Electric Vehicles Aren’t Selling, so General Motors Turns to Costco for Help

After a slow season of electric vehicle sales, General Motors is partnering with Costco and utilizing the retailer’s Auto Program to boost its profits. GM’s North America President Marissa West is enthusiastic about the move and told CNBC that she is “really bullish on Costco.”

She added that the partnership is a “huge opportunity” for GM to reach over 50 million US Costco members. While Costco Auto doesn’t sell cars, it acts as a third-party service that links shoppers to dealerships like GMC, which is owned by GM. What’s more,

Costco Auto gives customers incentives and deals, making it easier for them to save money on electric vehicles. Right now, Costco members can earn a $1000 incentive if they buy or lease a 2023 or 2024 Chevrolet model, including GM’s Chevrolet Blazer EV and the Chevrolet Equinox EV.

And if you’re not sold yet, here are some ways having an electric vehicle can save you some money .

Costco Secrets: 7 genius hacks all Costco shoppers should know

Electric cars don’t require oil changes

Photo Sesaon/Adobe

If you drive a gas-powered engine, your engine requires moving parts that need to be attended to on a regular basis.

But with an electric vehicle, you won’t have to worry about oil changes anymore. This could easily save you $40 or so every 3,000 miles.

You might catch a break on some maintenance

Shutter2U/Adobe

There are other maintenance issues that you might not have to worry about when you buy an electric car.

For example, EVs use regenerative braking, a technology that helps you avoid some of the typical maintenance issues you face with brakes on a gas-powered vehicle.

An EV transmission also isn’t as complicated as one for a gas-powered car, so transmission maintenance won’t be as much of a concern.

There’s no gas tax

Quality Stock Arts/Adobe

In addition to the cost of a gallon of gas, you typically pay taxes added on by your state government or the federal government. This extra revenue might be earmarked for road or infrastructure improvements, which benefits both gas and electric cars.

But if you’re charging your electric vehicle at home or at a public charger, you can avoid those gas taxes.

Make Money: 8 things to do if you’re barely scraping by financially

You can get tax incentives

Gina Sanders/Adobe

The U.S. government as well as some state governments have created tax incentives to encourage more people to buy electric vehicles.

The IRS website describes the factors that make you eligible for a federal tax credit.

Do some research before you buy a vehicle to see which tax incentives are available. Check with the IRS, state tax departments, or your local dealer.

Electric cars have fewer moving parts

BASILICOSTUDIO STOCK/Adobe

An electric vehicle may have fewer moving parts than a car with a traditional combustion engine. Because of this fact, EVs can be easier to maintain when it comes to routine care.

Your EV also may be less likely to require repairs, which can save you money on costly fixes.

Some depreciate slowly

Wirestock/Adobe

Depreciation can be a factor for some buyers who plan to eventually sell or trade in their vehicle for a different model.

Regardless of what’s under the hood, a car can start depreciating as soon as it rolls off the lot. And it’s true that many electric cars depreciate even faster than their traditional gas-powered cars.

However, desirable models, such as Teslas, may retain their value better.

Make Money: 8 things to do if you’re barely scraping by financially

They don’t tempt you to spend more at the gas station

bannafarsai/Adobe

Think of all the times you have had to drive out of your way to find a gas station: Doing so wastes gas and money.

Going to the gas station also might tempt you to duck into the store to pick up some snacks, thereby spending even more. In fact, gas stations make the majority of their profits from drivers going inside and buying items.

On the other hand, an EV charger in your own garage is a convenient solution that doesn’t require a search for a station.

A few cons to owning an electric vehicle

Serhii/Adobe

There are also some drawbacks to owning an EV. Before you buy one, here are some of the downsides to consider if you’re trying to save money.

Con: Infrastructure

unlimit3d/Adobe

The infrastructure for charging electric cars in public isn’t that robust. You’ll certainly have a much easier time finding a gas station.

A good solution may be to install a charging station at your home, which makes charging your car easy and convenient. But charging stations are an added expense. Not only do you have to pay for the station itself, but you also might owe installation fees.

Con: Availability

tong2530/Adobe

Electric vehicles have become more popular in recent years, and the demand for EVs outweighs the supply. Some manufacturers have created years-long waiting lists for popular models.

Because of this, some car dealers are raising prices above the sticker price to take advantage of current demand.

Con: Increasing costs

slavun/Adobe

Another factor driving up the cost of electric vehicles is a rise in the costs of the materials to make them.

Metal prices are going up, which could affect the final price of the vehicle. And the cost of components like lithium, which is needed for the batteries in electric vehicles, is also on the rise.

Those costs might be passed to consumers when they’re ready to buy an EV.

Bottom line

Home-stock/Adobe

Electric vehicles may be a good way to get around while keeping some extra cash in your wallet . The upfront cost can be high, but over time, you might come out ahead.

Buying an electric car can also lower your carbon footprint, and it’s hard to put a price on that.

More from FinanceBuzz:

Can you retire early? Take this quiz and find out.