Detailed Price Information for Ford/Azure Dynamics Transit Connect Electric
The Ford Motor Company started shipping a battery-powered version of its Transit Connect delivery van in late 2010. But small business owners will have to work hard to get the EV version of the Transit Connect, and to pay through the nose. That’s because for now, it will only go to high-profile corporations such as AT&T, Johnson Controls Inc. and the New York Power Authority. Ford will only produce 600 or 700 vehicles annually.
The price tag is steep, at around $65,000. Even after federal and local incentives—which should bring down the cost of the Ford Transit Connect Electric to around $57,000, it’s more than double the price of the gas-powered version. Maybe that’s what it’ll cost for small businesses to take advantage of being one of a select few companies that can make the eco-friendly claim that its deliveries are powered by electric fuel.
As with most plug-in vehicles, the Focus Electric qualifies for a $7,500 federal tax credit—which you can claim on your federal income taxes if you purchase it yourself. Many EV supporters would like to see a much bigger tax credit for delivery trucks running on electricity, but that’s not yet in place.
Even with the $7,500 credit, businesses and individuals will only qualify for the entire credit if there’s a tax liability more than that amount. If Ford decides to lease the Focus Transit Connect Electric that option may be a good choice if you don't have a high tax liability; when you lease the vehicle Ford is able to use the entire $7,500 tax credit as an additional down payment on the lease and then can claim the tax credit themselves. In addition to the federal tax credit, many states offer additional lucrative incentives—including state tax credits, instant cash rebates, carpool lane access, and special parking privileges.
As with all cars running on electricity and an electric motor, the Transit Connect Electric's operating cost per mile can be several times lower than a comparable combustion-engined vehicle. Using the U.S. average electricity price of 12 cents per kilowatt-hour, the TC Electric will cost approximately 3-4 cents per mile to operate. Electricity prices are incredibly variable around the country and world, so you'll want to do your own calculations depending on where you live. The Transit Connect Electric also benefits from having a relative handful of moving parts compared to a combustion-engine car and drivetrain, and also lacks emissions equipment, which can add up to significant service savings over time—no oil changes or catastrophic mechanical failures.
The Transit Connect Electric really doesn’t have competition. It’s the only all-electric delivery van suited to small businesses.