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Will the Used Car Industry See an Increase or Decrease in Prices in Response to Electric Vehicles?

Yong Lee • June 27, 2022
blue EV being charged

With rising fuel costs, a rapid surge in used car prices and several new electric vehicle models offering great range and performance, many drivers are exploring the possibility of switching from fuel to electric.


While it’s difficult to predict when or if traditional fuel vehicles will ever become obsolete, it’s useful to gather information on owning an electric vehicle before taking the leap from traditional fuel to an alternative.


Are EVs Cheaper Than Used Gas Vehicles?


It’s typically cheaper to run electric and hybrid cars than gas-only vehicles. Electric vehicles have built-in batteries that need to be charged regularly to ensure your EV can run.


If you’re charging your EV at home, you can think of your car as another device that’s running on electricity, just with much greater power demands. The increase in your monthly energy bill will depend on how much you drive and the cost of electricity where you live. For example, the current cost of electricity in Baltimore averages at 13.1 cents per kilowatt hour. Typically, an EV uses 30 kWh to run for 100 miles, which means a 100-mile trip will add roughly 4 dollars to your bill. If you put approximately 1,000 miles on your vehicle every month, you’ll end up adding an extra $40 to your electric bill, give or take. Considering current gas prices, this sounds like an excellent deal, so where’s the catch?



While it’s generally cheaper to maintain an electric car, EVs are significantly more expensive to purchase than regular cars. Their cost is comparable to owning a luxury vehicle, which is not something most people can afford.


Why Are EVs So Expensive?


On average, electric vehicles cost 10 to 20 percent more than their gasoline counterparts. For example, the price for the 2022 Honda CR-V Hybrid starts at $31,610, while the price for the gas-only version starts at $26,400, which is a roughly 17 percent difference in cost.


The reason why the upfront cost of electric vehicles is so high has to do with the cost of batteries that power the vehicles. Many EVs come with ion-lithium batteries, and mining lithium is an expensive endeavor. With electric vehicles becoming more and more mainstream on the market, it’s believed these high prices will ultimately drop and become more affordable for the average driver.


What Other Upfront Costs Should I Expect?


Charging your EV can be time consuming. It may take several hours for your vehicle to be fully charged. To save time and prolong your EV’s battery life, it’s a good idea to install a Level 2 charger in your home, which allows you to charge your vehicle five to seven times faster than by plugging your charging cable into a common household outlet.


Installing a Level 2 charging system will cost you around $2,000, but you’ll spend significantly less time charging your EV.


Are There Any Incentives for Buying an Electric Vehicle?


If you purchase a new EV, you may be eligible for a non-refundable tax credit, which amounts to anywhere between $2,500 to $7,500. While the tax credit is no longer available on Tesla and General Motors vehicles, there are several other makes and models that still qualify for this incentive.


What About Maintenance Costs?


While the upfront cost of an EV is more expensive than other vehicles, you’re likely to save a significant amount of money on maintenance. EVs have fewer parts than traditional vehicles, which means you won’t have to spend money on things like oil changes, tune-ups or leaking engine gaskets.


The Bottom Line


It’s hard to determine which option will become cheaper in the upcoming years—electric vehicles or used gas-only vehicles. While both options have several advantages and disadvantages, EVs allow you to not worry about the unpredictable nature of gas prices. You’ll also drive an environmentally friendly vehicle and contribute to a greener future, which is something worth considering.


Ready to Trade in Your Used Car for an EV?


If you’ve recently purchased an EV and are looking to sell your used car for a competitive price, look no further. At Direct Car Buying, you’re guaranteed a firm offer within just a few hours of telling us about your vehicle.


We also have a rich inventory of pre-owned electric vehicles for you to explore.


If you’re in the DMV, Maryland or Virginia, call us today at 877-867-0641 to learn more.

