How to Choose and Buy an Electric Vehicle

Electric vehicles, or EVs, have increased in popularity to the point that you pass them on the road almost every time you go for a drive. There are a lot of models to choose from (and more debut each year), so it's easier than ever for buyers to find an EV that they like. However, first-time buyers looking to escape the tyranny of gas prices and go electric often have questions they want answered before they start shopping.

Unlike gasoline-powered cars and gas-electric hybrids, EVs require you to think about range and charging. They also have some unique terminology that may be unfamiliar to new buyers, almost like their own little dialect of automotive language. These issues can apply to dealers as well, so it's important to select a dealer who understands EVs and related incentives. You can also choose a carmaker that skips dealers altogether and sells online.

In the following sections, we'll take an in-depth look at the factors you should consider if you're looking to buy or lease a new electric car.

How Do You Choose the Right Electric Car?

In some ways, buying an electric car is no different than any other vehicle. For example, you'll still want to choose a model that fits your needs, budget and lifestyle. You need to seriously consider how you use your vehicle, where you're going to charge it and which incentives are available.

The first step is to take a close look at what you need from a car.

Where Do You Drive, What Do You Carry?

While today's crop of electric cars performs admirably, there are some tasks they're not quite ready for. If you regularly travel long distances in areas with few EV chargers or don't have a reliable place to charge your EV, you might want to wait a couple of years until there are better options.

You can easily find EVs that can carry five people today, but only a couple can carry up to seven. Need more seats? There are only a handful of options available, and they’re not cheap, but there will be more in the coming years, and prices may eventually level off.

With those exceptions, there's probably an EV that's right for you in today's market. Offerings vary from affordable compact hatchbacks with decent range and peppy performance to electric cars, crossovers, SUVs and even pickup trucks with breathtaking performance and price tags to match.

Where Will You Charge?

Suppose you're living in a home with a dedicated space where an electric vehicle charging station can be installed or your employer provides workplace charging for employees. In that case, the decision to buy an electric car is easy. Like most EV drivers, you'll charge at home or the office, and your vehicle will be ready to go when you wake up in the morning or when you leave work.

On the other hand, if you park on the street or your apartment parking area doesn't have chargers, the decision to buy an electric vehicle becomes more complex. Getting an EV without having a reliable charging strategy is a recipe for disappointment. This is especially true if there are few reliable public charging solutions in your area.

Though most new EVs have the ability to charge from public DC fast-charging stations, using them as your primary charging source can get quite expensive. Not only can some DC fast chargers be nearly as costly as putting gas in a car, using them too often can reduce the lifespan of your EV's battery pack.

If you must rely on public charging, there are Level 2 stations all over the country, and many are free. Charging at a public Level 2 charging station is comparable to charging at home at a 240-volt outlet (we explain the various charging levels in more detail later). However, you’ll need to make sure ahead of time that such a station exists near you and that it's reliable and readily available. You’ll also need to carve out a chunk of time in your schedule to use it on a regular basis.

Do You Qualify for Electric Vehicle Incentives?

This is an important point that every EV shopper needs to think about, as there are federal, state, local and utility credits available to electric car buyers. Some cities and states offer more incentives than others, and you'll need to do your research to find out if you qualify for any other them. You don't want to pay more than you need to for your vehicle.

The big incentive is the revamped Federal Electric Car Tax Credit, which comes as part of the Inflation Reduction Act. It can provide a tax credit of up to $7,500 if you purchase a new EV and up to $4,000 if you purchase a used EV from a dealer. These credits have very specific rules and limitations, so make sure you do your homework and talk to an expert before moving forward.

State, local and utility incentives vary dramatically depending on where you live. Some give you a break at the time of purchase, while others make you wait until you file your taxes. Some are available on leased electric cars, and some apply to the purchase of used EVs.

Knowing what incentives you qualify to receive can help you set the right car-buying budget.

Range

Once you've decided that an electric car is right for you and you have an idea of your needs and budget, it's time to start shopping.

At or near the top of your list of considerations should be the range of the EV. When thinking about EV range, it's important to consider how far you reasonably need to drive between charging. And you can’t simply rely on the EPA’s estimates, since there are many factors that can reduce an EV’s range, such as cold weather. Underestimating your required range will leave you with constant range anxiety, thinking about how soon you need to find a charger.

