To EV or not to EV

I think a PHEV would work well for my usage. I drive about 275 miles a month except for the occasional drive to see family which is about 30 miles each way. So I could pretty much drive entirely on half or less of the 30 miles EV range on a daily basis and buy gasoline once a year. And I could recharge it from the 110v at home since it would be in the driveway 22-23 hours a day almost every day.
Id save money and get a gas burner. You're going to damage the ice engine due to fuel dilution and condensation etc. With your usage profile, and the added cost? Why? You barely buy gas as it is.
 
No, I disagree with that. The fundamental reason for a PHEV is you get to buy a car with smaller battery (usually 40 miles or so) and still have a gas engine to drive with as needed. The battery is almost always used to the max and get your money worth, and you can choose to use either gas or electric depends on where and when you refuel or charge.

People used to say hybrid is the worst in reliability but Prius proves it wrong. You have to buy the good one and avoid the bad one like Nissan Leaf or Nissan CVT (surprisingly Nissan Altima hybrid is good).
I had the best phev on the planet (arguably). It was underwhelming to say the least.

Underpowered
Poor driving dynamics
Poor awd system
Ice and ev concerns for longevity and PM expenses.
Cost as much as an EV
Chassis/suspension was originally designed for 500# less.

Just super lame.
 
Honestly - if I was getting $100K+ from an investment - I would not be looking to spend it.

I’d be looking to reinvest it.

If you want a car, buy a car. Buy it because you want it, or need it, and can afford it.

Don’t buy it because of a tax incentive.

Saving a little bit on taxes, while still paying a bunch of taxes, isn’t a great reason to buy a car.

I would be curious to see what the CPA says. You’ve got six months to do a 1031 exchange, that’s where I would be targeting the proceeds from this sale. Then you don’t pay taxes on any of it.

That said, I really was impressed by the Volvo XC90 we drive a few weeks ago. A plug in hybrid. Nice build quality. Well appointed. Nice driving dynamics. Really nice overall.

The plug in 30+ miles of range works perfectly for my wife’s commute and errands while the gasoline engine allows the range and refueling convenience for long road trips. Together, they provide about 400 HP for impressive performance.
 
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I’d go with a Tesla dual motor, If you can deal with the vehicle size offerings. They have the best batteries. And the best charging network if you decide to travel. Plus the performance is immensely satisfying!!

as far as investment thoughts, I know that any windfall is an opportunity for the IRS‘s confiscatory policies. Avoiding excess taxation is of paramount importance. If your income is particularly robust, there are “hidden” taxes that many don’t expect. It adds up fast.

furthermore, the idea that “investments” are successful, is just not true for many of us. I’ve lost money during downturns and it never recovered. I’ve explained why in other posts. the DJIA removes under performers, fills the spot with some high value stock. This gives the appearance of economic recovery. But if you’ve invested in those, you underperform too. What about traditional GM stock? Value went to zero, bankrupt. Annnnd it’s gone

and you, as an investor can’t just “install” a better performing stock and suddenly match the index’s value.
 
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I'll be talking to my CPA before anything happens, one way or another.
There are income limitations to get the EV tax credit. That $100k windfall might push you over the limit. I think you can use last year's AGI, but check with your tax professional.
 
He'll save 25k in gas alone by then. And have a more powerful and fun vehicle. For me the numbers msde great sense, and the fun factor is crazy high.
Not really, he is paying .37 kWh like I am, no solar or windmill so charging is not free or especially cheap. No need for a more powerful car, the man has fast toys for that, he drives the old Volvo to work and home and has been well satisfied with it.
 
Not really, he is paying .37 kWh like I am, no solar or windmill so charging is not free or especially cheap. No need for a more powerful car, the man has fast toys for that, he drives the old Volvo to work and home and has been well satisfied with it.
That's crazy. I am paying 0.12kwh, so I guess it varies! My monthly fuel bill dropped by over $400 when I switched from an Acura RDX to an EV.
 
That's crazy. I am paying 0.12kwh, so I guess it varies! My monthly fuel bill dropped by over $400 when I switched from an Acura RDX to an EV.
Savings, if any, can vary greatly by region. That could account for why I'm not seeing many EV's here, and @Trav isn't seeing many either. FTR my electric rates are high, his are insanely high.
 
