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.
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.
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What Does an Electric Vehicle Cost?
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
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
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
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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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
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?
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?
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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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
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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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
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.
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.
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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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