Is this the right time to buy an electric vehicle?
ASBURY PARK, N.J. (AP) — A wave of new electric vehicle charging stations across the country is coming as interest in alternatives to gasoline-powered vehicles is on the rise, though most of the plans were in the works before recent gasoline price spikes.
From coast to coast, cities big and small are adding charging stations for electric vehicles.
Strong demand is forecast for the vehicles, despite their higher prices and limited availability, meaning even more communities will feel pressure to add charging stations or risk having motorists pass them by in favor of plug-in-friendly places.
AP Photo/Wayne Parry
An electric vehicle charging station is pictured on March 21, 2022, in Asbury Park, N.J. Communities across the U.S. are adding such stations in an effort that began well before gasoline prices surged this year.
The charging stations aim to help drivers switch to electric vehicles from gasoline-powered ones, and public funding began several years ago before the current spike in gas prices.
But the investments come as gasoline prices in most of the country are above $4 a gallon and significantly more in some spots.
On Monday, New Jersey officials awarded $1 million in grants to install electric vehicle charging stations in 24 tourist areas around the state. The idea was to help spur tourism by reassuring visitors who own electric vehicles that they can come to a vacation spot in New Jersey and not run out of power to get back home.
“Don’t worry about it,” said Joseph Fiordaliso, president of the New Jersey Board of Public Utilities. “We have the equipment here so that you don’t have to have range anxiety.”
Spots getting money for new charging stations include Asbury Park, Atlantic City, Ocean City and several state parks and forests.
The money comes from the state budget. On Tuesday, NJ Transit, the state’s public transportation agency, will unveil electric charging stations at a bus depot in Camden, outside Philadelphia.
There are now about 625 vehicle charging stations in New Jersey.
AP Photo/Wayne Parry
An electric vehicle charging station is pictured on March 21, 2022, in Asbury Park, N.J.
On the federal side, the city of Hoboken, just outside New York City, is getting up to six new charging stations in a deal also announced Monday. U.S. Sen. Robert Menendez said the money from a federal spending bill “will help ease our transition to electric vehicles, reduce emissions, and create a cleaner environment for our children.”
Governments across the country are doing likewise. Bellingham, Wash., will add 90 charging stations over the next two years. Portland, Maine, recently entered into a 10-year agreement with a company that will install, operate and maintain more than 40 electric vehicle charging stations on publicly owned property.
Charleston, West Virginia, just added two charging stations at a public parking garage. Charlotte, North Carolina, Cleveland and Saginaw, Michigan, are among cities adding charging stations.
It’s happening in other countries, too. Glasgow, Scotland, is adding 164 new stations this year.
Almost half a million electric vehicles were sold in the U.S. last year, according to Kelly Blue Book.
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Photo Credit: Dreamer Company / Shutterstock
One of the most significant economic stories of recent months has been the rapid growth in inflation. Recent Consumer Price Index data from the U.S. Bureau of Labor Statistics revealed that consumer prices had increased by 7.5% from January 2021 to January 2022. These figures continued a trend of historically unusual month-over-month and year-over-year price increases dating back to the spring of 2021.
Many economists attribute the current period of inflation to several factors related to the pandemic. One is robust government stimulus: through a series of relief efforts, the federal government has pumped money into the economy over the last two years to support businesses and households through interruptions from COVID-19. The relative strength of the economy has given households more money to spend, and this has helped boost consumer demand. In particular, consumers are spending more on physical products than on services. However, ongoing challenges with the global supply chain have made it difficult to manufacture and ship products amid this increased demand. With supply unable to keep up with demand, many categories are seeing prices rise.
One of the categories where these dynamics have been felt most strongly is the market for new and used cars. Demand for vehicles has shifted sharply during the pandemic, dropping early in 2020 but recovering to near pre-pandemic levels since. However, shortages of semiconductor chips and other supply problems have made it difficult for car manufacturers to keep up with demand. This has meant that fewer new cars are coming on the market, which has increased the demand—and prices—for used vehicles. As a result, the Consumer Price Index for used vehicles was up more than 40% from January 2021 to January 2022, with prices for new vehicles up 12.2% over the same span.
