Recent findings from Auto News and J.D. Power reveal a compelling truth: Electric vehicles (EVs) are more cost-effective than internal combustion engine cars over a five-year period in most U.S. states.

According to our data, these EV savings are available across all 50 states. Let’s delve into the numbers and explore how your dealership can leverage this information to educate customers and close more EV sales.

Fuel cost savings: A significant advantage

While we know EV price tags tend to be higher than gas cars, the savings from lower operating costs and incentives on EVs often outweigh the initial price difference, making EVs a financially savvy choice in the long-run. For your customers whose driving habits and lifestyle make it feasible to drive an EV, going electric could be the best option for them from an economic standpoint.

If you look into fuel cost savings alone, even in states with the worst electricity-to-gas price ratio, Americans can still save hundreds of dollars a year by driving an electric vehicle. Only in eight states do we see less than $1,000 of average annual savings.

There are various factors that can make these numbers even higher, such as charging overnight when electricity prices are lowest. Make sure to ask your customers if they have a feasible way to charge from home to take advantage of additional savings.

Regional variations in EV cost efficiency

The financial benefits of owning an EV vary by state due to differences in electricity costs, state incentives, and other local factors. For instance, Colorado offers a substantial state incentive of up to $5,000 on top of the $7,500 federal tax credit, making EV ownership particularly attractive there.

In states like Washington and Oregon, high gas prices and low electricity rates make driving an EV a clear choice. In states with higher electricity rates, such as those in the Northeast, the savings on fuel costs are smaller over five years but still present. Additional benefits, like city programs offering free parking for EV and PHEV drivers, enhance the overall savings even further. Overtime, these EV perks add up!

Capitalizing on long-term EV savings

While consumers often focus on the high initial price tag of a car, as we can see, the long-term savings of an EV are substantial and should be taken into consideration during their decision-making process.

Transitioning to EVs requires both dealers and consumers to rethink total costs of owning a car, including fuel, maintenance, and incentives.

Lectrium is here to help dealers implement this shift with user-friendly tools for online shoppers.

To learn more about how you can highlight maximum savings for your customers on your EV inventory, check out our EV Savings Badge and book a demo with our team.