I think a PHEV would work well for my usage. I drive about 275 miles a month except for the occasional drive to see family which is about 30 miles each way. So I could pretty much drive entirely on half or less of the 30 miles EV range on a daily basis and buy gasoline once a year. And I could recharge it from the 110v at home since it would be in the driveway 22-23 hours a day almost every day.
I have spent nearly my entire career analyzing the used car market and figuring out which types of vehicles will work best for specific businesses. If you Google long-term quality and click on the first listing, you'll see some of the work that I'm lucky to have done for the benefit of everyday folks looking for their next best car.

With all that said, you would be a terrible candidate for an EV given the current market. You don't drive nearly enough to get any genuine benefit other than the tax credit, which won't matter much since EVs are still heavily overpriced for right now.

I would encourage you to get a fun gasoline powered vehicles that fits your lifestyle. It could be a roadster or a convertible. An SUV. Whatever makes you smile when you turn the key.

I have owned well over a dozen EVs but, I also wear a lot of hats in the auto industry. Whatever I buy, I sell for more money and if I have an issue I usually can find engineers and repair shops who can do a deeper dive if I can't do it myself. All you'll be doing is engaging in some personal wealth destruction and driving a portion of your savings from $40k to $4k in about 7 to 10 years.

Tell us what you love, and chances are we can lead you to a nicer oasis. Probably one that isn't an Isuzu.

All the best

Steven Lang
 
The sale of the rental will incur long term capital gains but you must recapture any depreciation you took while you owned it. So say you bought it for $200k in 2013, took $7,200 a year in depreciation on your taxes for 10 years and sold in 2023 for $500k. Your new basis would be $128,000. You’d owe LTCG on $372,000. I’m not an accountant, so take it for what it’s worth.
 
Thanks to everyone for some great discussion so far. I am enjoying it and appreciate it. I realize I'm not really a great candidate for an EV given my limited driving. I anticipate adding another 100 miles a month next year when I start going to meet family for lunch again on a monthly basis, not a big change either way though.

It won't completely cover it by any means but I like the idea of using 11c Kwh wall outlet fuel rather than $3 pump fuel. But I also just like vehicles too much. So far I've always bought mid-range trim levels and always wish I had a few of the higher level features. I have an Escape SE and it is a very good and a nice vehicle. If I got the Escape PHEV I'd gain Nav, heated seats/wheel and many other things.

I had a Subaru Impreza many years ago and I like them and the "clique" nature of owning them. A high trim Outback would be a nice vehicle. I had a Volvo Turbo back in the '80s and liked that. The XC60 would be very nice but perhaps a bit too upscale in price.

I like the sporty stuff but am old enough I prefer the easy in/out of my Escape and similar. I like and want all the safety features possible. I don't have any use for self-driving foolishness.

I regularly think of things like the Mini, GTI and others that have active driver groups and do things like traverse the Mackinac Bridge etc. That would be fun to be part of. I was one of many drivers in the World's largest Corvette parade in Maumee OH in the late 70's. But those "fun" cars aren't as in/out friendly.

So enough yakking, thanks again for a great discussion.
 
The sale of the rental will incur long term capital gains but you must recapture any depreciation you took while you owned it. So say you bought it for $200k in 2013, took $7,200 a year in depreciation on your taxes for 10 years and sold in 2023 for $500k. Your new basis would be $128,000. You’d owe LTCG on $372,000. I’m not an accountant, so take it for what it’s worth.
I inherited it when my dad passed. I'm sure that will be part of what my accountant goes over with me. Thankfully he is excellent and relieves me of having to deal with any of that part.
 
That's crazy. I am paying 0.12kwh, so I guess it varies! My monthly fuel bill dropped by over $400 when I switched from an Acura RDX to an EV.
It is crazy high, add to that the additional fees and tax and one of most unstable grids I have ever lived with.
 
A very happy Bolt EV owner here. The value of that car is amazing -- if the compact hatchback form factor works for your situation. Also, it has a 100,000 mile/8 year powertrain warranty.

I'm not sure what kind of warranty other EVs have.
 
I inherited it when my dad passed. I'm sure that will be part of what my accountant goes over with me. Thankfully he is excellent and relieves me of having to deal with any of that part.

Then you’ll get a stepped-up basis at the time of your dad’s passing. Your new basis will be the fair market value at the time of his death which presumably is more than he paid for it in most any market in the country. You’ll owe less LTCG due to the new basis. I don’t think your driving situation warrants buying a new EV unless you really want one. Don’t let the minimal tax savings force you into buying a car you don’t want or need.
 
