reasonably priced. For instance the Kia EV6 and Chevrolet Bolt." The Nissan Leaf is another cost-effective electric vehicle. EV drivers have almost the exact same credit profiles as those driving luxury Satyan Merchant the senior vice president and business leader for automotive at TransUnion has noticed a growing popularity in EV financing and a subsequent impact on the automobile finance industry. TransUnion's 2022 study reported that, of 33 million consumers between 2019 and 2021 who originated new EV and traditional vehicle loans the majority of EV-related customers had similar credit profiles as those who drive high-end vehicles. People who owned conventional EVs had an average score for credit of 775 and fell into the category of prime. The average interest rate was 2.8 percent. This is lower than the median APR that was 4.9 percent on all new cars for those with a prime credit score. The high average competitive APR for electric vehicles isn't solely due to the strong credit scores of these drivers. Buyers are generally also making . The study also found that drivers were more likely to start their research . In fact, more than one-third conducted research online on car types and makes. Merchant explains, "Our research clearly shows that consumers of electric vehicles have excellent credit risk profiles, however they also have varying preferences, including a larger desire to shop around for vehicle financing by digital channels." The greater interest will likely reflect in the new options available for EV financing combined with an expansion of available vehicles expected within the next few years. Alternatives for environmentally friendly financing are increasing. The growing market for electric vehicles has also brought about improvements in financing. While consumers can borrow or use to their electric vehicles, EV-specific lenders are becoming more popular and provide drivers with a tailored experience by offering . Alex Liegl, CEO of Tenet, discusses the company's involvement in EV financing and the company's goal to make climate-related investment an easy decision. The Tenet approach "gives customers the flexibility to manage upfront investment costs and also save money from down payments to use for other expenses," Liegl says. Additionally the deferment option that shifts a portion of the price into one final payment at close of the financing. This allows for lower monthly payments and an easier financing experiencehowever, a significant amount could be due at the end. The goal, Liegl says, is to "help customers completely transform their lives with electricity by making environmentally sustainable home improvements less expensive, such as installations of solar panels and battery backups, electric vehicles, smart appliances and more." Other organizations, like the ones listed above , serve as a marketplace for loan prequalification directly connected with incentives for EVs and green loans that are available in your state. According to its website, customers could save as much as $200 each month on monthly EV loan payments. Are EVs able to have a lower lifetime cost? Then, is an electric car worth it? The positive feelings that come when you drive a car that is more sustainable to the planet isn't always the sole reason why people are switching to EVs. It also has the potential to save money. While it's the case that gas costs are higher when driving, in some situations, driving electric could be cheaper in the long run. In a 2020 survey, drivers of electric vehicles reduced the cost of repairs throughout the duration of ownership, according to Consumer Reports. This is due in part to the distinct differences in maintenance that EVs have. They don't need oil changes or maintenance, and they have a simpler powertrain. Those driving battery-electric vehicles and plug-in hybrid vehicles paid only 3 cents per mile during the life of the vehicle, compared to 6 cents for traditional vehicles. However, driving electric isn't all rosy. CNET, which is a Red Ventures company, reported on a study conducted of We Predict that found . Although it's true that drivers can avoid the additional cost associated with , like oil changes and routine inspections, EV parts are much more expensive when it comes to repairs. This means that longer maintenance time and more expensive replacement parts can result in electric cars being more expensive, or even less as driving gas-powered vehicles. Moreover, electric cars can be more efficient than traditional gas-powered vehicles because of the speed of tech advancements however, the present demand for EVs has helped stabilize prices at the moment. How to finance an electric vehicle procedure of financing an electric car is fairly similar to the traditional gas-powered vehicle. It is crucial for you to take the exact procedures you typically would, and available terms and understanding the weight that your credit score and your history carry. Like we said, driving electric also carries potential state and federal benefits that you wouldn't traditionally have access to. One of these is , an incentive worth $7500 for new, certified plug-in as well as fuel-cell vehicles. If you buy a new vehicle in 2023, you might also be able to get an Federal tax credits . The car cannot be bought at a price greater than $25,000. If it qualifies, you can claim credits up to 30 percent of the sales price, which is capped at $4,000. Both federal tax credits come with income limitations and vehicle requirements, so be sure you and your potential future EV are eligible before you begin. In addition, you may get the state tax credit based on where you live. Questions to ask yourself before purchasing an electric vehicle or operating an electric car comes with an additional number of demands which you may not have encountered in the past. Think about these issues. 1. What is the vehicle range? It is essential to determine the distance your vehicle can get you -- for both your normal commute and for your traveling habits. Energy.gov reports that the 2021 model year cars with possible ranges of as long as 405 miles. It is likely that drivers will have lower levels of "range anxiety" as their vehicles get up to speed with the latest technology. It is advisable to check your needs by factoring in your normal commute, as well as your expected leisure activities. 2. Should I rent before buying an electric car? "Leasing an electric vehicle can be a good option to test the waters of ownership in an electric vehicle," Moody says. is typically less expensive on a monthly basis and generally comes with a guarantee. If you are on the decision of driving electric you should consider leasing one to check out the feel and experience. 3. Do I have access vehicle chargers in my area? Even though there is evidence that Electric Vehicle Council found that about of EV drivers charge up at home, many drivers do not have the luxury of having a Level 2 charger. That's okay. A lot of EVs now have the option to charge using any outlet that is electrical, but it might take all night or longer to get a full charge. However, you may need a speedier charge at times. Many EVs take around 45 minutes to reach the 80 percent capacity of their batteries at the fastest charging station. To determine where you might be able to obtain a faster charge, check out the map, which shows charging stations in the vicinity. Check that the charging stations you intend to use are compatible with the car you're looking at. Think about an electric car when you're shopping for your next car. If you're wondering, is an electric car worth it? As with other luxury vehicles, EVs can carry higher initial costs and owners must have a strong credit profile to benefit from lower interest costs. But as the industry grows and more mid-tier options come on the market, more motorists are able to look into electric alternatives. Are you among the 36 percent of Americans considering electric? Moody recommends aiming at the sweet spot, buying lightly used -- something in the 3-to-5-year range to get a better price and a good amount of warranty coverage.


SHARE:
Writen by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the details of borrowing money to purchase the car they want.



Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain confidence to take control of their finances through providing precise, well-studied information that breaks down complicated topics into bite-sized pieces.






Auto loans editor




Other Articles Related to Auto Loans 4 min read September 30 2022

Auto Loans 6 min read Sep 23, 2022

Car Insurance 7 min read Sep 02, 2022

Car Insurance 9 min read February 07, 2022






About
Help
Legal Cookie settings Do not sell my info
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products or services, or when you click on certain links posted on our website. This compensation could affect the way, location and in what order items appear in listing categories and categories, unless it is prohibited by law for our mortgage, home equity, and other home loan products. Other factors, such as our own website rules and whether or not a product is available within your area or at your own personal credit score could also affect how and where products appear on this site. While we strive to provide the most diverse selection of products, Bankrate does not include information about every credit or financial product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |
|

(c) 2023 Bankrate, LLC. The Red Ventures company. All Rights reserved.

When you have just about any inquiries concerning wherever along with how you can employ payday loans online same day deposit california (https://money-asfq.site), you possibly can e-mail us at the web page.