Money Management

EVs are expensive, but there are ways drivers can keep costs manageable. Here are seven moves all EV owners should try. 

Electric vehicles are better for the environment and can save drivers money in the long run. But the high upfront costs still prove a pretty significant barrier to many drivers. Not only is there the vehicle purchase itself, but there are all the necessary extras, like auto insurance, vehicle registration, and charging station costs.

It might be a while before EVs are as affordable as their gas-powered cousins, but with the right strategies, you may still be able to squeeze one into your budget. Here are seven tricks wallet-conscious EV owners can use to keep their costs as low as possible.

1. Choose your car wisely

Some new EVs qualify for a federal tax credit of up to $7,500, while select used EVs qualify for a credit of up to $4,000. Beginning in 2024, you can apply this credit to the point-of-sale purchase, effectively reducing your purchase price. Check FuelEconomy.gov to learn which cars qualify for the tax credit.

2. Go with a green auto loan

Green auto loans are available through some banks and credit unions for EV buyers. They work the same way as a traditional auto loan, except they typically have lower interest rates. This can help you pay less overall. However, not all financial institutions have these types of loans so you may have to search online to find lenders that do.

3. Shop around for auto insurance

Auto insurance for EVs is typically more expensive due to the high repair costs for these vehicles. Shopping around is crucial to ensure EV buyers get the lowest costs possible. It’s best to get quotes from several top auto insurers before purchasing a policy. Drivers may also want to seek out insurance companies that offer discounts for the purchase of hybrid or electric vehicles.

4. Be strategic about home charging

Charging your electric vehicle at home is typically cheaper than using a public charging station. This is especially true for those who charge their vehicles overnight. Electric companies typically offer lower rates when fewer people are using electricity, which makes the middle of the night one of the most affordable times to charge your EV’s battery.

5. Look for free public charging stations

If you have to charge your EV on the go, look for free public charging stations. Sites like PlugShare can help you find the ones nearest you. You’ll often find these at car dealerships, some workplaces, and even in shopping areas.

6. Drive carefully

Driving carefully reduces your risk of an accident, which can save you a ton of money in and of itself. But it can also help your EV’s battery last longer. Fast acceleration and braking deplete the battery more quickly, so sticking to moderate speeds and smooth transitions will help you go farther on each charge.

7. Maintain your EV

EVs may need less maintenance than gas-powered vehicles, but they still need some. Keeping up with all recommended maintenance, including tire rotations and alignments, can also help your EV go farther on a single charge and last longer over time.

Even taking the above steps, be prepared to pay a high upfront price for EVs. If that’s not realistic for you right now, consider holding off for another year or two. EV prices are already starting to come down, and auto loan rates will also likely come down in time, which should make EV ownership more affordable for the masses.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Sam’s Club and Costco offer discounted prices on bulk goods. But here are the important differences between the two clubs that you need to know. 

Sam’s Club and Costco both provide the chance to get great deals on household items, electronics, and more. Shopping at the warehouse clubs should allow you to keep more money in your checking account when buying necessities and luxuries — especially if you’re a smart shopper.

For most people, though, it only makes sense to be a member of one warehouse club, not both. Deciding between them can be complicated, so watch for these four signs that you’re better off with a Costco membership.

1. You’re OK with paying a little more upfront for your membership

Costco membership costs $60 for a Gold Star membership, which is the entry-level option and the cheapest club membership available. You can also opt to be an Executive member, which comes with extra perks (more on those below). The total fee for an Executive membership is $120 a year.

Sam’s Club is a little cheaper. The entry-level Club membership is $50 annually and the upgraded Plus membership is $110. Sam’s is also much more likely than Costco to offer discounted memberships throughout the year.

If you’re OK with paying a little bit more upfront, then a Costco membership is worth considering. But if your goal is just to get into a warehouse club for a rock-bottom price, you’re more likely to be happy as a Sam’s customer.

2. You want to maximize your cash back

Sam’s Club and Costco offer the chance to earn cash back if you choose the upgraded membership. With the Plus membership at Sam’s, you can earn 2% back on qualifying purchases made at the warehouse club — but only up to $500 in cash back. Costco also offers 2% back if you have the Executive membership, but you can earn up to $1,000 cash back. If you want to earn the most cash back possible, a Costco membership is definitely the best option.

3. You want more locations to visit

There are close to 600 Sam’s Club stores across the United States and Puerto Rico, but Costco has significantly more locations — 871 as of November 2023.

If you only shop at your home store, then you’d likely want to pick whichever warehouse club is nearest to where you live — which could be either Costco or Sam’s. But if you want to maximize the chances of having a warehouse club near wherever you happen to be — including at work, when traveling, or when visiting friends, then you’d be better off with Costco due to the higher number of stores.

4. You want discounted insurance coverage

Costco offers discounted auto and home insurance through its partnership with American Family Insurance. Costco indicates members saved an average of $595.86 on their car insurance after switching coverage. Sam’s Club does not offer discounted insurance or have a partnership with insurers. So anyone looking to save on this product should opt for a Costco membership.

