Skip nav to main content. Contact & Locations English Mobile App Login Search Menu Blog Home / Loans All about EVs Posted by Terry Inskip on August 4, 2021 Electric vehicles (or EVs) will save you money and help the planet. When it comes to choosing a new car, aside from the brand, model and type you want, we should also take into consideration the type of engine. Doing that won’t only help the environment; your choice can also save you a lot of money. There are three types of green cars: electric (EV), hybrid (HEV) and plug-in hybrids (PHEV). Here’s everything you need to know about the different types of electric vehicles so that you can choose the one that’s best for you. Electric Vehicles (EVs) These cars don’t use any type of fossil fuel. Their energy comes from a battery that we charge periodically; it also gets charged when the engine is running, during certain motions, and with braking. From the environmental point of view, this is the most planet-friendly type of engine because the only pollution it generates is based on the source of energy that charges it. For example, if you have solar electric, the vehicle’s use emits minimal emissions; alternatively, if your electricity’s source is a fossil fuel or nuclear, its use has a larger CO2 load. Regardless of that, any EV charging option will always mean much lower emissions than the standard combustion engine car. Hybrid cars (HEVs) These cars have combustion engines that use fossil fuel; to save energy they also have an electric battery that charges when running the motor and braking. That energy gets stored, and depending on the car, reused to provide the energy to various engine and vehicle elements. They emit less harmful emissions and save on fuel. Pluggable Hybrid Vehicles (PHEVs) These vehicles have two engines, one electric and the other a combustion one. Normally, they run on the electric battery until it becomes depleted. Then, they switch the combustion engine on. You fuel them both with gasoline and charging them from the grid. PHEVs have lower CO2 emissions, although more than the other two types of electric vehicles. More expensive One of the greatest qualms that consumers have when it comes to buying an EV is the price. Consumer Reports, the US independent agency, states that EVs are between 10% and 40% more expensive than their comparable counterparts. There are several reasons for that: The current infrastructure and our very own lifestyles are already built to make using normal gasoline cars. EVs and PHEVs require regular battery charging, so they need access to a charging station (the average cost of installation is $750*). And, Part of the price of EVs covers the cost of years of research and development, because they are much newer. Still, they save you more money All electric vehicles will save you money; furthermore, the savings is much higher than the price difference from a regular car. According to a 2020 report from Consumer Reports, even with the added price tag, consumers using EVs still save. Here’s why: Fuel costs: they estimate that EVs save $4,700 over the life span of the car (set at 7 years). Repairs: battery-run engines require a lot fewer repairs than combustion engines. Consumer Reports indicates that the average savings over a car’s lifetime (be it electric or hybrid) is between $6,000 and $10,000. The pure electric cars will save more because they need to fluid replacement (brakes, oils). Better depreciation: cars with electric functions hold their value much longer. That means that when you decide to sell yours, you will get more than from a gas-fueled counterpart. Purchasing used value: according to a different report from the same US agency, the purchase of a 3-year old electric or hybrid will save you 66% off the original MSRP from a new one. You save on taxes! Nowadays, wherever you buy an EV worldwide, you’re extremely like to get some kind of tax break. In the US, depending on the type of engine, the tax break is between $2,500 and $7,500. Not only that, many states offer tax credits and other driver benefits -such as privileged parking and highway driving lanes. You will save at OAS FCU, too! As part of our commitment to the UN’s Sustainable Development Goals, we sponsor the purchase of any EV by offering a special rate discount. If you add this to our already extremely competitive rates and super simple and quick application process… well, what are you waiting for? Benefit comparison between combustion engine and electric vehicles Fuel savings* Maintenance and repairs* Other costs (vehicle charging station) Tax credits (US)** Lifetime estimated savings* Regular combustion engine car $0 $0 Electric car (EV) $4,700 $10,000 $750 one-time expense $7,500 federal, plus any state credits $21,450+ Hybrid car (HEV) $4,700 $6,000 $0 $2,500 federal, plus any state credits $13,200+ Pluggable hybrid car (PHEV) $4,700 $6,000 $750 one-time expense $2,500+ federal, plus any state tax credits $12,450+ Disclosures Would you like to know when we have a new blog post for you? Contact About Routing Number Accessibility Privacy Notice Equal Housing Lender NMLS #417490 © 2018 OAS Federal Credit Union All Rights Reserved Federally Insured up to $250,000 by NCUA © 2021 OAS Federal Credit Union All Rights Reserved Follow on Facebook Follow us on Twitter Accessibility