GMC truck

How General Motors Is Converting to Electric Vehicles

By Yong Lee • June 5, 2023
Whether you’re running errands or commuting to work, you have probably noticed the increased presence of electric cars on the road. Despite the recent coronavirus pandemic, electric car sales have been on the rise. Just last year, global sales rose by 43%, which equates to more than three million electric cars sold in 2020.  Even the steep prices of some electric vehicles have not deterred people from giving them a go. The technology behind these vehicles seems to justify and outweigh their higher purchase cost. After all, electric cars are extremely quiet, generate no pollution and have no gas fuel costs. The latter means that buyers save money they would otherwise spend on gas. As the world continues to move toward a safer and greener future, the goal of the automotive industry is to spearhead this movement by producing millions of electric vehicles, with vehicle options for every type of person and business. GM Is on Its Way to an All-Electric Future General Motors, one of the manufacturers trying to lead the charge in electric vehicle technology, is committed to releasing 30 new global electric vehicles by 2025. GM is shaping up to be one of the trailblazers in designing, engineering and producing EVs for every style and customer. The company is building a competitive advantage in batteries, software, vehicle integration, manufacturing and customer experience. The Detroit automaker has adopted a bold all-or-nothing strategy. GM has set an ambitious target to completely phase out gas and diesel engines for all light-duty vehicles by 2035. Additionally, 2035 will also be the year when GM goes completely carbon neutral at all facilities worldwide. GM’s Ultium Batteries and Platform GM’s focus on innovation and efficiency may be what sets them apart from competitors. The manufacturer’s Ultium batteries are big step forward in the EV industry. These large-format, pouch-style batteries can be stacked vertically or horizontally inside the battery pack. This can significantly optimize battery energy storage and layout for different vehicles, such as Buick, Cadillac, Chevrolet and GMC. The battery packs can house six, eight, 10, 12 or up to 24 modules depending on what the vehicle type requires. This grants more freedom in the product design process. With no need to design around gas tanks, engines, radiators or exhaust pipes, the Ultium battery packs can be arranged to optimize the vehicle’s design, comfort, quality of driving and storage. Moreover, Ultium energy options range from 50 to 200 kWh, which could enable an estimated range of up to 400 miles or more on a full charge and 0 to 60 mph acceleration in as little as 3 seconds. As GM further improves their Ultium battery solution, vehicles manufactured with them will be increasingly efficient, comfortable, aesthetically pleasing and benefit from prolonged battery life. GM Fleet GM’s plans to go all electric include enticing businesses to transition from traditional fleet vehicles to electric vehicles only. No matter their size or segment, GM promises businesses many benefits to investing in their products: Versatile electric vehicles for any business segment Front, rear and all-wheel drive options Low battery costs Outstanding vehicle performance GM’s multi-faceted strategy emphasizes cost efficiency. As long as electricity continues to be more affordable than fossil fuels, electric fleet vehicles that boast adequate range will become increasingly appealing. Shop for Used Electric Vehicles at Easterns Automotive Group Have you considered test driving an EV to see what the hype is all about? Or maybe you’ve already made the decision to transition from a fuel-powered vehicle to an electric-powered car? Whether you’re just curious or are resolute in your decision, Easterns Automotive offers a diverse array of used electric and hybrid cars for you to explore. If you’re in Maryland, Virginia or the DMV, call us at call us at (877) 867-0641 or visit one of our dealership locations.
electric pickup truck

What You Need to Know About Electric Pickup Trucks

By Yong Lee • June 5, 2023
Pickup trucks are an American staple. Other than their perceived magnificence and cultural significance, there are several reasons why so many people choose them over regular cars. Pickup trucks are perfect for hauling large objects, like furniture, lumber or heavy tools. They make driving in the snow a not-so-nerve-racking experience and, thanks to the generous ground clearance and optional four-wheel drive, pickup trucks are go-to vehicles for off-roading. Because of their all-encompassing functionality, quality-built pickup trucks don’t depreciate as much as other vehicles and, if cared for, retain their value for many years. However, with rising gas prices and more urban living, many people are ditching their beloved pickups for smaller and more affordable vehicles. Is it possible to have your cake and eat it too? The answer might lie in the electric pickup truck. While it retains the functionality of a traditional pickup, the electric truck relies on a rechargeable battery to power it, making it an environmentally friendly and money-saving alternative. If you’re looking to purchase an electric pickup truck, or another electric vehicle, there are several things to consider. What Is the Future of Electric Pickup Trucks? As the auto industry heads toward an all-electric future, automakers are taking the plunge and launching their own electric pickup truck models. While the release details of many models are currently somewhat vague, there is talk of seven brand-new models hitting the auto market within the next few years. Ford, Chevrolet, GMC Hummer and Tesla are trailblazers in the electric pickup truck revolution, but other lesser-known manufacturers like Bollinger and Rivian are also coming up with their own designs. Appearance-wise, electric pickup trucks will range from traditional and mainstream looking, like the Ford F-150 Lightning, to futuristic-looking, like the highly anticipated Tesla Cybertruck. Will Electric Pickup Trucks Be as Powerful as Traditional Trucks? Since hauling and towing power are fundamental features of a truck, many buyers may be skeptical to give electric variants a chance. Because so many people buy trucks for work, they want to make sure their vehicles are powerful, reliable and can get the work done without requiring an inconvenient mid-day charge. Electric pickup trucks are supposed to be equipped with large battery packs with a 200-to-500-mile range depending on the make and model. This means you can drive your truck for hours before running out of electricity. How Much Will Electric Pickup Trucks Cost? Another perceived barrier to electric pickup trucks is their cost. While electric vehicles do tend to be pricier than regular cars, their costs are likely to go down. This is largely due to the cost of electric car batteries going down, which constitutes almost half of the price of an electric vehicle. The tentative base prices for the seven upcoming models range from $40,000 for the Tesla Cybertruck to $125,000 for the Bollinger B2. The average base price for an electric pickup truck is estimated at $67,000. However, these prices are likely to drop within the next six years. Will Electric Pickup Trucks Make Good Commercial Vehicles? The short answer is yes, they will. Commercial use of pickups comes with many incentives. Work trucks are often used as commercial vehicles. Their often-predetermined routes will make it easy for drivers to locate charging stations and incorporate them into their busy schedules. Their generous mile range will allow them to drive for at least a day, if not longer, without recharging the vehicle’s battery. Commercial use of electric pickup trucks also comes with a tax credit because of their emission-free status. Shop for Used Electric Vehicles at Direct Car Buying If you’re thinking about purchasing an electric pickup truck or an electric vehicle but are not sure where to start your search, Direct Car Buying offers you a pressure-free introduction. We offer a diverse array of used electric and hybrid cars for you to explore, and we make it easy for you to sell your electric or hybrid vehicle fast and for a great price. If you’re in Maryland, Virginia or the DMV, call us at call us at (877) 867-0641 or visit one of our dealership locations.

