
On Friday the 13th my spouse and I went to a Kia dealership to take supply of a Kia Niro. Taking one of many final 2019 Niros on the lot, we paid $32,900 for a automotive that lists for $41,000. Even higher, after we file our taxes subsequent spring, we’ll get a $7,500 credit score from Uncle Sam. So the after-tax value shall be simply $25,400.
The choices for electrical automobiles have gotten dramatically higher since we final went automotive buying in 2017. I wished to purchase an electrical automobile again then, too, however the pickings have been slim. Tesla’s Mannequin S and Mannequin X have been manner out of our funds. My spouse declared the Chevy Bolt and Prius’ plug-in hybrids to be too humorous trying. The Nissan Leaf was then rated at 107 miles of vary—far too little for street journeys.
We test-drove Ford’s C-MAX plug-in hybrid in 2017, however the plug-in characteristic appeared like an afterthought. The automotive had further batteries stacked within the rear cargo space, leaving little room for cargo. So we settled for a Subaru Impreza with an inside combustion engine. Price: $25,200.
Once we began searching for our second automotive this August, the choices have been rather a lot higher. There have been sufficient pure battery-electric automobiles available on the market that we did not even take into account plug-in hybrids. My spouse (the first driver) test-drove an electrical Mini, a BMW i3, a Nissan Leaf, a Hyundai Kona, and a Kia Niro.
All of those automobiles have been out there for nicely underneath $40,000—and underneath $30,000 when you issue within the tax credit score.
A number of elements in the end bought her on the Kia. It had extra inside area and longer vary than the Mini and the BMW. These weren’t must-have options since we may nonetheless use the Impreza for street journeys, however they helped. Extra importantly, she discovered the Niro to have essentially the most comfy and satisfying drive of any of the vehicles she tried. And she or he was impressed by the elegant inside.
It is a good time to purchase an electrical automobile

In 2017, shopping for a battery-electric automotive meant making sacrifices. There weren’t many choices available on the market, and shoppers confronted selections between quick vary and a excessive sticker value.
At present there are various extra choices available on the market, they usually supply dramatically higher worth for the cash. You’ll find electrical automobiles to fulfill a wider vary of buyer wants and at a wider vary of value factors. Electrical vehicles are approaching value parity with standard gas-guzzlers. When you issue within the $7,500 tax credit score, some have arguably reached it. Our Kia Niro EV would not fairly have the vary of our Subaru Impreza, nevertheless it’s a nicer automotive in each different respect. And the online value was virtually precisely the identical.
Ars Technica’s Kyle Orland additionally bought an electrical automobile lately. He purchased a Nissan Leaf final yr. The Leaf has been available on the market for nearly a decade, and it has boasted steadily enhancing vary. At present they’re rated for between 150 and 220 miles of vary.
“The one factor that gave us pause was the vary,” Orland says. “However as soon as we truly checked out how we drive, there have been perhaps 5 journeys a yr after we have been driving greater than even 150 miles.” He and his spouse have been planning to maintain their previous automotive—a gas-powered Toyota Camry—so they may take that on street journeys.
He thought-about the Chevy Bolt and the BMW i3. However Orland dismissed the Bolt as a result of it received poor critiques, and he wasn’t satisfied the BMW was well worth the larger price ticket.
“We have been searching for a comparatively low cost automotive,” Orland stated. “We’re not large automotive folks.”
Orland says he was pleasantly shocked on the peppiness of the Leaf. His driving expertise belied the stereotype that inexpensive electrical vehicles have been glorified golf carts. “Once I return to the Camry now, the dealing with and the acceleration simply appears type of sluggish,” he says.
One other Ars author, Jennifer Ouellette, purchased a used 2017 BMW i3 final yr. She paid $35,000 for the electrical automotive, which had been a part of a company fleet and solely had 1,700 miles on it. The $7,500 tax credit score is barely out there to patrons of recent vehicles.
Like Orland, Ouellette was initially involved in regards to the quick vary of the automotive. However she realized that she and her husband would largely use it for commuting and operating errands. Like Orland, additionally they had a second automotive they may take for longer journeys.
“It is small and sporty, with nice visibility and terrific inside cabin design,” she advised me. “It handles very well, with lively braking, and has strong acceleration.”
Extra choices on the excessive finish, too

