The electric vehicle revolution is here and enthusiastic drivers are hoping to break their dependence on expensive and unpredictable gas prices. The chance of running a car on electricity, possibly powered by home solar panels, doesn’t seem too real. So what’s the catch?
Electric cars can bring significant cost savings and eco-friendly breakthroughs in the long run, but they can also come with a few extra costs during the teething season. If you’re prepping for a new electric car, here are the hidden costs of owning an electric car you should know about.
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1. Higher purchase price
Generally speaking, electric cars are more expensive than petrol cars sold at dealerships. Expect to pay about $10,000 more for an electric vehicle on average, according to the Kelley Blue Book. However, in some cases, that price difference can be even greater. Among other reasons, this is because electric vehicles are produced in lower quality than other vehicle types, allowing sellers to charge a premium for the “prestige” of owning a new electric vehicle (EV). .
Another driver of rising electric vehicle prices is the cost of the rare earth minerals (lithium, cobalt, manganese, nickel and graphite) used to make EV batteries, most of which are sourced outside the United States. Cobalt is perhaps not as essential to electric vehicle batteries as other minerals, and the US government is aiming to eliminate cobalt from electric vehicle batteries by 2030. Some automakers are adopting cobalt-free batteries, which could ultimately bring down the cost of electric vehicles. Until electric vehicles become widespread, expect some shocks when comparing prices to conventional vehicles.
2. Registration fee
In some states, the gas tax that is applied at the pump when refueling a gasoline vehicle is used to subsidize the cost of road repairs. Because electric vehicles don’t use gas, the state applies an additional registration fee of about $50 to $200 for EVs. Georgia now has some states with the highest EV fees for her, but check out our full list of states and electric vehicle registration fees for more information.
3. Premium
Most auto insurance companies charge high prices for electric vehicles because EVs are expensive to repair or replace and few repair shops have EV-trained staff. As a result, insurance premiums for electric vehicles are 5-20% higher than those for gasoline vehicles.
4. Load charge
Electric vehicles are undoubtedly cheaper to charge than gas, but the real savings are much lower if you charge on the street instead of at home. Public charging facilities vary widely in price, some require payment for the time spent charging, while others charge according to the kWh of electricity used. A DC fast charger can add 100 miles of range in 10 minutes, but it’s also the most expensive public charging option. However, convenience and the time spent charging the vehicle are also factors to consider.
5. Home charging
Although it is the cheapest charging method, charging an electric vehicle at home has its drawbacks. It’s probably cheaper to charge your EV with a Level 1 charger using a standard 120 volt outlet, but this type of charging can take 24-36 hours (or longer in colder climates), so This option is impractical if you drive the car every day. ). This means that daily commuters will need to have the more expensive Level 2 electric vehicle chargers professionally installed for convenient overnight charging.
Electric vehicle chargers typically cost around $2500 for both the charger and installation, and an EV charger has a lifespan of around 10 years. If you need to upgrade your home electronics to accommodate a Level 2 charger, expect to pay a lot more.
6. Battery replacement
Unlike standard car batteries, electric car batteries don’t come cheap. They’re good for 100,000 miles, but come with a hefty price tag of $10,000 to $20,000, so expect to reinvest some of your gas savings in buying new batteries in the future EV battery technology is expected to improve over the next few years, and their prices will likely come down.
Under certain conditions, the battery in an electric vehicle can deteriorate prematurely. For example, using ultra-fast DC charging will shorten battery life. The maker of his Kia says that doing fast charging will reduce his battery life by 10% in 8 years.
7. Depreciation
Most people know that a new car loses its value the moment you drive it. When it comes to electric vehicles, those losses are amplified. The reasons for EV depreciation are manifold.
- New electric vehicles are eligible for a $7,500 tax credit (with certain limits). A car’s value can plummet by as much as 60% when the tax credit expires, say at the end of a three-year lease.
- EVs lose up to 20% of their maximum range after 5 years.
- Electric vehicle technology is still new and evolving rapidly. Like the latest smartphones and his three-year-old model, the new EV model will be far more attractive to shoppers than the older model, especially as battery technology improves.
8. Range loss
“Range” and “loss” aren’t two words that people hesitant about buying an electric vehicle typically want to see together, but they are the realities of battery-powered travel. As mentioned above, EV batteries degrade over time, so expect a fully charged battery to travel less range as the car ages.
Additionally, cold weather affects the performance of EV batteries. An AAA study quantified the temperature-related EV range loss to be as high as 12% at 20 degrees Fahrenheit compared to 75 degrees Fahrenheit.
9. Repair fee
With fewer mechanics trained to fix electric vehicles and fewer parts available, maintenance costs for electric vehicles can be considerably higher than those for most gasoline vehicles.
A recent insurance claim analysis by CCC Intelligent Solutions Inc. revealed that owners of luxury brand mid-size electric SUVs can expect to pay more than 50% more for repairs than gas-powered vehicles. However, we expect these costs to decline over time.
10. Charging time
For many people who rely on their car to commute, the time they spend charging is less than the time they spend working. Time is money and charging a vehicle over minutes to hours can significantly reduce productivity when overnight charging is not enough.
11. Addons
Much like buying a new construction home, new EVs come with optional add-ons. Tesla boasts of his self-driving option, which will cost an additional $15,000 around 2022, while the company’s acceleration boost feature will cost around $2,000. Combined with these extra features, unlocking the full package of Tesla electric car add-ons can cost upwards of $20,000.
final thoughts
When new technology first hits the market, prices tend to go higher before settling. (Remember that $5,000 plasma TV?) Electric cars are greener and ultimately easier on your wallet than fossil fuel-powered cars. .
Additionally, if we all end up driving electric cars at some point, it may be a question of when rather than if to buy one. For homeowners who can have a Level 2 charger in their garage, it might make more sense to charge sooner or later. But affordable access to his EV charging stations will be a deciding factor for residents of major cities. Either way, before buying or leasing an electric vehicle, it’s important to consider the true cost of owning an electric vehicle.
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