With a fully electric car, you’ll never have to worry about fuel costs. But the total cost of ownership can be tricky to figure out. Here are some important things that go into determining how much it will actually cost for your green machine.

The “hidden costs of owning an electric car” is a question that has been asked many times. It’s important to note that the cost of owning an electric car is not just the price of the vehicle, but also includes things like maintenance and fuel.

How much does it really cost to own an electric car?

Electric vehicles were first advertised as luxury vehicles with price tags that were out of reach for the majority of people. However, as public interest in environmentally friendly automobiles grows, more manufacturers are developing affordable electric vehicles. By the end of 2022, the United States may have over 100 distinct electric car models for sale.

These automobiles claim to be environmentally responsible while also saving you money at the petrol station. However, petrol costs aren’t the only expenses to consider. Continue reading to discover about the elements that determine the cost of an electric automobile and if they are more cost effective.

Is the purpose of a loan important?

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What Does an Electric Vehicle Cost?

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According to Kelley Blue Book statistics, the average price of an electric vehicle in November 2021 was over $56,000, up roughly 6.2 percent from the previous year. An electric automobile costs around $10,000 more than the $46,329 industry average.

However, the cost of an electric car will vary depending on the type and model. A 2022 Nissan Leaf, for example, has a starting price of about $28,000. A Tesla Model S, on the other hand, might cost more than $100,000.

In addition to the cost of driving an electric car off the lot, there will be additional expenses to consider during the vehicle’s lifetime, including as charging, maintenance, and insurance.

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1. Costs of Charging Stations

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You’ll pay per kilowatt-hour when you charge your electric car. According to statistics from power marketplace Electric Choice, the national average is roughly When you charge your electric vehicle, you’ll pay per kilowatt-hour. The national average is around $0.12 per kilowatt-hour, according to data from electricity marketplace Electric Choice, though price tends to vary by state. And as a rule of thumb, the faster you charge your vehicle, the more expensive charging will be..12 per kilowatt-hour, however prices vary by state. As a general rule, the quicker you charge your car, the more costly it will be to charge it.

However, the cost of a kilowatt-hour is much more consistent than the cost of gasoline. The national average cost is just a few cents more now than it was a decade ago.

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2. Charging an Electric Vehicle at Home

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The most cost-effective way of charging your electric car is at home. In fact, one Consumer Reports research showed that charging electric cars at home may save people $800 to $1,000 in gasoline expenditures. Furthermore, since each network has its own charges, at-home rates will fluctuate far less than public charging stations.

To charge your electric vehicle at home, you’ll need to build a charging station. Installation fees might range from about $2,500 to $2,500 depending on how your property is wired and what sort of station you want or require. According to Edmunds, an online automobile resource, equipment expenses typically vary from $200 to $1,000, with installation charges ranging from $800 to $1,300 or more. Higher expenses are usually associated with the necessity for extensive electrical work to prepare the charging station.

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3. Routine maintenance

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Compared to gas-powered automobiles, electric vehicles have fewer moving components. One of Tesla’s claims to fame is that its vehicles contain just 17 moving components, as opposed to the 200 or so in a standard automobile. As a consequence, there are fewer components that are susceptible to wear and tear and hence need routine maintenance.

According to Consumer Reports, those who purchase an electric vehicle can expect to save roughly $4,600 in maintenance and repair expenditures over the life of the vehicle. A mile-by-mile examination of maintenance expenses shows that electric cars cost roughly Research shows that individuals who buy an electric vehicle can expect to save about $4,600 in maintenance and repair costs over the life of the car, per data from Consumer Reports. If you take a look at a mile-for-mile breakdown of maintenance costs, electric vehicles typically cost about $0.03 per mile to maintain, compared to $0.06 per mile to maintain a car with an internal combustion engine..03 per mile to maintain, compared to Research shows that individuals who buy an electric vehicle can expect to save about $4,600 in maintenance and repair costs over the life of the car, per data from Consumer Reports. If you take a look at a mile-for-mile breakdown of maintenance costs, electric vehicles typically cost about $0.03 per mile to maintain, compared to $0.06 per mile to maintain a car with an internal combustion engine..06 per mile for a car with an internal combustion engine.

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4. Coverage

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You should also consider the expense of insuring an electric car. In general, electric car owners may pay greater insurance costs than gas-only vehicle owners.

This is partly due to the fact that more costly automobiles are more expensive to insure. Additionally, repairs for electric cars may be more expensive owing to the higher cost of their components and the scarcity of technicians who are familiar with them.

Of course, as electric cars become more common, their sticker price and repair costs will certainly decrease, lowering EV insurance prices as well.

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The Benefits and Drawbacks of Electric Vehicles

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When deciding between an electric car and a regular gas-powered vehicle, consider the advantages and disadvantages.

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Is it cheaper to own an electric car than a gas car?

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While the initial cost of a new electric vehicle may be more than that of a gas-powered vehicle, they are less expensive to run and maintain, and you might save thousands of dollars over the life of the vehicle.

Furthermore, government incentive programs may significantly lower your out-of-pocket expenditures, making an electric vehicle a more affordable alternative for people on a tight budget. Even so, there is some wiggle room when it comes to the price of owning an electric car. For one thing, insurance rates are usually higher. While less maintenance is required in general, certain fixes, like as battery replacement, might be pricey.

You should also consider the cost of charging, particularly if you want to install an at-home charger, which is the most cost-effective choice. According to the US Department of Energy, the average cost of charging an electric car per year is around half that of gas automobiles.

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What are my options for financing an electric vehicle?

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When it comes to buying an electric vehicle, you have the same alternatives as when purchasing a standard automobile. Here are several options for financing an electric vehicle.

