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Department of the Treasury announces $1bn upfront savings in consumer vehicle sales

Department of the Treasury reports electric car savings

The Department of the Treasury announced over $1bn in upfront savings on 150,000 clean vehicles.

The average American has saved around $1,750 annually on fuel and maintenance costs according to the Treasury. This means that over the average vehicle’s lifespan (15 years), an electric car owner stands to save $21,000.

The Treasury’s Office of Economic Policy has stated in a report that “owners of electric vehicles will save $18,000 to $24,000 more than if they had purchased a comparable gasoline vehicle instead.”

Treasury Department announces $1bn upfront savings on electric vehicles

This is a substantial figure considering the 150,000 buyers that have used the savings offered by the Biden-Harris administration’s Inflation Reduction Act.

Secretary of the Treasury Janet L. Yellen said, “Consumers are saving up front and over time, with $1,750 savings on gas and maintenance each year and $21,000 saved over the lifetime of a vehicle.”

This equates to $262 million annually in fuel and maintenance costs for all those vehicles and up to $3.2 billion in costs over the vehicles’ lifetimes.

It’s a clear sign of progress: clean vehicle sales, including battery electric, fuel cell, and plug-in hybrid vehicles, have risen since 2023. A record 1.5 million in sales shows a significant year-over-year growth from 2020, indicating a growing preference for cleaner vehicles among Americans.

As we reported, companies like Tesla face stiff competition for electric vehicle sales in the United States. Sadly, this can be seen in their sale prices for marquee models and the massive job cuts and asset sales spectators have seen across 2024.

BP has also shouldered into Tesla’s corner of the electric car charging market. As we covered last month, the global energy and fuel supplier is circling over Elon Musk’s Supercharger facilities across the United States.

Image: Ideogram.

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