The Future of Electric and Hybrid Electric Vehicles in Washington, DC and Baltimore

By Yong Lee • June 5, 2023
In 2016, hybrid (HEV) and electric vehicles (EV) accounted for just one percent of all the vehicles sold worldwide. The industry estimates that by 2025 about 30 percent of all vehicles sold will be EVs and HEVs. Global sales for electric vehicles were up to 3.27 million as of 2019, and are expected to reach about 27 million by 2030. The rapid growth of electric and hybrid vehicle popularity is considered by many in the industry to be a cataclysmic shift in the auto market. Government incentives, pollution regulations and the affordability of electricity as a fuel source are driving rapid EV adoption. Auto Makers Committing to EV and HEV In January 2021, General Motors made history by being the first major U.S. manufacturer to make a total commitment to EV. Their goal is to eliminate gasoline and diesel car, van and SUV production by 2035. GM also wants to be a carbon neutral company by 2040. This switch will require a projected $27 billion investment into EV technologies and products between 2020 and 2025. At their current rate of change, GM is projecting that about 40 percent of their new vehicles will be pure EV by the end of 2025. Many other manufacturers are committing huge sums of money into electrifying existing and future models. Volkswagen has plans for roughly 70 EV models by 2030 and aims to increase EV production to 22 million with a $33 billion investment. Ford, already a leader in the HEV and EV market, will have spent $11.5 billion on new EVs by the end of 2022. One of President Joe Biden’s first actions in office was an order for the federal government’s fleet of roughly 645,000 vehicles to be converted to HEVs or replaced with EVs. Making that happen isn’t as easy as signing an order, but the symbolic gesture is an indication of where his administration wants to go. Consider the Postal Service, which accounts for about 228,000 of those vehicles . The average age of a Postal Service truck is an astonishing 28 years, and the agency spends about $2 billion a year on maintenance. The new Postal Service truck design released in February 2021 isn’t completely electric, but the trucks are designed to be retrofitted for total EV in the future. Maryland Is Outpacing Virginia in EV Adoption The electric vehicle use rate in Virginia is still less than two percent, in large part due to a limited inventory of EVs and HEVs on new and used vehicle lots and a lack of purchasing incentives. Maryland, on the other hand, was offering a limited quantity of $3,000 state excise tax credits for the purchase of a plug-in EV. The only problem is that money ran out in June 2020. There’s currently a local state bill, the Clean Cars Act of 2021 (HB 44), to extend $26 million worth of EV and HEV purchase credits per year through 2023. The new Clean Cars Act would offer a $3,000 tax credit for plug-in or fuel cell EVs and a $1,500 tax credit for plug-in HEVs (with a minimum battery capacity of 5 kilowatt-hours). The legislation also includes $1.8 million per year in rebates for people and businesses that install Electrical Vehicle Service Equipment (EVSE). Is There Really Any Cost Savings for Drivers with an HEV or EV? Absolutely – a 2018 University of Michigan study found that the average cost of powering an EV vehicle in the United States is only $485 a year compared to $1,117 for gasoline powered vehicles. Fuel costs in the United States have vacillated wildly over the past 15 years, ranging from $1.50 to $4.00 a gallon. During that period EV drivers were paying about $1.20 on average for a gallons-worth of distance. Can You Find Pre-Owned Electric and Hybrid Vehicles in Baltimore and Washington D.C.? Yes, you can browse Easterns Automotive’s diverse selection of EVs and HEVs here . EVs and HEVs represent the inevitable future of vehicle ownership. Based on some loose climate goals, 90 percent of the nation’s vehicles should be electric by 2050. None of these mandates or estimates are codified in permanent laws, but there’s no telling what types of EV and HEV regulations or requirements will be passed over the next 10 to 20 years. There’s nothing to stop you from getting an electric or hybrid electric vehicle today and cutting your fuel costs in half. Depending on where you live you may also qualify for tax credits or other purchasing incentives. Call your nearest Easterns Automotive location at (877) 867-3613 to learn about pre-owned electric and hybrid electric vehicles for sale near you .
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