Transportation costs are at an all-time high. The average family spends over $12,000 on transportation each year making it the second highest expenditure behind housing, according to a recent report from the Institute for Transportation and Development Policy.
Electric vehicles (EVs) are part of the answer to reduce costs. The total cost of ownership for an electric car is actually much more affordable than the cost of a gas vehicle. Starting with the purchasing price, according to Kelley Blue Book, the average price for an EV in June 2024 was $56,371 while the average cost for a gas vehicle was $48,644. That’s a difference of $7,727, in favor of gas vehicles.
However, thanks to the Inflation Reduction Act, everyone may be eligible for up to $7,500 in tax credits toward an EV, essentially offsetting the cost difference entirely.
