There are more EVs than ever on the market; in fact the annual growth rate of the industry has gone up by 19%, to $231 billion in the last 7 years. Furthermore, the Environmental Protection Agency is planning to introduce limits on carbon dioxide emissions, so there has never been a better time to think about investing in an electric car. So what should you consider in terms of finance and budget?
The cost of the vehicle
In general, EVs are more expensive than their fuel-driven counterparts, however worldwide demand means that prices are coming down. For instance the 2018 Nissan Leaf, with a retail cost of $29,990 costs $690 less than the previous year. You could easily finance your purchase with a loan or credit card. It is worth considering when deciding to purchase that you could be eligible for a federal incentive that you can set against the cost of your new car. This tax credit is currently $7,500 – a huge amount of money, that wouldn’t be available if you were purchasing a car that runs on gas.
Fuel running costs
One of the most significant savings that you will make with an electric car, is in the cost of fuel. You should be aware however that the electricity that you are using may come from many sources, including burning gas or coal, as well as more renewable sources such as wind power, turbine power and solar power. Some commercial electric hook ups for cars and other vehicles do specify the source of the electricity, and you may find that power from sustainable sources is marginally more expensive. However a study made by the University of Michigan found that the average cost per year of running a gas powered car is $1,117. The average cost of running an electric car is $485. That is a significant saving. Over a 10 year period you would save more than $6,000.
Cost of maintenance
Although you will have to replace tyres and brakes just as frequently as any vehicle on the road, the general cost of maintenance and repairs is less than a gas car, as you won’t have repairs associated with the internal combustion engine. These can become very expensive as your car gets older. The largest outlay you are likely to have over time, is a replacement battery pack, however many manufacturers offer a warranty on this.
The cost of EVs is coming down, and although they still might be more expensive to purchase initially than gas vehicles, the daily running costs are substantially less. Even better, the environment won’t be paying the price for the emissions produced by your new car.