Dustin Smith, CFP for Wealth Enhancement

Buying a new car: To EV or not to EV?

In 2025, an electric vehicle (EV) can be cheaper to own than a similar gas car if you drive more than 10–12k miles per year, can charge at home, and qualify for remaining tax credits before Sept. 30, 2025. Otherwise, a hybrid/PHEV may offer better economics.

Should you go EV in 2025?

The federal clean vehicle tax credit can save you up to $7,500 on your EV purchase, but it expires at the end of September 2025.

EVs are more expensive upfront, but generally have greater long-term cost savings compared to gasoline-powered vehicles.

When deciding whether an EV is the right choice, consider your driving habits and how charging requirements will fit into your lifestyle.

How the EV tax credit works in 2025

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