In recent years, electric car manufacturers have been touted by celebrities and politicians as a way to help the environment and save money on gasoline. Generous tax credits were handed out to encourage people to buy alternative fuel vehicles.
A report from the auto-research group Edmund.com says that the number of car owners, trading in their high-efficiency vehicles for traditional petrol cars, have significantly increased in the first three month of 2015. Edmund claims that 22 percent of drivers that have traded in their hybrids and EVs in 2015, bought a new SUV.
The number is higher than the 18.8 percent during the same period last year and 12 per cent three years ago.
According to Edmund, sales of EV and hybrid cars are generally down, accounting 2,7 percent of total new car sales in the first quarter of 2015 versus 3.3 percent for the same period the year prior.
Buying an EV can get the driver a $7,500 federal tax credit as part of Obama’s policy on getting a million electric cars on the road by 2015. On the other hand, electric cars were much more attractive when gas prices were high, while now with the current gas prices, the report says, it could take more than twice to save enough on gas to make up the price difference.
Besides, non-hybrid cars and SUVs have become much more fuel efficient, as federal fuel efficiency standards have been forcing car manufacturers to increase the miles per gallon of engine. Yet, a hybrid or EV car battery can cost thousands of dollars which is in favor of traditional fossil fuel vehicles.
Finally, the gasoline market is influenced by a number of factors, including rise and fall of gasoline prices and many of those who changed their EV for a SUV may soon start to regret their decision.