When it comes to the future of the automotive industry all signs are pointing towards electric. Unless of course hovercrafts become unexpectedly popular, in which case... we are all in. For now, we're diving into the world of HEVs and EVs to help our customers navigate this shift.
One of the most common questions that comes up during these types of discussions is – will buying electric save me money in the long run?
See, with the rising cost of petrol and the 'low-by-comparison' cost of charging your EV, making the switch is beginning to seem more and more like a viable option for everyday buyers. Despite being just as expensive as its petrol counterpart and in some cases, even more costly, the PHEV, HEV and EV offer the opportunity to save money in the long term. Not to mention, more EV's are beginning to be filtered through the used car market, making them far more economically accessible.
Charging your EV in Australia costs $0.30-$0.60 per kWh, which adds up to $11.50-$23 for a hatch model. In the case of larger EVs, this can increase to around $22-$45 per charge.
The price of electric vehicles and subsequently, their lithium batteries, are projected to decrease in price in the coming years. Also, as there are less working parts in an EV, even the repair costs are less inclined to break the bank. The battery itself is said to have a lifespan of up to 10 years.
Based on these financial facts, it would certainly seem that choosing electric is a straightforward decision. Unfortunately, things are not quite so simple. There are a number of factors that influence the running costs, such as your choice of vehicle, driving habits and location. Not to mention those who live outside of city centres may need to install an 'at home' charging port, which increases the upfront costs. All of which could push your overarching costs to be on par with a regular vehicle
As a general statement we would agree that buying electric will save you money in the long term. However, whether this holds true for your individual situation and needs, we cannot say. Wondering where to go from here? We suggest researching the number of charging ports available near you, your EV of choice and its cost per km.
Outside of these financial considerations, there is also the underlying motivator - buying electric is part of a positive shift towards reducing our environmental impact. PHEVs, HEVs and EVs may be on the fence when it comes to expenses, but we would argue that it's unlikely to be that way for long.