Earth Day has been linked to campaigns for eco-conscious driving and better gas mileage for so many years now that the annual event almost automatically makes people think about hybrid and electric vehicles. Yet these days, driving an alternative fuel vehicle isn’t only about saving gas. Drivers are coming to appreciate the new-tech vehicles—not only for their fuel efficiency—but for the get-up-and-go and their quiet operation.
Plug-in hybrids with both gas engines and rechargeable electric batteries give high-mileage drivers the best of both worlds. The gas engine keeps you rolling on longer drives with none of the battery range anxieties that plague electric vehicle drivers.
All-electric plug-ins are coming into their own among drivers who don’t have to worry about battery range. Electric vehicles (EVs) are easy to recharge right at home, and their quiet, zippy performance creates a fun driving experience. No combustion engine means a lower maintenance burden for things like changing filters, oil, and spark plugs.
In fact, EVs are stealing the limelight right now in the wake of the buzz heralding the Tesla Model 3 and the Chevrolet Bolt, both priced under $40,000. The big news on these two EVs is their increased range. Both cars will travel 200 miles on a charge, giving drivers much more freedom than previous EV cars. Look for competitors to begin pushing harder to catch up.
Federal tax credits
Buying a new electric car or hybrid qualifies you for some respectable federal income tax credits. The incentive program provides $7,500 for electric vehicles and up to $5,000 for hybrids. The incentives apply only to new cars—an important point if you’re negotiating a price on a used hybrid or EV.
Since the bonus comes in the form of a tax credit, rather than a cash payment or discount at the time of purchase, the credit will never be worth more than what you owe on your income taxes. If you only owe $4,000 on your federal taxes, for example, a $7,500 incentive will only be worth $4,000 to you.
Even with Tesla and Chevy launching EVs under $40K, electric and hybrid vehicles can be pricier than comparable gas-powered cars. PenFed can get you into an eco-friendly EV or hybrid in time for Earth Day with a range of auto loans to meet your needs.
Additionally, our auto loans for new vehicles provide financing up to 110% of the purchase price, which can help reduce your out-of-pocket expenses on items such as your vehicles taxes, tags, and licensing fees. You can even finance your GAP¹ coverage (this product is optional) as long the total amount financed doesn’t exceed 110% of the MSRP for new cars and NADA retail value for used cars.
Rates start as low as 1.49% APR* for new vehicles and as low as 1.99% APR* for used vehicles. Visit PenFed’s Auto Loan Overview site—then apply online.