rewrite this title EV Buying Guide: Know the Basics – NerdWallet

Electric vehicles have surged in popularity in recent years, as more car buyers have turned to EVs over traditional gas-powered vehicles. In the third quarter of 2024, Kelley Blue Book reported that EV sales in the U.S. grew by 11% year over year.

With EV adoption continuing to climb, car makers have responded by introducing a growing lineup of electric cars, SUVs and trucks. If you’re considering making the switch to an EV, this guide provides all the basics you’ll need to know.

The simple answer is that EVs are powered by electricity, either totally or partially, instead of gasoline or diesel. Their electric motor draws power from a battery that can be charged from an external source. Some vehicles use a combination of electricity and gasoline (more about that later).

The first small-scale electric cars date back to the 1830s, and around the turn of the 20th century some of the first consumer models were electric. Interest in electric vehicles resumed in the 1970s. With technological advancements, environmental awareness and government incentives, the appeal and accessibility of EVs since then has steadily grown.

EVs operate by using a battery or batteries — often called a battery pack — to store electrical energy that powers an electric motor to turn the wheels. The battery is charged by plugging into a power source, such as a wall outlet at home or a public charging station.

Most EVs use regenerative braking, meaning when a driver steps on the brakes, kinetic energy is captured and put back into the battery. Regenerative braking helps minimize energy consumption, improves battery range and reduces brake wear and tear.

There are three main types of electric vehicles on the market, and you’ll hear them referred to by the acronyms BEV, PHEV and HEV. Each one operates differently.

For a novice EV buyer, one of the most important aspects to understand is charging and how that impacts your range.

Range is how far you can drive before needing to recharge. Factors like battery size and capacity, driving speed, outdoor temperature and tire condition affect your range. Most new BEVs have a range between 200 to 400 miles per charge, though it can vary widely.

There are three levels of EV charging. Each uses different equipment, resulting in EV charging times that can go on overnight or take 30 minutes or less for a full charge.

The public charging infrastructure in the U.S. is still somewhat limited, but it is growing. According to the Federal Highway Administration, as of August 2024 there were 192,000 publicly available charging ports, with about 1,000 new public chargers being added weekly. Semi-public charging stations, such as at workplaces or businesses, are also available.

Most BEVs and PHEVs are powered by lithium-ion batteries, but other types of batteries are used. Lithium-ion batteries are the most common because they charge faster, hold a charge longer and have a longer lifespan. Here are some common terms to know about EV batteries.

The cost to replace an EV battery when it’s out of warranty can vary widely — from $5,000 to about $20,000. However, battery prices have been declining due to advances in technology and production.

The good news is that it’s unlikely you’ll ever need to replace an EV battery, because they’re designed to last — often a decade or more. Following manufacturer guidelines, including charging to only 80% full, can help extend battery life. And auto manufacturers offer battery warranties from 8 to 10 years or around 100,000 miles, which covers any significant reduction in capacity.

Of course, there can also be downsides. If you’re traveling, finding a charging station isn’t as easy as finding a gas station, and it will take you longer to fill up — what takes a few minutes with a gas car can take more or even hours with an EV.

Also, EVs are new enough that they tend to come with an element of the unknown, with many makes and models having a short track record. In a recent Consumer Reports survey of car owners, EVs from the last three model years had 79% more problems than gas-powered vehicles.

When deciding whether to buy an EV or choosing the best make and model for you, here are some things to think about:

As with any vehicle purchase, you’ll also want to check safety ratings from the National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS). And as there are electric options across most all vehicle segments — coupes and sedans, hatchbacks and SUVs, trucks and vans — think about your budget, safety features, in-car tech, cargo or trunk space, seating capacity and drivetrain needs.

You can find some EVs that cost less than $40,000. On the other end of the spectrum, luxury models can be well over $100,000. And, while the gap is closing, EVs continue to be more expensive than their gas-powered counterparts.

The trade-off for a higher purchase price is savings from lower fuel and maintenance costs over time. A study by Consumer Reports found that EV owners save an average of $6,000 to $10,000 over the lifetime of their vehicle compared to gas-powered cars.

There’s also a federal EV tax credit of up to $7,500 on the purchase of a new electric vehicle; used electric car buyers may qualify for up to $4,000. And you can choose to transfer the credit to an eligible dealer in order to realize an immediate discount at the point of sale. (All that said, fewer cars are qualifying for the benefit as battery manufacturing restrictions tighten, and the very existence of the credit faces political maneuverings in Washington.)

Beyond the purchase price, you’ll want to factor in other EV ownership costs such as charging equipment, electricity and insurance. And there are a few simple steps you can take to possibly lower your upfront and ongoing expense even more.