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1. Cash

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You may purchase a car in cash if you have sufficient money. This may provide you some negotiating power when it comes to the purchasing price. It also means you won’t have to pay any additional fees or interest on your loan.

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2. Obtaining Funding

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You might also finance your automobile by getting a loan from a bank or another financial organization. You might also look into dealership finance. When you take out an auto loan, you typically pay a down payment and then make monthly payments to pay off the remainder of the vehicle’s cost, often known as the car loan principle. Your lender will charge interest in exchange for enabling you to borrow the cash, which will increase the cost of your loan.

The amount of interest you pay is determined by a variety of criteria, including your credit score, income, and whether or not you have a co-borrower.

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3. Leasing

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When it comes to purchasing an electric vehicle, leasing is another alternative. There are many advantages to leasing an electric car rather to purchasing one outright, including avoiding the significant depreciation associated with electric cars, avoiding battery deterioration, and having access to newer, growing technology when you trade in your car on a regular basis.

When you lease instead of purchase, you’ll miss out on possible federal and state tax advantages, however the leasing firm may pass on some of their savings to you. You also won’t own the automobile if you lease it.

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Using an EV to Refinance Your Car Loan

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You could think about refinancing your car loan in the future. You take out a new loan with better conditions or interest rates and pay off your previous debt when you refinance.

When should you consider refinancing a vehicle, you may question. Refinancing may be useful if your financial condition improves, interest rates fall, or your electric vehicle payments become onerous. However, you must weigh the pros and downsides of refinancing.

On the bright side, you may be able to negotiate more reasonable monthly payments, save money on interest, and free up funds for other financial objectives. On the other side, you could have to deal with prepayment penalties and costs in order to get a new loan.

Here’s a list of questions to ask before refinancing your automobile to assist you make the best financial choice.

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The Conclusion

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While an electric vehicle can save you money at the gas station, there are other fees to consider if you’re thinking about acquiring one. Charging — both at public stations and at home — as well as maintenance and insurance are examples of additional expenditures. Even though their sticker price is now greater, the average cost of an electric automobile in terms of operation and maintenance is lower than that of its gas-powered equivalents.

More information:

MediaFeed.org syndicated this story, which first published on LanternCredit.com.

The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Individual Loan:

This Personal Loan product is operated by SoFi Lending Corp. (“SoFi”) in collaboration with Even Financial Corp. (“Even”). Whether you make a loan enquiry, SoFi will send your information to Even, which will then send it to its network of lenders/partners to see if you qualify for pre-qualified or pre-approved offers. Your credit information will be obtained from a credit reporting agency by the lenders/partners that get your information. Pre-qualified and pre-approved offers from one or more lenders/partners will be given to you here on the Lantern website if you fulfill one or more lender’s and/or partner’s eligibility requirements. More information about Even, the procedure, and its lenders/partners may be found on the loan enquiry form, which can be found on our Personal Loans and Student Loan Refinance pages. Learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy by clicking the links below.

The APR on personal loans offered to Lantern consumers does not exceed 35.99 percent. A $10,000 personal loan with a 36-month term and a 10% interest rate would cost $11,616.12 over the course of the loan’s 36 months.

Refinancing Student Loans:

This Student Loan Refinance program is operated by SoFi Lending Corp. (“SoFi”) in collaboration with Even Financial Corp. (“Even”). Whether you make a loan enquiry, SoFi will send your information to Even, which will then send it to its network of lenders/partners to see if you qualify for pre-qualified or pre-approved offers. Your credit information will be obtained from a credit reporting agency by the lender receiving your information. Pre-qualified and pre-approved offers from one or more lenders/partners will be given to you here on the Lantern website if you fulfill one or more lender’s and/or partner’s eligibility requirements. More information about Even, the procedure, and its lenders/partners may be found on the loan enquiry form, which can be found on our Personal Loans and Student Loan Refinance pages. Learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy by clicking the links below.

Lantern’s student loan refinancing loans are private loans that do not include debt forgiveness or repayment choices accessible under the federal loan program, such as Income Based Repayment, Income Contingent Repayment, or Pay as You Earn (PAYE).

Due to recent legislative developments, all federal student loan payments have been stopped and interest rates on federally owned loans have been forgiven until May 1, 2012. Please carefully evaluate these changes before refinancing federally held loans, since you will no longer be eligible for these or other future federally held loan advantages if you do so.

Refinancing a Car Loan:

Caribou provided the information about auto refinancing loans to this Lantern page. The auto loan refinance information on this Lantern site is indicative and is contingent on you meeting the lender’s requirements, which include meeting the lender’s credit standards, having a loan amount of at least $10,000, and having a vehicle that is no more than 10 years old with no more than 125,000 miles on the odometer. The loan rates and conditions shown on this Lantern site are subject to change after you contact the lender, and may vary depending on your creditworthiness. Additional terms and restrictions may apply, and all terms may differ depending on where you live.

Disclosure of Secured Lending:

Terms and conditions apply, as well as state limits and minimum loan amounts. We recommend that you carefully examine if a secured loan is the correct option for you before applying. If you default on a secured personal loan, you risk losing the assets you pledged as security. Not all borrowers will be eligible for greater loan amounts or the best lending conditions. The capacity to fulfill underwriting standards (including, but not limited to, a respectable credit history, adequate income after monthly costs, and collateral availability) that vary by lender determines loan acceptance and conditions.

Insurance for life:

SoFi Life Insurance Agency, LLC provides insurance information on Lantern. To see our licenses, go here.

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AlertMe

The “electric vehicle total cost of ownership calculator” is a website that allows users to input their monthly expenses and see how much it would cost to own an electric car.

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