Buying a car with too much range can be costly. Unlike a gas tank, which is lighter as it empties, a battery pack remains the same weight no matter whether it's empty or full. Why carry the extra weight of a high-capacity battery if you don't need it?

Driving range varies widely among today’s electric vehicles. At the lower end, you'll find a few cars and SUVs with ranges of just over 100 miles. That's plenty for most daily commutes, but if you regularly take long drives or stress out anytime your fuel gauge gets below half, you'll want something with a longer range between charging sessions.

A few longer-range models can travel over 350 miles on a single charge, though those vehicles come with steep price tags.

Most EVs on the road today can travel around 250 miles on a single charge. You'll find everything from subcompact SUVs to high-performance sedans and crossovers with single-charge ranges that are in that ballpark.

The official range of electric vehicles must be certified by the EPA before a car can go on sale. However, most EV makers will announce an estimated range target when they debut the vehicle. Note that a manufacturer's estimated range can vary substantially from the final EPA numbers. Sometimes an automaker will publish an estimated range based on the European testing cycle. That measurement is not equivalent to a car's expected EPA range due to substantial differences in how the vehicles are tested.

Charging

There are three main ways to charge an EV.

Level 1

Level 1 charging is basically plugging your electric vehicle into a typical household outlet. It will get the job of charging done, but very slowly. If you're just going to use your EV for a few miles of driving each day, you can get by with Level 1 charging. Much more use than that, though, and you'll want to charge your vehicle using a faster type of charging.

Level 2

Level 2 electric vehicle charging uses a 240-volt connection to charge significantly faster than a Level 1 plug. Level 2 charging stations can be installed in your home, workplace or public areas. A Level 2 charging station can recharge a typical EV overnight or during a workday. Different EVs can charge at varying rates, however, so you want to match any charging station you buy with your electric car's capabilities.

DC Fast Charging

If you're planning to use your electric car for any long-distance excursions, you'll want it to have the ability to charge from DC fast chargers. Found at public charging stations, DC fast chargers can add dozens, if not hundreds, of miles of range to your EV in 30 minutes.
DC fast charging is available at different speeds, and not every vehicle can take advantage of the fastest charging speeds. When you attach your car to a fast charger, the car and charging station work together to achieve the fastest charging speed possible.

There are currently three DC fast charging standards in the U.S. CHAdeMO was an early standard, and it is only found on one EV sold today. Buy a used car, though, and it might have a CHAdeMO connector. SAE Combo is quickly becoming the most popular type of DC fast-charging plug, with the vast majority of new cars using simple-to-connect SAE Combo plugs. The final standard is the Tesla Supercharger Network, which is only compatible with Tesla vehicles, though Tesla is in the process of opening its network up to all EVs.

Price, Incentives and Cost of Ownership

Few buyers just head off to purchase a new car without considering the price, and it's no different with EVs. It's also worth noting that, at least for now, electric vehicles tend to cost a bit more than their gas-only counterparts, with prices starting around $26,000 and climbing to well over $100,000 for some high-end luxury models.

That's not the whole story, however. The price of most EVs can be reduced by federal, state, local and utility incentives. As mentioned earlier, the Federal Electric Car Tax Credit can return as much as $7,500 to the wallets of electric vehicle buyers. State incentives and tax credits vary dramatically, depending on where you live.

In some states, driving an electric vehicle comes with penalties, such as higher registration costs. In others, there are additional fringe benefits, such as carpool lane access, that aren't offered to cars that use gasoline as their fuel.

Some lenders, especially credit unions, offer special auto loan rates for buyers of green vehicles, including electric cars.

Arguably most important, while EVs cost more than gas-powered cars, they’re typically cheaper to own. If you charge at home, the cost of the electricity will be significantly less than the cost of gas. In addition, electric cars don’t have many fluids to change, and they don’t require nearly as much scheduled maintenance as their gas-powered cousins.

Performance

Cars powered by electricity perform differently than those powered by gasoline.

