Switching to electric because of high gas prices? 3 ways to make your EV more affordable

If you’re one of the millions of Americans who rely on your car, whether it’s every day or for the occasional road trip, you’re probably feeling the pain of increasing gas prices.

As of July 23, the national average gas price was $4.09. A week ago, it was $0.15 cheaper and, one year ago, it was nearly $1 lower. What’s more, crude oil — the main ingredient in gasoline — rose to its highest levels in nearly two months. With those factors in mind, folks may be considering investing in an electric vehicle (EV).

To be sure, rising gas prices aren’t prompting millions of Americans to get a new car. Less than 2% of the 277.1 million cars and trucks on the road last year were electric, according to an Experian Automotive report. But that’s slightly higher than the 1.4% in 2024 and 1.15% in 2023.

Electric vehicles are still growing in the U.S., and with electricity prices being significantly more stable than fuel, electric cars could save you money at the pump. Using the current national average gas price and electricity price, driving 100 miles in a typical gas car that gets 25 miles per gallon now costs more than $16 on average, compared to $5.94 for an EV.

With lower fuel costs being just one of the potential perks of going electric, CNBC Select rounds up some of the most important resources for those considering an electric vehicle.

Used electric cars tend to have higher purchase prices than gas counterparts — about $3,382 more, according to data from Cox Automotive, an automotive technology company. And the difference between a new EV and a gas car is $6,680, not including any incentives. As a result, that could mean taking on a larger loan to afford one.

However, some auto loans have lower rates for electric vehicles than for standard gas cars. These are primarily offered by credit unions, and to access them, you’ll need to join as a member if you aren’t one already.

There is one alternative that’s not from a credit union, though. Tenet is an EV lender that offers loans for new and used cars, and its rates can be lower than many mainstream auto loans. It works with those who have credit scores as low as 620, and has loan terms up to 84 months, allowing you to spread the potentially higher purchase price of an EV over a longer period of time. You can apply online and get your loan funded in as little as one to two business days.

The PenFed Platinum Rewards Visa Signature® Card offers one of the highest rates of 5X on both fuel and EV charging, with no cap on the rewards you can earn. While you must be a PenFed member, it only requires opening a savings account and depositing at least $5.

You’ll also earn 3X on a number of everyday categories, like supermarkets (including most Target and Walmart locations), restaurants and on TV, radio, cable and streaming services. The reward points you earn on these purchases can be redeemed in a few ways, such as gift cards and for travel purchases.

The Chase Sapphire Preferred® Card’s (see rates and fees) is one of the most well-known cards on the market, and for good reason. Thanks to some recent updates, this $95 card added new 3X bonus categories, including gas stations and EV charging. This is on top of the 3X points the card earns on vacation homes, dining, online groceries, and top streaming services.

The Sapphire Preferred is currently matching its best-ever welcome offer of 100,000 points after spending $5,000 in purchases in the first three months. The card also features partnerships with both DoorDash and Apple TV, which provide complimentary subscriptions. For DoorDash, you must activate by Dec. 31, 2027, and the Apple TV offer must be activated by Dec. 31, 2026.

The U.S. Bank Altitude® Connect Visa Signature® Card could be a good fit for EV owners who are currently managing debt. It earns 4X points at gas stations and EV charging stations on the first $1,000 each quarter and offers an intro APR offer on both purchases and balance transfers. The 2X categories the card offers cover everyday categories, including dining, streaming services and grocery stores.

The card is also a great no-annual-fee way to get access to airport lounges. It comes with a complimentary 12-month Priority Pass Select membership, which includes four free visits a year; then you can pay $35 for subsequent visits. You can share your four free passes, which means you can take in a guest the next time you visit as well.

Insuring your electric vehicle isn’t all that different than covering any other car. You’ll still need to get car insurance that meets your state’s minimum liability requirements, as well as comprehensive and collision coverage if your car is financed or leased.

But some car insurance companies do offer unique perks to EV drivers, including discounts and coverage for things like chargers.

Lemonade’s auto insurance offers these incentives — not only does it protect both portable and home chargers, but it also has discounts available to EV drivers. Plus, Lemonade’s car insurance rates are based on how much you drive, so those driving their electric vehicles relatively few miles each year will pay less for coverage than those who drive more.

Travelers offers a variety of discounts that could be useful for those who drive electric, including for driving an EV or hybrid, as well as for models up to three years old or newer. That’s in addition to other discounts anyone can qualify for, like paying in full or insuring more than one car.

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