The Average American Wants $6,000 In Hard Cash To Switch To An EV

Electric Vehicles / Comments

A study conducted by Gunther VW Delray Beach in Florida makes for some interesting reading.

A recent study revealed that US citizens would accept no less than $6,000 ($5,998, to be precise) in cash if an electric car policy was enforced.

The above is an average of all 50 states, including Alaska and Hawaii. Wyoming is the least greedy state, as the folks there are willing to accept $3,131 in compensation to go EV. On the opposite end of the spectrum, people who reside in New Hampshire want $12,698 to go fully electric.

Gunther Volkswagen Delray Beach in Florida conducted the study. This VW dealership surveyed 3,021 car owners across 50 states to determine what would get them into an EV. Considering the German brand's push toward electrification, it was a worthwhile study to invest in.

Alas, the government and VW are going to have a tough time.

2021-2023 Volkswagen ID.4 Forward View CarBuzz

Around 49% of people surveyed want the cash up front and not as a tax credit, per the current system. It's unclear whether folks want this money do to spend as they wish or as a discount on a new EV, however. Under the new Inflation Reduction Act, the federal government will hand over the $7,500 tax credit to dealers at the point of sale so customers will benefit immediately.

The $7,500 incentive, which will be in force for the next decade, is well above what the average US citizen wants in return, but the tax credit for a used EV is $1,500 less. The study also doesn't mention what customers are willing to pay for an EV, which seems like crucial information to us.

Thanks to another study, we know people spend an average of $46k on a new car these days.

Front Angle View Volkswagen

While the Inflation Reduction Act will pay out enough to get people interested in EVs, the majority still have some concerns.

Roughly 65% of drivers believe electrification isn't happening fast enough to combat climate change. Only 13% support a blanket ban on ICE vehicles, and 88% believe California will not reach its emissions-free target by 2035.

California's Clean Air Act II was approved recently, and it's not a blanket ban on ICE vehicles. The conditions under which plug-in hybrids like the Jeep Wrangler 4xe (the current best seller in the USA) will be sold are quite challenging. PHEVs may not account for more than 20% of sales, and they must be able to travel at least 50 miles on electric power in real-world conditions.

The only car that currently meets this requirement is the Polestar 1, and it's sold out.

Jeep

The reasons why people would switch are pretty interesting. Roughly 43% of people will move to an EV to help fight for a cleaner planet, even though EVs are by no means zero-emissions cars. The GMC Hummer EV is a prime example, and customers tend to forget about mining, processing, and shipping. In second place (27%), we have cash incentives. A cheeky 7% would do it to drive in the carpool lane.

Interestingly, only 5% of people are interested in EV performance. It seems performance is no longer as alluring as it once was now that a humble sedan can accelerate to 60 mph in less than two seconds.

It's an exciting piece of research, though we remain skeptical of any large-scale study in which the surveyor has a stake. Out of interest, what would it take for you to switch over to an EV?

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