Thinking of Getting an Electric Vehicle? Every Financial Information You Must Consider Before Getting One

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admin August 16, 2023
Updated 2023/08/29 at 8:43 AM

Living that beautiful life of luxury is everyone’s dream and having a luxury car to top it up is the cherry on top. Nice.

You might be considering purchasing an electric vehicle for yourself given that they are becoming more and more popular In the market each year and have advantages for your pocket and the air we breathe in. Well, you might have to consider some things first before you make that payment for your best electric car. Yeah, I know the car is very beautiful and you can’t wait to get into the steering wheel and zoom off. But you have to wait for a little while and read through to discover everything you must tick right first before completing the transaction and going home with your electric vehicle.

Come on, let’s get digging.

Financial Information you must consider before you buy an electric car

I believe you have already planned on getting a new car soon because if that’s not the case, almost all of your potential savings will be consumed by unnecessarily paying thousands of dollars for a brand-new car.

However, there are many benefits to going electric if you need to replace your car soon. Along with the added convenience.

The two most important factors you should likely consider while looking for a new electric vehicle (EV) are:

  • The cost of the vehicle
  • How far an EV can go on a single charge

The Cost of the Vehicle 

The biggest financial challenge you will encounter with electric cars is purchasing the vehicle. An important financial barrier is that EVs are more expensive than gasoline-powered vehicles. However, all of your recurring expenses will be considerably cheaper once you have the car. That is to say that the powering of the car is where the biggest savings are found. Gasoline refueling is much more expensive despite an increase in energy costs. The U.S. Department of Energy has previously published data that shows that the average cost of gasoline is more than twice as high as the cost of electricity.

How far an EV can go on a single charge?

In buying a new electric car, the shortest electric range you would get is that offered by The Mazda MX-30 which goes 100 miles and there’s no denying that it’s pretty bad. There are currently more electric vehicles with a range of over 200 miles which is a good sign that the era of low-range EVs is coming to an end.

Price and range don’t necessarily go hand in hand although vehicles with extremely limited ranges tend to be more affordable. For instance, The 2023 Chevy Bolt which has a range of 259 miles has its price reduced to $26,595 and is currently the least expensive EV in the United States. In contrast, The Audi e-Tron from 2022 has a 222-mile range with a starting price of $60,900.

However, even if a range of 200 miles plus is now the standard, some EVs can go much farther. The Lucid Air Dream Edition has a range of 520 miles compared to the Tesla Model S’s 405 miles. Not only that, The Mercedes EQXX Vision concept set a record by driving 747 kilometers on a single charge.

To help you decide further whether it’s worthwhile, there are a few additional facts concerning electric vehicles that you might not be aware of.

Using A Home Charger? How much to purchase a 240V Charger?

In addition to saving money on gas, many people opt to acquire an electric car for the ease of home charging. But without a level 2 (240V) charging station, it isn’t worthwhile, though.

The Charging Levels and Cost of Electricity 

There are levels to charging your electric vehicle and you need to be aware of the various charging levels for EVs and why it might not be to your advantage for you to charge at home.

Level One: The standard 120V home outlet.

This is the most inefficient and very slow charging method. For you to fully charge your EV while using a standard 120V outlet will likely take the entire day. You won’t get a return on your investment when you consider how much electricity that will cost.

Although charging at home is normally cheaper than public charging some public charging units are free.

Honestly, who has that amount of time to let a car charger for a full 24 hours? Undoubtedly, it is not practical.

Level Two: The 240V charging level.

This has a much faster-charging rate than level one. You might want to quickly rush on this one. Unfortunately, even though some people might be able to pull this off, it might not work for you. Why? It is because you’ll have to spend a few hundred dollars, roughly about $200 installing the 240V charging station that you will require while comparing it to the $500 wall stations usually charge.

Another thing you should consider apart from the cost of the 240V charging station is the cost of installation. Yeah right. Since a 120V outlet is a standard in the United States, very few residences have 240V outlets. So to be able to connect the charging station, you must hire an electrician to install the 240V outlet. This part may cost you many hundred dollars more.

Level Three: The DC fast charging level.

If you want a faster car charger, this is your best bet. However, this is mainly accessible at public charging stations. It’s a good idea to research the availability of public charging stations in your area before you get yourself an electric vehicle. You do not want to be stranded on your way home simply because you ran out of battery. Most EV charging stations have a certain amount of hours that you are permitted to plug in. You could just get a 1 – 2 hours charge and that’s it.

It’s common to see Level 2 charging stations but some charging stations are not fast chargers. The thing is you might not even know these things. Well, they charge more quickly than using a standard 120V outlet at home to fully charge your vehicle but it might still take 5 or more hours depending on your vehicle.

Besides, some chargers will continue to bill you if you stay plugged in for too long, after your battery is full or after the allotted duration given. As a result, you are paying to park in the space and be plugged in in addition to the electricity you have consumed.

Due to the wide range of alternatives available on the market, charger prices fluctuate. A car charger costs a few hundred dollars, though you will also need to account for installation charges. For instance, The 12 kW Chargepoint Home Flex, which has very smart features, is $700 while Tesla’s 11.5 kW home charger is $400.

Also, depending on the time of day, electricity costs can change. Charges on weekday afternoons and evenings are typically much more expensive than those made overnight or over the weekend. You can get further explanations from your neighborhood utility company.

Electric Vehicle Incentives 

Electric car buyers can receive a $7,500 tax credit from the United States federal government. But only brand-new, all-electric vehicles are eligible for the entire sum. PHEVs, or plug-in hybrid electric vehicles, are also qualified for the credit, although the amount they can receive varies depending on how big their batteries are. State and local governments also provide credits and incentives.

It is important to note that not all EVs qualify for the tax credit, do well to consult a tax expert to ensure you will qualify for the credit before making an EV purchase.

Cost of Maintenance

In general, having an electric car is less expensive than one that runs on gas. Apart from you not spending money on gas, there are almost no fluid changes required, and, also the battery and motor of an EV may have a lifespan that exceeds that of the vehicle. You also pay less for the maintenance of your vehicle. In the event of the battery being replaced, which is quite unlikely it can run anywhere from $5,000 to $16,000, not including labor. To avoid having to pay more than you would for a gas car, you must be careful about how and where you charge your electric car.

Cost of Insuring an Electric Vehicle 

Insuring an EV costs more than a conventional vehicle and this has nothing to do with the car’s safety. The reason is actually that EVs are more expensive than gas-powered vehicles.

An electric vehicle will cost you 23 percent more on average to insure than a gas vehicle.

Generally speaking, the repair costs for more expensive vehicles are usually higher, and the cost of replacing only a damaged battery pack of an electric car is relatively high. This is taken into account by most insurance companies as they have to pay for this expensive repair if an accident results in its damage.

Lastly, no matter what kind of vehicle you drive, make sure to compare insurance prices and look out for the best EV insurance options.

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