By considering these four big issues, you can make a better, more informed choice about which warehouse club is right for you and your finances.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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EVs cost a lot more than gas-powered vehicles. Read on for five tips to fit one into your budget. 

Electric vehicles are much friendlier for the environment than gas-powered vehicles, but unfortunately, they’re a lot harder on your wallet. The average cost of an EV in July 2023 was $53,469, according to Kelley Blue Book, while the average gas-powered vehicle only cost about $48,334. That’s a difference of over $5,000.

That actually represents an improvement over years past, but it’s still a stretch for many drivers. Fortunately, some smart strategies could help you squeeze an EV into your budget.

Buy used

There aren’t as many used EVs available as used gas-powered vehicles, but more are starting to crop up as EVs become more popular. You may be able to find some by visiting your local used car dealerships. You can also check online sites like Carvana to see what their inventories look like.

You’ll probably still pay more than you would if you were buying a used gas-powered vehicle, but you’ll save a lot compared to buying a new EV. Be sure to give the car a thorough inspection and test drive before you agree to buy it, so you know what you’re signing up for.

Take advantage of tax credits

The federal government offers tax credits of up to $7,500 for buyers of select new EV models and up to $4,000 for buyers of select used EVs. But in order to qualify for the credit, cars need to meet certain criteria, including final assembly in the U.S. and a certain percentage of critical minerals and battery components extracted or processed in the U.S. or a U.S. free-trade agreement partner. You can check out FuelEconomy.gov to see which models qualify for tax credits.

Prior to 2024, drivers who claimed EV tax credits had to wait until they filed their tax returns for the year to claim this credit. But starting now, drivers can apply that credit to the point of sale, effectively reducing their purchase price. The dealer will help you take care of this when you finalize your offer.

Consider a green auto loan

Some banks and credit unions offer green auto loans targeted at EV purchasers. These are similar to traditional auto loans in that they use the vehicle for collateral. But they typically offer lower interest rates. This could make your monthly payments a little more affordable than with a traditional loan.

Check with local financial institutions to see if any offer green auto loans. Compare some online providers as well. It doesn’t hurt to get estimates from a few of them to get a sense of what you’ll pay. Don’t just look at monthly payments. Think about closing costs and how much you’ll pay in interest over the life of the loan, as well.

Shop around for auto insurance

Auto insurance is typically higher for EVs because they’re more expensive cars. Shopping around is critical for drivers looking to keep their insurance premiums down.

It’s best to compare quotes from a handful of top insurance companies before purchasing a policy. Some insurers even offer discounts for EV and hybrid vehicles, so these are worth checking out.

Wait it out

If EV ownership still isn’t feasible for you even after considering the above steps, you may have to wait to purchase one. But that’s not necessarily a bad thing. Technology tends to become more affordable over time, and we’ve already seen this start to happen with EVs. Waiting even a year or two will likely open the door to more affordable options. Plus, auto loan rates may come down, which could make financing an EV even cheaper.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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It’s easy to go overboard on a home gym, but you can absolutely build a great home workout space without a ton of money. Here’s how. 

Scrolling through the New Year’s deals for exercise equipment, it’s easy to see how one could spend $5,000 or more outfitting a home gym. But you don’t need to hit your personal finances to get in a good workout at home. Here are a few tips for building a home gym without breaking the bank.

1. Start with the basics

Your home gym doesn’t need to rival the local Planet Fitness right from the starting line. Indeed, you don’t even need any fancy machines. You can build a perfectly functional home gym with a pull-up bar, resistance bands, some dumbbells, and a yoga mat.

Not sure what you need? Make a list of all of the exercises you want to do in your home gym. Then figure out how many of them actually require specific gear or equipment.

Be realistic about your needs — and about your budget. Sure, a treadmill would be nice, but if you already have a good running route through the neighborhood, maybe focus on strength-training equipment that would be more difficult to substitute for free.

2. DIY what you can (with safety in mind)

If you’re a bit handy and have the tools on hand, there are a few home gym projects you could do yourself.

Some sturdy flanges and a strong metal pipe can make a handy pull-up bar. Leftover cement from a backyard project? Cast it in cheap buckets to make DIY dumbbells. A drill and screws can turn spare lumber into a dip station.

You can check YouTube and fitness blogs for all kinds of DIY ideas. And this isn’t just for equipment. You can DIY your shelving, seating, towel storage — whatever you feel capable of building.

Just keep safety in mind; anything meant to hold your body weight should, you know, hold your body weight. Or, even better, well over your body weight. (I’m a firm believer that over-engineered is always better than under-engineered.)

3. Comparison shop deals

Whatever equipment you decide you need, be sure you’re looking for deals on it. This goes double for January when everyone is buying up fitness gear as a part of their newfound resolutions to get fit.

Most large exercise equipment — like treadmills, bikes, and weight machines — will be a “you get what you pay for” product. Aim for mid-tier or higher here. You’ll use the machines more if they feel sturdy and safe. (I’ve tried the cheap machines from Amazon. They’re utter junk.)

