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Are you planning to buy an electric vehicle in the next year? If so, you’re in good company. The year 2023 saw record sales of EVs to the tune of 1.2 million. And experts predict that EVs will make up 10% of U.S. motor vehicle sales in 2024[1].
However, some big changes are happening from tax credits to charging stations. If you are considering making a new electric vehicle purchase, here are some things to consider.
One of the first things to be aware of is that government tax incentives for electric vehicles have changed. You can still apply for a federal tax of up to $7,500; however, the list of vehicles it applies to has gotten shorter.
Here are some of the requirements:
Some VINs within a make and model may apply, while others might not. Your dealership should be able to tell you which ones meet the requirements. You can also search for eligible vehicles on the U.S. government website devoted to fuel economy information[2].
One advantage is you no longer have to wait until tax season to apply for your tax credit. You can now get the credit as an instant discount when you purchase the car at the dealership.
Search eligible vehicles to make sure you get the tax credit before you purchase. The new requirements only apply to purchased vehicles, not leased ones, so if the model you are interested in is no longer eligible for the credit, you could consider leasing it.
Another change in the wind is the type of charging stations that vehicles will use. Tesla developed the North American Charging Standard (NACS) and has created a large network of charging stations that as of 2023 have only been available for Tesla vehicles. Meanwhile, the Combined Charging System is the standardized EV charging protocol for most other electric vehicles in the U.S[3].Â
However, in 2023, several automakers including Ford, General Motors, Volvo, Nissan, Honda, Rivian, Mercedes-Benz and Jaguar all announced they would be joining the NACS and making vehicles using these charging connectors starting in 2025[4].
The U.S. government is also helping the push for greater infrastructure for EVs. The Biden administration announced $623 in grants for building out EV charging networks to create half a million publicly available chargers by 2030[5].
This move toward consolidation is likely a good move for EV charging availability in general. After all, if all electric cars are designed with the same charging connectors, the network of compatible charging stations will only grow. That said, it does mean you will want to think twice about buying a CCS vehicle in the interim, knowing the infrastructure may not be supported in the future.
Growth in electric vehicles has slowed, but the industry is still growing. The technology is also improving, making batteries more affordable and more efficient. This can open up the market to people who might previously have considered EVs out of their price range.Â
A survey we ran last year found that one in five people have considered going fully electric, and that the primary reason for holding back was cost.Â
New EVs are seeing more incentives and more discounting which is likely to continue in 2024. The reason? The slower growth for automakers is mostly a result of supply and demand. Demand has gradually increased, but the supply has exploded with much higher inventory as more and more automakers focus on EVs[6].
If you’re considering buying an electric vehicle, you may want to wait and see if prices will further come down. You can also consider buying used as those prices have dropped about 40% year over year[7].
For financial or environmental reasons, buying an electric car might be a good choice for you in 2024. If you’re interested in learning more about electric vehicles, here are a few more articles to consider:
Are electric cars worth it? 12 EV myths, debunked
Gas vs. hybrid vs. electric cars: A complete guide
How does owning an electric vehicle affect your auto insurance?
