March 25, 2024

Advantages of the Electric Car

The electric car is ceasing to be a project of the future and is being implemented more and more strongly in the present reality. This is reflected in data from the European Automobile Manufacturers Association (ACEA). According to the same, there has been an increase 2018 of 50% in sales of this type of car 2018 compared to the previous year.

The electric car is one of the most environmentally-friendly vehicles. Although it is true that it is not 100% clean (no car is), the use of these means considerably reducing the emission of greenhouse gases and atmospheric pollution. Moreover, this positive impact will be even greater if the electricity used to charge them comes from renewable energy sources.

Advantages of the electric car

The main benefit of this type of vehicle has an impact on the planet and climate change. Electric vehicles significantly reduce CO2 and greenhouse gases. However, the ecological aspect is not the only advantage; there are many other advantages of various kinds. For example, users who opt for an electric car will have significant financial savings in the long run.

In addition to the tax rebates that we will see below, the purchase of this vehicle also has an economic impact in terms that are more difficult to quantify. The Quadis network of official dealerships and workshops points out that, as they do not have a traditional engine and gearbox, electric vehicles have fewer mechanical breakdowns. The reason is that they have very few moving parts. This also translates into less maintenance, as there is no need to change filters, oil, or other fluids. Only the inevitable, such as brakes or tires, need to be maintained.

An article in El País entitled “Ahorro casi 300 euros a month in fuel alone and I park for free” explains the economic savings that electric vehicles represent. In it, an electric car user claims that after driving 26,000 kilometers in one year, he has saved 3,000 euros compared to his previous fuel car. This is because he used to pay 300 euros a month for fuel and now only 30 euros for electricity. A saving that is greater since he claims that, as he has the DGT Zero label, he does not have to pay for parking.

On the other hand, many experts point out that driving an electric car is more comfortable than driving a traditional vehicle. This is due to factors such as the fact that it does not emit noise, which is important, especially for users who spend more time behind the wheel. This type of car is also safer than traditional cars. The reason is that they have greater stability due to their weight and battery distribution. In addition, the aforementioned article in El País discusses how electric vehicles help reduce stress. Users and experts say that driving an electric vehicle is smoother, more relaxed, and quieter than driving a fuel-powered car.

Tax benefits of the electric car

The different institutions of the Public Administration have promoted measures to encourage the purchase and use of electric cars. Through tax benefits, among other types of aid, it is intended that more and more users opt for this type of vehicle. The general public can enjoy many of these bonuses.

For example, the owners of electric cars can count on up to 75% of bonuses in the Tax on vehicles with mechanical traction. Although it is better known as the Impuesto de Circulación. The tax reduction of this annual municipal tax will depend on the different ordinances of each locality.

Another economic advantage that the administration makes available to us is the aid and incentive plans for the purchase of electric vehicles. One of these programs approved by the central government is the MOVES plan. This plan allocates 45 million euros to encourage the purchase of this type of vehicle. The buyer, depending on a series of requirements, can obtain up to 5,500 euros in subsidies thanks to the MOVES plan.

Exemption from Registration Tax

Those users or companies that opt for an electric car will also be exempt from paying the registration tax. Precisely, the media have echoed that the Ministry of Ecological Transition has recently reformed this tax. Before, vehicles emitting less than 120 grams per kilometer of CO2 did not have to pay it. But with the new reform, both hybrid cars, gas hybrids, and the most modern diesel and gasoline cars that belong to this emissions range will also have to pay the tax.

Only electric cars are exempt from this tax, which is a tax advantage to be taken into account. Let’s take a practical example. The registration tax is calculated depending on the grams/km of CO2 emitted by the car. For example, let’s take the range in the middle of the barometer: 141-160 grams/kilometer of CO2. A car in this sample, before the tax reform, had to pay 4.75% of the value of the car in this tax. Now, after the reform, it rises to 11%.

Thus, if a user or a company wishes to purchase a new car for the value of 20,000 euros, if the vehicle is located in that range, he/she will have to pay 2,200 euros in Registration Tax. This amount will be lower or even higher if the grams/km of CO2 decreases or increases. The fact that the electric car does not have to pay this tax will help many buyers to opt for it.

The electric car and personal income tax

All these fiscal aids are not the only ones, there are more. Tesco Asesores states that companies can also benefit from tax rebates in the Personal Income Tax (IRPF) when using electric vehicles as company cars. This translates into savings for the employee and for the company in terms of salary costs.

In this sense, the IRPF regulation, according to Tesco, includes a series of tax benefits depending on the emission of the vehicles. In this way, we can divide these benefits into three main groups:

  1. The 30% rebate for battery or extended-range electric vehicles. Also for plug-in hybrid electric vehicles with a minimum range of 15 kilometers (market value not exceeding 40,000 euros).
  2. The 20% rebate for those hybrid vehicles or vehicles that can be propelled by internal combustion engines that can use alternative fossil fuels (market value not exceeding 35,000 euros).
  3. A 15% reduction in the valuation of the remuneration for vehicles that comply with the Euro 6 emission limits set out in Annex I of Regulation (EC) No. 715/2007 of the European Parliament and of the Council, of 20 June 2007, and whose official CO2 emissions do not exceed 120 g/km (market value not exceeding 25,000 euros).

Rewards also in the car-sharing of electric vehicles

All these tax advantages involved in the acquisition of an electric car can be complemented in some specific situations. This is the case of car sharing, which is a car rental service in which the user or company only pays for the time they use the vehicle.