Oh, and don’t forget to check warehouse clubs like Costco and Sam’s Club — even if you’re not a member. If you can get a good enough deal on a big piece of equipment, it could be worth the cost of a membership and then some. Plus, these retailers tend to have great return policies!

4. Open a new card with a welcome bonus

When you’ve found a great deal and you’re ready to take the plunge on a pricey machine, consider which credit card to use for the purchase.

The best card for the purchase will depend on where you’re shopping. However, most retailers have cobranded store cards that could offer some decent rewards. At the very least, a good flat-rate rewards credit card will earn you 2% cash back or more.

You can also choose to open a new rewards card with a competitive welcome bonus. A single purchase of a $1,000 treadmill is enough to earn a welcome bonus of $200 or more from some of the best cash back cards.

5. Rehome gently used machines

If you can afford to be patient, give folks a few months to realize that their I-used-it-three-times treadmill has become a clothing rack. Then you can haunt social media, local thrift shops, and neighborhood buy-nothing groups for like-new exercise equipment.

This isn’t limited to strangers, either. Did your brother-in-law go full Bowflex — for about four weeks? Offer to open up that space in the garage by taking it off his hands.

Local gyms can also be good places to score deals on machines if they’re updating their stock. While gym-used equipment is bound to have some wear and tear (and some residual funk), it could be an affordable way to get commercial-quality machines.

Bonus tip: Add a cheap smart TV for free fitness routines

Spend 60 seconds on YouTube and you can find thousands of great workout and yoga routines for free. (Well, it’ll cost you at least two unskippable ads, but that’s YouTube these days.) You can also download all sorts of free fitness apps for your smart TV or phone.

It’s amazing how well a $75 smart TV playing fitness videos can turn even the starkest basement or garage into a fitness center.

Having a home gym may conjure images of expensive apartments full of high-end machines. But even just a dedicated corner of the den with some weight and a yoga mat can offer a ton of workout options.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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Subscribing to an airfare finding service could save you hundreds of dollars on business class tickets. Here are some of the best ones. 

Business class seats often give travelers more comfort when flying to their destination, with larger seats, more personalized service, airport lounge access, and better food. But all those perks come at a price — business class seats can easily cost thousands of dollars.

Thankfully, some services and websites make it much easier to find deals on business class seats that won’t break the bank or max out your credit card. Here are three of the best ones.

1. Skyscanner

Cost: Free

Skyscanner consistently ranks among one of the best platforms to find flight deals. Whether you use the mobile app or the Skyscanner website, it’s easy to find inexpensive flights, even for business class. Travel guide website Frommer’s said Skyscanner found the cheapest flight 13 times out of 28, and recommends that travelers always check the site first before booking elsewhere.

I found a roundtrip, non-stop business class flight from Charlotte, North Carolina to New York City, New York for $424, which included the ticket price plus taxes and fees. That’s not too shabby for a business class seat.

You can also set up price alerts within the app so you never miss a great deal. Skyscanner also lists the prices of airfares on a monthly calendar, similar to Google Flights, making it easier to select the best date at the lowest price.

2. Going

Cost: $199 annually for Elite membership

Don’t skip over this one just because you have to pay for it! Sure, free is nice, especially when you’re already trying to save money on airline tickets. But a $199 Going Elite subscription could quickly pay for itself after booking just one flight, and you can even try it free for 14 days.

There is a free version of Going, but the Elite subscription allows you to get premium economy, business class, and first-class deals. All you have to do is decide where you want to go and Going keeps track of 900 destinations worldwide, searches for the best deals, and then notifies you when it finds them.

One example the company gives on its website is for a deal it found an Elite member flying from Chicago to Paris for just $699…a 65% discount.

The Elite tier gives you lots of perks, including custom alerts for 10 destinations, international deals, mistake fares from U.S. airports, and the ability to use travel points and miles on business class seats.

3. Dollar Flight Club

Cost: $168 annually for Premium Plus membership

Dollar Flight Club is another great option for travelers looking for amazing deals on business class and premium economy tickets. The company’s Premium Plus membership will set you back $168 annually, but Dollar Flight Club says the average savings on a Premium Plus flight deal is over $700. I’m no math whiz, but I’m pretty sure that adds up to big savings.

The company lists a few business class tickets that have previously seen huge price drops, including a roundtrip flight to Spain for just $1,250…discounted from $3,700.

The membership gives you access to mistake fares and discounted domestic and international flights from four departure airports. In addition to deals on business class tickets, Premium Plus members receive priority support so you can contact Dollar Flight Club with any travel questions.

Another way to save money when booking business-class tickets

Subscribing to a service that curates the best business class deals could be a great way to save money on your next trip. But another great way is by staying flexible.

For example, choosing multiple destinations or different departure locations opens up more opportunities to find great deals. It may also help to leave on a different day than you originally planned. The more flexible your schedule is, the better your chance of finding a great business class seat.

Once you score a great deal on your business class seat, be sure to post your travel pictures to social media for all of us who are writing about traveling instead of, well, traveling. On second thought, just tell us how it was when you get back.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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