Electric cars are emerging as one of the hottest trends of 2018. In a recent AAA survey, 20% of Americans revealed they would consider choosing an electric vehicle when the time came to purchase a new car. And it’s easy to see why they would as they are considerably cheaper to run, are environmentally friendly and manufacturers are working hard to ensure the performance of each new electric car is bigger and better than the last.
Payback period
The U.S. Department of Energy estimates that drivers who drive 15,000 miles annually in an electric car would have to pay $500 a year to charge their vehicle. Whereas, a typical gasoline car which does 30 miles to the gallon, would cost the same driver $1,830 per year, meaning you’d save $110.83 each month in an electric vehicle, if fuel prices and electric charging costs remained stagnant. While, you might have to shell out slightly more to get your hands on an electric set of wheels, the savings soon stack up.
Maintenance and insurance
Insuring an electric car can be more expensive than insuring a gasoline vehicle, so it’s vital you shop around and look for the best deal, but the good news is that maintenance costs are significantly lower, so most drivers are still better off switching to electric. Vehicles which run on gasoline have multiple parts which require regular maintenance, such as oil changes, new spark plugs and more frequent brake pad replacements. Green Transportation states that individuals with gasoline cars spend $180 a year just on oil changes, therefore, you’d automatically save yourself this figure each year, just by owning an electric vehicle.
Finding the funds
One of the least costly electric cars is the Hyundai Ioniq which has an MSRP of $29,500. Due to initial financial outlay required with an electric vehicle, it’s recommended you consider various ways of financing your electric car before proceeding with your purchase. Buying outright is ideal for those who have significant savings or are able to borrow the funds from a respectable lender. Alternatively, you could use your home to release some cash by cash-out refinancing it and using the funds to purchase an EV, or, you could choose to lease or finance a car and pay a set monthly amount for it.
Buying used
Not sure that an electric car is for you? Don’t feel comfortable spending in excess of $30,000 on a new vehicle? The good news is that the used electric vehicle market offers some outstanding deals. Digital Trends reports that dealers usually price EVs to sell quickly and auctions often sell them off for between $6,000 and $8,000. What’s even better is that owners usually take considerable care of their electric vehicle, so you can be sure you’re getting yourself a great set of wheels when you buy used.
An increasing number of Americans are keen to get hold of an electric car due to the multiple benefits that come with owning one. While the initial cost may be higher than that of a standard gasoline car, the savings accumulated significantly outweigh the expense. There are numerous ways you can finance an EV and buying second hand can be an cost-effective way of securing your first electric powered vehicle.
