Vehicle Purchasing Behavior, Expenditure, and Potential Barriers to Uptake of Battery Electric Vehicles in Underserved Communities

Kelly PhD Hoogland and Scott PhD Hardman

Institute of Transportation Studies, Working Paper Series from Institute of Transportation Studies, UC Davis

Abstract: Plug-in electric vehicles (PEVs), including both battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are crucial forreducing emissions and meeting sustainability targets, yet their adoption has been limited primarily to higher-income and new car buyers, leaving most low-income households without access. To help inform policies that will accelerate access to used BEVs in particular, this study explored car buying behavior, costs, and usage within and between groups defined by vehicle condition (new vs. used), fuel type(battery-electric vehicles [BEVs] vs. internal combustion engine vehicles [ICEVs], and income level. BEV owning, new-car buying, andhaving higher incomewere each associated with one another. On average the proportion of total income spent on vehicle-relatedexpenses is at least six times higher for householdswith incomes less than $75,000 than householdswith incomes of $250,000 or more. While BEVs offer savings in maintenance and fuel cost compared to ICEVs, the initial price for both new and used BEVs may need to be subsidized to alleviate cost burden for lower-income households. Used car buyers, ICEV owners, and lower-income householdspredominantly do not purchase or maintain their vehicles at automaker dealerships and tend to buy older vehicles withmore mileagethan would be covered by BEV warranties. These findings have implications for the current structure of financial incentives being limited to automaker dealerships. Other possible barriers to BEV uptake for lower-income households and used car buyers, include reliability concerns and limited home charging access. BEV adoption across all income groups could be increased by broadening eligibility for incentives, enhancing battery warranties, offering battery replacement rebates, and expanding home charging infrastructure.

Keywords: Engineering; Plug-in hybrid vehicles; Electric vehicles; Automobile ownership; Operating costs; Subsidies; Electric vehicle charging (search for similar items in EconPapers)
Date: 2025-05-01
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