3 Reasons You Might Regret Buying a New Electric Vehicle

A driver charges their electric car at an outside charging port.

Electric vehicles (EVs) are becoming more popular, and dropping prices on new models are a big part of that. The average price of a new EV as of April 2024 was just $55,242, according to Kelley Blue Book. That's just over $10,000 more than the average gas-powered vehicle.

That said, it's still a lot of money, and it might not be the best investment for everyone, at least right now. If any of the following three conditions apply to you, a new EV might not be the right vehicle for you.

1. You don't have a lot of money to spend on a vehicle

New EVs could still be out of reach for a lot of low- to middle-income car buyers, even with the federal tax credits that can shave up to $7,500 off the sale price. The long-term savings potential is great, but you won't be able to realize it if you can't stomach the sticker price.

Just because you can't afford a new car doesn't mean you can't afford an EV, though. The used EV market is growing and buying one of these could lessen your carbon footprint without putting as big of a strain on your wallet. Some of these models are also eligible for used EV tax credits of up to $4,000. Again, you can take this directly off your sale price if you're purchasing from a dealership.

Do some research to find out what's in your area. You could also check online, on car sites like Carvana. Compare the used EVs available to new models to see how their features, ranges, and prices stack up.

2. You already have high car insurance premiums

Several factors influence car insurance premiums, including the driver's accident history and the vehicle make and model. EVs are usually more expensive than gas-powered vehicles to insure because they cost more to start with and have more expensive components. If the car is involved in a crash, it takes more money and technicians who are familiar with EV technology to fix them. That drives up the bill the insurer pays to fix it and it passes that cost onto drivers in the form of higher premiums.

Drivers who can't find affordable auto insurance to begin with due to a history of accidents, speeding tickets, or DUIs probably don't want to make their situation worse by trying to insure a more expensive car right now. They may want to wait a few years until some of the negative marks fall off their driving record and their rates come back down.

Those determined to buy an EV regardless of increased insurance costs should shop around and compare rates from three to five top car insurance providers before purchasing a policy. They may want to specifically target companies that offer discounts to drivers of EVs and hybrids -- though it's important to note that more discounts may not always translate to lower premiums.

3. You live somewhere that's not EV-friendly

You may have seen the news stories last winter about people waiting hours in line at EV charging stations because cold snaps were sapping their batteries faster than usual. Or you may have heard about people struggling to find charging stations or driving to one only to find it was broken.

Ideally, these issues will improve in time, but right now they're real problems that prospective EV owners have to contend with. Before buying, consider the EV charging infrastructure in your area and how you plan to use your vehicle. Short trips around your city might be fine, but those who put in a lot of hours on the road could run into some of these challenges.

If you're worried about running into problems with charging your EV, a hybrid might be a better option for you. You'll still be lowering your carbon footprint, but you'll also have the option to fill up your gas tank and go anywhere when you need to.

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