EV prices are falling, there is a strong used EV market, more incentives and rebates are available than ever before, and, with better overall affordability, there is an EV for everyone. That is why recent data conducted by Probolsky Research, in partnership with Veloz, reveals that nearly 80% of current EV drivers in California plan to purchase another EV for their next car, refuting a survey in the headlines that said most EV owners would choose to go back to a gas car. Another national survey found that almost 90% of EV owners said they are “likely” or “very likely” to purchase an EV as their next car.
Consumer interest in EVs comes as no surprise to us at Veloz — not only are EVs becoming more and more affordable, but they are also more fun to drive. Russ Mitchell at the Los Angeles Times writes, “I’ve learned to love the quiet ride of an EV, the smooth operation, the convenience of charging at home, the freedom from constant maintenance, the lower cost of electricity compared to gasoline (at least for now) and the instant torque off the line that a gasoline engine cannot match.”
The Probolsky Research also found that nearly 40% of gas-powered car owners in California would consider an EV for their next purchase. That number rises to 47% for individuals aged 18-29 and 46% for those aged 30-39. “To put this into perspective, 40% of market share would be equivalent to every pick-up truck and every sedan sold in the U.S. in one year, combined,” said Adam Problonsky, President of Probolsky Research. “This surge in interest in EVs means that, as a class of vehicle, they could, if priced right and the charging infrastructure is built out, dominate the market quickly.”
These next-generation EV owners can look forward to more options and greater affordability. In March 2024, the average price paid for all new vehicles fell to the lowest point in nearly two years, with new EV prices decreasing by 9% compared to the first quarter of last year. Even as automakers right-size production to meet consumer demand over the next few years, the average price is expected to drop even more as manufacturers cut production costs by reaching greater economies of scale and improved technologies. This is most evident in the cost of batteries, the most costly component of an EV, which has come down 90% in the last 15 years.
“Customers tell us affordability is a key piece of EV consideration, and GM is bringing to market vehicles at nearly every price point and for every purpose,” said Mike Maten, GM Director of EV Policy. “The affordable Chevrolet Equinox EV will help lead this charge with style and function. We also know incentives are an important accelerator for EV adoption, and I’m glad Veloz’s new tool will support and build customer awareness.”
Vehicle cost savings add up for consumers — and then combining local, state, and national incentives can significantly lower the cost of buying an EV even more. Veloz just made it easier for people to find these savings in our new, nationally expanded incentive search tool on ElectricForAll.org. It is a national ZIP code-based incentive finder that will show interested EV owners all the savings available in 49 of 50 states in metro areas with populations of 50,000 or more plus the Biden Administration’s Justice40 communities. Montana is the only state without a local incentive, but consumers can still access the Federal tax rebate.
When you combine EV incentives with the savings of lower maintenance and fuel costs, EV owners end up spending less money over the life of the car — this is known as the total cost of ownership. The total cost of ownership is the sum of the purchase cost of the vehicle and the cost of maintenance and the cost of fuel over the life of the car. When comparing the total cost of ownership for five of the most popular gas vehicle models with its EV equivalent, research shows that owning an EV would always be cheaper, ranging from $7,000 to $11,000 in savings over the life of the vehicle. To make EV’s even more affordable and appealing, Ford Motor Company just released the “Ford Power Promise” program that includes a free home charging installation and other benefits.
Data shows that every EV model in every state is cheaper to fill than a gas-powered car. That’s because EVs are almost 3 to 5 times more efficient than gas vehicles. And, without head gaskets to replace, oil to change or smog checks to pay for, EVs cost half as much to maintain and repair as gas cars. You can determine the total cost of ownership for your next EV purchase using this calculator from the U.S. Department of Energy.
Veloz is leveraging its leadership, 40+ members, communications channels, connections and convening power to overcome EV adoption challenges, help consumers understand the benefits of choosing an EV for their next purchase, and speed up Veloz’s Electric For All vision. Together we can support access to incentives and continue to drive down cost of EVs.
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