Ars Technica’s Eric Bangeman fell in love with the Jaguar I-PACE after reviewing it for Ars final yr. Whereas Orland and I largely wished vehicles that would get us from level A to level B at an inexpensive value, Bangeman was extra demanding.
“I wished one thing that was enjoyable to drive as a result of that is an necessary a part of proudly owning a automotive for me,” he stated. He was prepared to pay a premium for a terrific expertise. He in the end paid $67,000 for the automobile with assist from a $3,000 trade-in credit score for his 2009 Toyota Prius. He received a $7,500 credit score on his taxes the subsequent yr.
Bangeman had check pushed a buddy’s Tesla Mannequin S, however he stated he loved driving the Jaguar extra. “The I-Tempo was the entire bundle on appears to be like, vary, efficiency, and inside,” he advised me. In his opinion, the inside of the Mannequin S was “not as refined.”
The I-PACE’s comparatively lengthy vary—round 230 miles—was additionally a consideration. He commonly makes weekend journeys of about 200 miles. So whereas he discovered rather a lot to love in regards to the Audi e-tron, its 200-mile vary wasn’t fairly sufficient for his wants.
Choices for higher-end electrical automobiles have been steadily increasing. Audi has been increasing the electrical e-tron line. For patrons with cash to burn, there’s the Porsche Taycan.
And there are much more battery-electric automobiles coming available on the market within the US subsequent yr:
- Ford will quickly start deliveries on its Mach-E Mustang and is engaged on an electrical F-150 pickup.
- Electrical startup Rivian is aiming to ship in 2021 (Tesla’s Cybertruck in all probability will not arrive earlier than 2022).
- Volvo’s XC-40 SUV is anticipated to be launched within the coming months.
- Mercedes-Benz has a number of fashions on the best way in 2021.
- Volkswagen’s ID.four crossover is scheduled to return to the US market subsequent yr.
- Startup Lucid is aiming to convey the Lucid Air to market in 2021.
All these choices will allow extra clients to seek out one thing that matches their wants and their budgets.
That $7,500 tax credit score could not final endlessly

The federal authorities affords a $7,500 tax credit score for the primary 200,000 automobiles a producer sells. After that threshold is reached, the subsidy declines to zero over a yr.
My spouse and I did not significantly take into account Tesla’s Mannequin Three or the Chevy Bolt as a result of they’ve each already hit the 200,000-vehicle restrict and had their tax credit phased out. So whereas they’d comparable sticker costs to our different choices, the online value to us would have been a lot larger.
If the subsequent couple of years see a increase in electrical automobile gross sales, as many automotive firms are hoping, we’ll begin to see different firms hitting the identical restrict. Official figures are onerous to seek out, however one unofficial tally from a yr in the past discovered Nissan, Ford, and Toyota to be the top-selling BEV makers that have been nonetheless credit-eligible.
Nissan was within the lead, with about 50,000 US automobile gross sales to go earlier than hitting 200,000. US gross sales of the Nissan Leaf have been anemic in 2020, so Nissan clients could benefit from the credit score for an additional yr or two. However solely Nissan and the IRS know for positive.
The identical is true of Ford and Toyota. Each had bought greater than 100,000 automobiles by the tip of 2019. They’re unlikely to achieve the 200,000 restrict in 2020 or 2021 however would possibly accomplish that quickly after that.
The underside line is that the subsequent yr or two is more likely to be a golden age for getting electrical automobiles. Customers may have lots of good choices, they usually’ll additionally profit from the tax credit score. There’ll possible be much more electrical vehicles available on the market in 2022 and 2023, however by then the preferred automotive fashions might not be eligible for assist from Uncle Sam.
Then again, it is attainable that President-elect Joe Biden will lengthen the credit score. In response to his marketing campaign web site, Biden needs to “restore the total electrical automobile tax credit score to incentivize the acquisition of those automobiles.” It isn’t totally clear what which means, however it might imply making Tesla and GM automobiles eligible for the credit score once more and stopping a phase-out for different carmakers. In fact, if Republicans retain management of the Senate, Biden would possible need assistance from Senate Majority Chief Mitch McConnell to place that into apply, so it is from a positive factor.
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