Why Dealerships Are Offering Incentives for Electric Cars and Hybrids

According to Market Watch, global sales of electric vehicles is expected to grow by 50 percent in 2021. For comparison, sales for traditional cars are expected to grow from 2 to 5 percent. The rapid expansion of the market has prompted many manufacturers to create competitive incentive packages.

That means that if you’re looking for an excellent deal on an electric vehicle, this is a fantastic time to make a purchase. Modern electric vehicles and hybrids are packed with features, and models are available at all price ranges — whether you’re looking for a car with advanced tech or you’re simply ready to stop spending your time pumping gas, you’ll be able to find a model that meets your needs.

Some of the current incentives for new hybrids and electric cars include:

• 0% APR Financing
• Low-Interest Leasing
• Up to $8,500 Cashback

Incentives vary by vehicle model, state, and dealership. Some options may not be available to all buyers, and some are only available online, so shoppers should compare their options carefully. You should also consider the overall value of each incentive — a large cashback offer might knock a considerable amount of money off of the price tag, but a long-term 0% APR financing incentive might provide a better overall deal.

2021 Tax Incentives for Electric Cars and Plug-In Hybrids

If you’re still on the fence, here’s more good news: By purchasing a new electric and plug-in hybrid car, you can get a tax credit of up to $7,500. The size of the tax credit varies depending on the vehicle’s battery capacity, per the U.S. Department of Energy. Many states and cities offer additional incentives, but drivers need to research these programs carefully.

When shopping for a new car, keep track of the model numbers for each vehicle you’re considering. Research the size of the federal tax credit (along with any state and local incentives) for the car, then factor that into the overall price.

By pairing competitive incentives with tax programs, you may be able to find an energy-efficient vehicle for much less than you’d pay for a car with a combustion engine — and that’s not including the money you’ll save at the pump. According to one estimate, an electric car saves about $632 per year on fuel when compared with a gas-powered car, and those savings will likely go up over time as the cost of gas increases.

Looking Online for Electric Cars and Hybrids

As we’ve discussed throughout this article, dealerships offer many of their best incentives online. No-interest financing, cashback programs, and other perks are often available for all new cars — not just 2021 models — so look at a variety of options when making your decision.

Keep detailed notes with information including:

• Financing Incentives
• Cashback Incentives
• Vehicle Mileage
• Vehicle Technology (Electric or Hybrid)
• Other Vehicle Features

Remember, many models don’t change much from year to year, and because the market is competitive, you may be able to find several similar vehicles from different brands. Keep your options open, particularly when you start your research; by understanding the market, you’ll be able to spot the best bargains.

Comparing Electric and Hybrid Vehicles

When shopping, remember that most manufacturers now offer electric vehicles and hybrids. You’ll want to look at several dealerships in your area, using online resources to find the best available incentives. Consider all of the costs of car ownership; if you’re comparing a brand-new 2021 model to a used electric vehicle, for example, you may need to factor in the eventual cost of battery replacement for the used car.

Keep detailed notes while researching. Remember, some dealerships may be willing to negotiate their prices for new vehicles, and if you’ve done plenty of research, you’ll have the information you need to negotiate effectively. With a little bit of work, you can take advantage of the unprecedented growth in the energy-efficient car market — and save big money at the pump over time.