How to Calculate the Costs and Savings of Electric Cars

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Going green is important to many people and saving green is essential. The car you drive makes an impact on both. So, is it wise to purchase an electric or hybrid vehicle to save money on gas? The answer depends and varies from person to person. One considering buying an electric or hybrid car must be honest about their priorities, whether they are more based on financial or environmental factors.

As cars such as the Chevrolet Volt and the Nissan Leaf take electric cars more into the mainstream, the value proposition of electric cars must be considered. This means one must think about the economic rationale for owning an electric car versus a more conventionally powered car by comparing the financial costs of electric cars versus that of hybrids or gas or diesel cars.

Consider the following:
• Driving habits: the amount of miles driven annually for work, pleasure and travel, as well as how much city versus highway driving is done

• Fuel prices: consider gas, diesel and electricity for comparison

• Car miles per gallon, both city and highway • Battery range and battery capacity

• Payment options: Whether you purchase outright, leave or purchase with financing, these much be considered and tax credits should be factored in

Annual costs, costs over time and the amount of years it takes to break even should all considered when one is evaluating the possible purchase of an electric or hybrid over a conventionally powered car. It is also important to factor in one’s personalized economic analysis, in addition to other factors – such as the externalities of sourcing oil or emissions.

About the Author: This is a guest post from Jon Lal, founder of coupons & cash back website BeFrugal.com and couponing & savings expert. BeFrugal.com offers cash back for online shopping at 3,000+ online stores with a current average rate of 7% and free online financial tools like the free Electric Car Calculator.