A little counterintuitive thinking on EVs for someone who doesn't drive a lot. There are advantages to an EV powertrain in minimal use situations. The motors and battery are minimally impacted by just sitting. You might be able to go years with no routine maintenance. There is nothing wrong with taking a 4-minute spin to the grocery store, while doing that regularly in an ICE vehicle is not a good idea. No worries about the gas going bad while the car sits. No worries about getting the engine up to temperature in the winter. Plug in the car to keep it warm all winter long. Depending on how much you drive, you might not even need a dedicated charger at home--a 110-volt cord might give you all the range you need. A couple of factors mitigating against purchasing any expensive new car that rarely get mentioned: higher sales tax, higher excise/property tax, higher insurance rates. Some places annual excise/property tax is a big annual bill and is usually based on car value. So, the higher the initial price the more you pay each year thereafter.
 
We are fortunate to not have most of those excise etc. fees in Texas. And yes, I suspect the 110v would be fine 99% of the time. If needed I could drive 7-8 miles to the Cracker Barrel and use their 240v while I enjoy a meal. I looked at the Bolt last year but there weren't any to be had. If the LTCG tax is going to be $7500 or more it is tempting and appealing to look at a Bolt and take the $7500 credit on it. I can see going out on an "electric drive" to count fenceposts and cattle and get BBQ somewhere just because. I'm not sure I see going on a "counting" drive in any ICE vehicle that would appeal to me.

And I agree with the points made about how the EV is probably better suited to my 1.5-3 mile drives to park and run errand(s) and then 1.5-3 miles home.
 
A little counterintuitive thinking on EVs for someone who doesn't drive a lot. There are advantages to an EV powertrain in minimal use situations. The motors and battery are minimally impacted by just sitting. You might be able to go years with no routine maintenance. There is nothing wrong with taking a 4-minute spin to the grocery store, while doing that regularly in an ICE vehicle is not a good idea. No worries about the gas going bad while the car sits. No worries about getting the engine up to temperature in the winter. Plug in the car to keep it warm all winter long. Depending on how much you drive, you might not even need a dedicated charger at home--a 110-volt cord might give you all the range you need. A couple of factors mitigating against purchasing any expensive new car that rarely get mentioned: higher sales tax, higher excise/property tax, higher insurance rates. Some places annual excise/property tax is a big annual bill and is usually based on car value. So, the higher the initial price the more you pay each year thereafter.
Well said, agree 100% all vehicles have qualities that one buyer might prefer over another. One size doesnt fit all.
Your usage would be much like the usage on our second car. It barely moves, I think I am going to have to replace the tires even though the tread is fine the side walls are showing signs of stress cracks. The are Pirelli's great tires but getting to old before we can wear them out!
It's a Mazda 3 2012 Skyactive with 90,000 miles on it.
Because it sits around so much we just took it to our "old" state that we just moved from for my wife to drop me off and pick up my motorcycle being stored in my past neighbors garage. As always the Mazda still runs flawless but was nice to give it a total of 6 hours run time about 4 of that on the interstate at 80 MPH to get the battery nice and charged and over all good run for the engine.

AN EV would be a good fit for us, right now the price is hard to swallow for what you get and in the case like yesterday, last thing I would have wanted to do was stop (or even wonder if I would have had to stop) and charge an EV> which was close to 200 miles each way and 4 hours of that at 80 MPH. Wife followed me on on the motorcycle. But if I did have an EV for a trip like that I would have took my gas SUV. SO for us as a second car the EV at the right price would work for us. I already know unless something drastic happens with prices coming down, chances are another ICE vehicle. Who knows ... ?
 
I had the best phev on the planet (arguably). It was underwhelming to say the least.

Underpowered
Poor driving dynamics
Poor awd system
Ice and ev concerns for longevity and PM expenses.
Cost as much as an EV
Chassis/suspension was originally designed for 500# less.

Just super lame.

If you are looking for that, you shouldn't be focusing on cost per mile or efficiency, just focus on getting a good car you like (sports car, SUV, truck, whatever) instead of focusing on EV or hybrid or gas. Some people like torque and they may pick Tesla, some people loves handling and they might pick a Miata / Lotus / S2000, and some like big V8 and they just buy a big V8.
 
That's crazy. I am paying 0.12kwh, so I guess it varies! My monthly fuel bill dropped by over $400 when I switched from an Acura RDX to an EV.
Same here $0.13. It would cut my driving costs to 1/4 what they are now if I made the Tesla my daily. I already cut them in half going from an F150 to the GTI. It puts things into perspective.
 
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