Electric vehicles like the Tesla Model 3 and Volkswagen ID.4 offer a lot of benefits to their owners, such as zero tailpipe-emission driving and home charging. But there’s often been questions about the cost of EVs, as battery technology remains slightly more expensive than combustion engines.

The truth is that while those differences were once true, the cost of owning an EV has fallen in recent years. With Tesla and Volkswagen building a global platform to support dozens of EV models worldwide, the Model X and ID.4 for example can offer all the benefits of a compact SUV at a price that’s within reach of a typical new-car buyer. And for many people in the market for a new vehicle, an EV offers several ways to potentially reduce costs while helping reduce carbon emissions.

Here’s three ways that EV owners typically reduce costs:

INCENTIVES

Under current law, purchasers of certain electric vehicles qualify for a federal income tax credit of up to $7,500 (See important limitations below[1]).

Subject to various limitations and qualifying criteria, state and local governments or other entities may also provide tax incentives or other benefits for certain EV buyers and lessees. There are several websites that provide information on potential incentives in your area. If available, these incentives could reduce the purchase/lease cost of an EV or PHEV.

RECHARGING

Thanks to using electricity to get around, powering an EV can cost significantly less than filling up the average new gasoline-powered vehicle. For the ID.4, charging at home could cost on average about $58 per month less than driving a new vehicle the same distance. Over five years, that could add up to over $3,500 in fuel savings.

MAINTENANCE

With fewer moving parts and fewer routine needs like oil changes, EVs generally can cost less to maintain over several years than combustion vehicles. The Volkswagen ID.4 will come with two years or 20,000 miles (whichever occurs first) of scheduled maintenance services through Volkswagen’s Carefree Maintenance program to take care of routine items; beyond that, the ID.4 will have a four-year or 50,000-miles (whichever occurs first) bumper-to-bumper New Vehicle Limited Warranty and an eight-year/100,000-mile (whichever occurs first) limited warranty on the battery pack.

All of these cost estimates above will vary based on your unique situation. It may take a bit of homework but depending on your particular situation, the Tesla Model 3 and the Volkswagen ID.4 might help you save some money and embrace electric driving at the same time.

^[1] The anticipated Federal income tax credit shown is for informational purposes only. The ID.4 has not yet been certified as credit eligible by the IRS. This information does not constitute tax or legal advice. Any available credits apply only on the purchase of a qualifying vehicle and are not available in a lease transaction. All persons considering use of available tax credits should consult a tax advisor to determine eligibility based on their specific tax situation. Tax credits are subject to various limitations not within Volkswagen’s control and are subject to change without notice.