How owning an electric vehicle can save money over the long haul

Electric vehicles like the Volkswagen ID.4 offer a lot of benefits to their owners, such as zero tailpipe-emission driving and home charging. But there’s often been questions about the cost of EVs, as battery technology remains slightly more expensive than combustion engines.

The truth is that while some of those differences exist, the cost of owning an EV has fallen in recent years. With Volkswagen building a global platform to support dozens of EV models worldwide, the ID.4 can offer all the benefits of a compact SUV at a price that’s within reach of a typical new-car buyer. And for many people in the market for a new vehicle, an EV offers several ways to potentially reduce costs while helping reduce carbon emissions.

“We want the ID.4 to be accessible to the average American family, with a package that has no compromises,” said Duncan Movassaghi, executive vice president of sales and marketing for Volkswagen of America. “We think this really works financially for our customers.”

Here are three ways that EV owners typically reduce costs:

Purchasing

Under current law, purchasers of certain electric vehicles may qualify for a federal income tax credit of up to $7,500 (See important limitations below ).1

Subject to various limitations and qualifying criteria, state and local governments and other entities may also provide tax incentives or other benefits for certain EV buyers and lessees. 2 There are several websites that provide information on potential incentives in your area. If available, these incentives could reduce the purchase or lease cost of an EV.

Recharging

Thanks to using electricity to get around, powering an EV can cost significantly less than filling up the average new gasoline-powered vehicle. For the ID.4, charging at home could cost on average about $58 per month less than driving a new vehicle the same distance. Over five years, that could add up to over $3,500 in fuel savings. 3

Beyond that, the Volkswagen ID.4 comes with three years of unlimited public DC fast charging on the Electrify America network at no additional cost, which offers 487 stations with more than 2,000 fast chargers nationwide, and more coming online soon. 4

Maintaining

With fewer moving parts and fewer routine needs like oil changes, EVs generally can cost less to maintain over several years than combustion vehicles. The Volkswagen ID.4 will come with two years or 20,000 miles (whichever occurs first)5 of scheduled maintenance services through Volkswagen’s Carefree Maintenance program to take care of routine items; beyond that, the ID.4 will have a four-year or 50,000-miles (whichever occurs first) bumper-to-bumper New Vehicle Limited Warranty6 and an eight-year/100,000-mile (whichever occurs first) limited warranty on the battery pack.7

All of these cost estimates above will vary based on your unique situation. It may take a bit of homework, but depending on your particular situation the Volkswagen ID.4 might help you save some money and embrace electric driving at the same time.