Best Electric Car Finance Deals [January 2023 Edition]

Electric vehicles are more efficient and affordable than ever before. Companies will only continue to add charging stations as time goes on. 

EVs are an environmentally sustainable choice that reduces the cost of ownership over its lifetime. There are now several different manufacturers offering EV options. 

Below we share the best EV financing options for this month.

Are EV tax credits still available? Check out our simple guide on EV tax credits and see which models still qualify.

Best Electric & Hybrid Car Finance Deals

Below is a list of some of the best finance deals on EVs, PHEVs, and hybrid vehicles right now. Most are at 0% APR and include a sizeable cash back bonus.

The first thing you must do is consider which type of EV you would like. Here are the different types of EVs:

• EV. This type of EV gets all of its power from the electric grid. You must plug it in to charge it, and then it derives all of its energy from that charge. It has 0 emissions.
• PHEV.  Plug-in hybrid electrical vehicles contain an engine and electric motor. They have a larger battery than hybrids and can charge via the grid. However, they recharge their battery through regenerative braking.
• Hybrid. A hybrid needs an electric motor and a gasoline engine to power the car. They offer far better fuel efficiency than a regular car because there are times when the electric motor does all or part of the work. The high-voltage battery pack is replenished during deceleration via a regenerative braking system.

EV Features

Before buying an EV vehicle, consider the following features:

• Range. The range is how far the car lasts on a full charge. Many times, the range is between 200 and 300 miles. Do you typically commute under 20 miles to work? Or do you frequently take very long road trips? Evaluate your typical driving patterns to assess a range that works best for you.
• Cost of Ownership. Buying an EV is more expensive than buying a gasoline car upfront. However, they are often far less expensive to drive and maintain, leading to cost savings over time. Regardless, you must still consider your budget when buying an EV.
• Charging Locations. Think about where you will charge your vehicle. Many people with their own garage tend to charge at home most often. However, you should also research nearby charging locations and chargers on your routes.
• Battery Life. The battery is one of the most important and most expensive parts of an EV. Consider the battery life, looking for one with a long life.

How to Get the EV Tax Credit

Tax credits are available to offset the cost of purchasing an EV. A federal EV tax credit allocates up to $7,500 for electric and plug-in hybrid vehicles purchased after 2010.

The federal tax credit is based on the capacity of the vehicle’s battery pack, not the cost of the vehicle. You claim the credit to reduce your federal tax liability on your income tax for the year you purchase the EV.

Many states also offer EV incentives, which can yield thousands of dollars in savings as well. Research the local incentives in your state to learn which purchases qualify and how to claim the incentives.

Read this post for more information about EV tax credits and for a full list of incentives by state and model.