While they handle like traditional vehicles, they accelerate differently because of their electric motors. Unlike vehicles powered by gasoline, which take a bit of time to build to maximum power and torque, electric motors reach their peak power the moment you press the accelerator pedal. That gives electric cars lively performance from a stop, with some models able to accelerate from zero to 60 mph in three seconds or less.

Of course, extreme performance comes at a price, and models with the quickest acceleration are the most expensive EVs in the marketplace. Even the most affordable EVs have ample performance for urban errands, though.

Would a Plug-In Hybrid or Traditional Hybrid Be a Better Choice?

Many limitations of currently available electric vehicles can be surmounted by purchasing a plug-in hybrid or traditional hybrid vehicle. Both use a blend of electric motors and gasoline engines to provide vastly improved fuel economy, compared to gas-only vehicles.

The difference between a traditional hybrid and a plug-in hybrid vehicle (or PHEV) is that while a conventional hybrid uses its gasoline engine to charge its battery, you can charge a PHEV from an external source of electricity, such as a Level 2 charging station. A PHEV can typically travel about 20 to 40 miles on electricity alone, after which its gas engine automatically kicks in, and it functions like a conventional hybrid.

Because a hybrid or PHEV can operate on gasoline alone, there's less range anxiety, and you don't have to plan charging stops on a long journey. You can just refuel at any gas station. However, both hybrids and PHEVs emit harmful tailpipe emissions just like gas cars. Only fully electric vehicles are emissions-free.

Buying an Electric Car

Like most cars, you can buy or lease a new electric car from a dealership or as a used vehicle from a new car dealer, used car dealer or private party. Increasingly, you can also buy new EVs directly from the automaker or entirely online, with home delivery.

From a Dealership

Buying a car that's electric from a dealership should be just like purchasing a gas-powered vehicle, though that's not always the case. The level of expertise in selling EVs and educating buyers about an EV's pros and cons varies greatly by the dealer.

An excellent way to learn about the best dealers to buy an EV from is by exploring online owner forums for vehicles you're considering. Consumers can be vocal about which retailers truly understand EVs and which do not.

Electric vehicles can be financed and insured like traditional cars, with some lenders giving preferred rates to buyers of alternative-fuel or “green” vehicles.

From an Automaker

Some electric vehicle makers don't have dealerships in the traditional sense. Instead, they might have showrooms, where you can look at vehicles and do test drives, but you can't complete the purchase. Instead, you complete the sales or lease process online.

Because of strict dealer franchise laws, it's more difficult to purchase a vehicle without a dealership network in some states.

Another route that a few automakers are taking is to run much of the purchase process through their own website, then have the final steps performed by a local dealership.

Should I Buy or Lease an Electric Car?

While you can purchase or lease a car that's electric, just like a traditional gas car, the decision can be more complicated with an EV.

Some experts suggest only leasing electric cars. Because technology is advancing at such a rapid clip, you simply don't know if something much better will come along in a few years, reducing the value of a vehicle purchased today to nothing. There's still some uncertainty about the lifespan of electric vehicle batteries, or an EV's degradation in range over time. Better to lease a car, they say, and have the option to jump to a new car in a few years.

On the other hand, when you lease an electric car, you may lose the ability to take advantage of some tax credits and other purchase incentives. Instead of you receiving the credits, they're taken by the leasing company, which can then determine whether, and by how much, the incentive benefits the lessee.

More Electric Car Shopping Tools From U.S. News & World Report

Any car purchase or lease starts with finding a model that meets your needs, lifestyle and budget. Our new car rankings and reviews are crafted to answer the questions shoppers tell us are critical to making smart buying and leasing decisions.

After you've found the right car, it's time to find the right deal. Our new car purchase deals page showcases the best financing and cash back offers available in the marketplace. Our lease deals page shows incentives with low monthly payments and little cash due at signing.

An easy way to save some cash on a new car purchase or lease is taking advantage of the U.S. News Best Price Program. It connects shoppers with local dealers, offering significant savings with pre-negotiated prices, home delivery and online sales options.

A car-buying journey doesn't end until you have your new wheels protected by the right insurance. Our guide to auto insurance shows you the coverage you need, money-saving car insurance discounts and the cheapest auto insurance in your state.