Cost Of Owning An Electric Car

Although it may be simple enough to calculate the Manufacturer Suggested Retail Price (MSRP) for an automobile, esimating the ongoing costs of ownership from month to month, takes a little more calculation depends on a number of factors.  For the gasoline or diesel vehicles, many of these factor have been studied, and are understood by the general public.  The costs for owning and maintaining electric cars, are a bit fuzzy, at least in the minds of the customers I service.

So what exactly are the ownership costs associated with an electric car?

Depreciation Costs

Electric vehicles have not been on the market for many years. Therefore, there are not enough used ones still in circulation to determine what a robust one operates and looks like.

Although when gas prices are high, conventional electric/hybrid vehicles perform well, the range of these types of vehicles begins to diminish. This is especially true when newer models enter the market whose range is longer than older models.

There is another factor to consider as well. What will happen to these used vehicles once customers realize that these vehicles lose at least 10 percent of their range after several years?

Fuel Costs

There is no doubt that the lower the cost of fuel is, the greater the advantage electric vehicles have over time. This advantage can grow even larger when gas prices begin to soar.

However, the real cost of a kWh can vary greatly around the country. In fact, the costs can differ a lot within the same region. These price differences are based on:

• Utility rate plans
• Home solar
• Time of use programs
• Seasons
• Tiers

So, what does this mean for electric vehicle owners? It can be challenging to try and forecast the actual fuel costs.

Car Insurance Rates

There are many reputable and well-known insurance companies that offer electric vehicle owners discounts. Keep in mind though, it is becoming common practice for insurance companies to charge higher rates for vehicles that have more advanced technology.

Charging Equipment For The Home

Some electric vehicle owners do not consider the purchase of charging equipment when calculating the costs of their electric vehicle. It can cost anywhere from $400 to $1500 to buy a charging station for your home.

This upfront cost includes the installation of a 240-volt charging box that is mounted on the wall. This charging box funnels electricity to the vehicle.

Maintenance

Another advantage that electric vehicle owners can enjoy is that these vehicles do not require the same maintenance for their exhaust systems like conventional vehicles. So, you do not have to worry about oil changes.

Research has shown that this means that maintenance costs decrease around 35 percent over a period of time. This equates to almost 3 cents a mile when compared to a traditional vehicle that has a maintenance cost of around 6 cents a mile.

Electric vehicles will continue to gain in popularity as consumers try to reduce their carbon footprint and technology continues to advance. By keeping these cost factors in mind, you will be able to make a sound buying decision.