Buying a new electric car or minivan may sound like a lot of money, but the average price for a new model has plummeted by more than 50 percent in the last few years, according to a new study by Edmunds.com and Autostraddle.
The savings are particularly important for younger people who tend to have a higher car insurance premium, according the study.
But if you’re looking for a better value, the biggest savings can be found at the local gas station, as many electric cars cost around $40,000 to $50,000.
Edmunds calculated the cost of the cheapest electric car from the gas station and found that the savings could be up to $1,200 a year.
Edmund also found that gas stations will save you up to 20 percent in taxes by selling you an electric vehicle for a low price, as long as you buy a full electric vehicle.
So how much do you really need to save?
Edmunds said the average electric car is worth around $36,000, and the average minivan is worth about $27,000 in today’s dollars.
However, if you live in a low-income area or have a family member with a chronic medical condition, you may need to consider a higher-cost car, as Edmunds found a Tesla Model S sedan in a lower-priced state will cost more than a Toyota Prius.
The average price of a gas station electric car will range from around $8,000 for a Prius to about $30,000 or more for a Tesla.
The average electric vehicle will cost about $26,000 at the gas pump, and about $17,000 if you want to lease it, according Edmunds, which makes it difficult to get a perfect deal.
You’ll also have to pay for the upfront costs of buying the car and leasing it, as well as other fuel costs, such as battery maintenance.
Edmund said you’ll need to be willing to pay a little more in state and local taxes.
But for the most part, electric vehicles are worth it for most people.
Edmund’s research found that people who spend the most on gas are typically more likely to have low insurance costs.
You can see a breakdown of how much gas you’ll pay for and how much you’ll save by clicking here.