Should you buy an EV car now?
Is now the right time to buy an EV car or truck?
https://www.recurrentauto.com
It’s Spring 2023 and there’s a war in Ukraine and Israel and gas prices are soaring. There are still supply chain issues left over from Covid 19. That’s created a shortage of new cars and inflated prices for used cars by almost 37%. But carmakers are pushing their EV models. Does that mean now is the right time to buy an EV car or truck?
Reasons why you should buy an EV now
Prices are falling
Dealers are no longer charging a premium on EV cars
You’ll save on fuel
If you’re a typical driver, you’ll save $1,000 to $2,500 per year on fuel, based on the high gas prices in 2022 that will most likely extend into 2023.
You’ll save on repair and maintenance costs
EV vehicles require far less maintenance than an internal combustion engine (ICE) vehicle.
EV vehicles depreciate less and slower than ICE vehicles
But that’s mostly true for the longest range EV vehicles; not so much for shorter range EV vehicles. Depreciation also depends on brand and how reliable the batteries are as they age.
Reasons not to buy an EV vehicle in 2024
Battery range is still not as advertised
Owners still complain they’re not getting the battery range they were promised, especially in cold weather. Cold weather can reduce battery range by at least 30%
You’re buying obsolete battery technology
Battery technology and manufacturing is changing rapidly. Tesla has had several years experience with batteries but the other carmakers haven’t. They’re buying batteries from battery manufacturers and implementing them into their EV vehicles. However, the batteries and electromotive technologies in 2024 EV vehicles were engineered back in 2020.
We’re already seeing recalls for charging issues and fires, and that’s not even taking into account what will happen to these batteries as they age. You can expect to see more battery issues in the coming years. Most will be covered by the carmaker’s warranty, but they’ll cause disruption in your daily life and the modifications will most likely affect battery range.
EV battery replacement costs are enormous
The biggest mistake EV buyer make when considering the potential cost of battery vehicles is thinking that an EV battery is like a Hybrid battery. It’s not. Hybrid batteries are covered for 8-years or 80,000 miles. Some states have enacted stricter warranty requirement of 10-years or 150,000 miles.
That’s not the case with EV batteries. They’re usually covered for 8 to 10-years or 100,000 miles.
However, while a replacement hybrid battery runs $3,500 to $4,000, an EV battery replacement can run easily run upwards of $8,000 to $17,000 depending on the battery’s range.
EV battery range decreases over time and use
Recent studies show that EV batteries lose about 10% of their capacity during the first five years and a full 20% over the first 10 years.
EV vehicles require an upfront investment in charging equipment
Expect to pay $5,000 – $6700 for a level 1 or level 2 household EV charging station and installation. That price assumes that you don’t have to upgrade the electrical service to your home.
EV insurance is higher
Collisions in EV vehicles most often result in much higher repair costs and that’s why collision coverage for EV vehicle is much higher; more than twice the price for a comparable ICE vehicle. And it’s even higher for luxury brands like Tesla.
Annual insurance costs for Tesla (source: Everything you need to know about insuring an electric vehicle, Jan. 11, 2022 — bankrate.com)
Tesla Model 3 $2,283
Tesla Model S $3,802
Tesla Model X $3,324
Check with your insurance agent BEFORE you buy an EV car
EV tires cost more than regular tires
EV vehicle produce more torque, so the sidewall structure for an EV tire is different. EV vehicle weigh more than a comparable ICE vehicle so they require tires with a higher load rating. On average, expect to pay at least 30% more for tires and expect the wear out faster than tires for an ICE vehicle.
©, 2022 Rick Muscoplat