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But spending on vehicles and related categories also shows how dynamics around supply, demand, and prices are shaking out differently by sector. While total spending on new and used motor vehicles increased from 2019 to 2020, other categories saw declines in total spending. Total spending on fuels, lubricants, and fluids dropped by more than 25%, and maintenance and repair and other services also saw slight declines. Differences in supply chains across these categories, reduced travel, and the aforementioned lower demand for services help explain why related expenses have not seen corresponding increases in spending as vehicle prices have increased.
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Spending in the new and used car market is also different based on geography. While the total annual dollar value spent on new vehicles exceeds that for used vehicles in every state, some states allocate far more towards used vehicles than average. Most of the states where used vehicles represent a larger portion of total vehicle purchases are found in the central U.S. In many of these states, at least 40% of vehicle sales (in dollars) are accounted for by the pre-owned market.
The data used in this analysis is from the U.S. Bureau of Economic Analysis 2020 Personal Consumption Expenditures. To identify the states spending the most on used vs. new cars, researchers at CoPilot calculated the percentage of all vehicle sales (in dollars) accounted for by used vehicle purchases. In the event of a tie, the state with the greater amount of used car spending per capita was ranked higher.
Here are the states where people are spending the most on used vs. new vehicles.
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Photo Credit: Checubus / Shutterstock
- Used as a share of total vehicle purchase value: 41.42%
- Used vehicle spending per capita: $501
- Total used vehicle spending: $3,856,200,000
- Total new vehicle spending: $5,454,500,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 41.44%
- Used vehicle spending per capita: $568
- Total used vehicle spending: $1,195,700,000
- Total new vehicle spending: $1,690,000,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 41.51%
- Used vehicle spending per capita: $590
- Total used vehicle spending: $4,066,600,000
- Total new vehicle spending: $5,729,800,000
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Photo Credit: Jonathannsegal / Shutterstock
- Used as a share of total vehicle purchase value: 41.78%
- Used vehicle spending per capita: $847
- Total used vehicle spending: $1,641,800,000
- Total new vehicle spending: $2,287,900,000
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Photo Credit: Mary Vanier / Shutterstock
- Used as a share of total vehicle purchase value: 41.84%
- Used vehicle spending per capita: $803
- Total used vehicle spending: $867,800,000
- Total new vehicle spending: $1,206,500,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 43.29%
- Used vehicle spending per capita: $735
- Total used vehicle spending: $2,389,300,000
- Total new vehicle spending: $3,130,200,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 43.33%
- Used vehicle spending per capita: $699
- Total used vehicle spending: $4,075,000,000
- Total new vehicle spending: $5,330,300,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 44.34%
- Used vehicle spending per capita: $662
- Total used vehicle spending: $4,470,000,000
- Total new vehicle spending: $5,610,200,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 44.61%
- Used vehicle spending per capita: $687
- Total used vehicle spending: $2,002,400,000
- Total new vehicle spending: $2,486,500,000
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Photo Credit: photo.ua / Shutterstock
- Used as a share of total vehicle purchase value: 44.72%
- Used vehicle spending per capita: $754
- Total used vehicle spending: $4,267,600,000
- Total new vehicle spending: $5,274,300,000
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Photo Credit: f11photo / Shutterstock
- Used as a share of total vehicle purchase value: 45.83%
- Used vehicle spending per capita: $892
- Total used vehicle spending: $2,821,200,000
- Total new vehicle spending: $3,334,700,000
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Photo Credit: Sean Pavone / Shutterstock
- Used as a share of total vehicle purchase value: 45.96%
- Used vehicle spending per capita: $626
- Total used vehicle spending: $2,800,700,000
- Total new vehicle spending: $3,293,500,000
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Photo Credit: Richard Cavalleri / Shutterstock
- Used as a share of total vehicle purchase value: 46.69%
- Used vehicle spending per capita: $575
- Total used vehicle spending: $607,600,000
- Total new vehicle spending: $693,700,000
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Photo Credit: Jacob Boomsma / Shutterstock
- Used as a share of total vehicle purchase value: 47.80%
- Used vehicle spending per capita: $843
- Total used vehicle spending: $645,500,000
- Total new vehicle spending: $705,000,000
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Photo Credit: Jacob Boomsma / Shutterstock
- Used as a share of total vehicle purchase value: 48.35%
- Used vehicle spending per capita: $708
- Total used vehicle spending: $631,600,000
- Total new vehicle spending: $674,700,000
