Pump or plug: what type of car is more affordable?
The presence of electric cars in the automotive industry has been growing substantially over the last few years. Because of the rise in demand for electric vehicles (EVs), some of the world’s top manufacturers in the automotive industry have started to develop their own electric models.
There were around 2.1 million electric vehicles sold globally in 2019. This was an increase in sales from the previous year, which also saw record sales. There is no doubt that the electric vehicle industry will continue to expand in the future as technology progresses.
One of the main reasons people buy EVs is because they’re good for the environment. However, some buyers can’t afford to think about the environment when looking for a car because they want something affordable. Although an electric car may have a higher price, you won’t have any fuel costs. In case you’re wondering what type of car is more affordable in the long run, here is all you need to know.
The operating costs
A clear advantage of electric cars is that they have lower operating costs. In a study conducted by the Transportation Research Institute of the University of Michigan, it was found that the average operating cost for an electric car is around $485 a year. On the other hand, the operating cost for a gas vehicle is estimated at $1,117 per year.
The operating costs may vary depending on the state you live in. If you have a conventional gas-powered car, you simply pay a fee each time you refuel your vehicle at a gas station. The payment process for charging the battery of your electric vehicle is quite different.
In case you decide to purchase an electric car, you’ll get a chance to have a completely different refueling experience. One of the things you should know about electric vehicles is that you can find charging stations anywhere. And while your car is charging, you’ll have time to either sit down at a nearby café for a cup of coffee or run some errands.
When you charge your car’s battery, you won’t have to pay a fee on the spot. But that’s not to say that it won’t cost you anything. Instead, all of the electricity that you use to charge your EV will be added to your home electricity bill. Although the price of electricity varies from state to state, the good news is that it has been dropping in recent years. It’s expected that the prices will continue to decrease over time.
The sale price
Most car shoppers base their decision on the sale price of the vehicle they’re interested in, regardless of whether it’s new or used. At the moment, the average cost of EVs is higher than what you would pay for a gas-powered alternative.
The average price of an electric car is estimated to be at $55,000. On the other hand, the average cost of a gas-powered four-door sedan is currently around $35,000. This is where gas-powered vehicles still hold an advantage. Since the sale price is often lower for gasoline-powered cars, shoppers are more likely to purchase them.
It’s worth noting that there are some EV models that currently have a sale price of less than $35,000. These vehicles include the Chevy Bolt and the Kia Soul. Shoppers should understand that the price of the average electric vehicle is going to reduce dramatically in the future.
According to a study recently conducted at Carnegie Mellon University in Pittsburgh, there’s a chance that EVs will become cheaper than gas cars by 2023. The researchers that worked on this study created a model that calculated the costs of each EV component and predicted how it would change in the future. The researchers are confident that the model predicts that electric vehicles will surely be the cheaper option by 2025.
Even though most EVs available on the market are currently sedans, it’s only a matter of time before other types of electrically-powered vehicles start getting developed and sold. Several major manufacturers have already committed to making trucks that are expected to have a huge impact on the vehicle industry.
As more EVs get manufactured, the sale price will go down. This is what the electric giant Tesla hopes to accomplish. Their goal is to constantly work on creating cheaper EV models until they’re affordable for everyone.
Maintenance costs
One of the main advantages of EVs is that they’re composed of fewer moving parts. On top of that, there is no internal combustion happening because the vehicle is electrically powered. Because of this, EVs experience less corrosion than their gas car counterparts. All of this means that the maintenance costs for electric cars are quite low.
Exactly how much you’ll have to pay for maintenance on an annual basis depends on the state you live in. Nevertheless, it’s a reasonable assumption to say that you’ll pay anywhere between $200 and $400 for maintenance per year. On the other hand, owners of gasoline-powered vehicles pay up to $1,600 in maintenance costs each year.
The great thing about EVs is that you won’t have to worry about the cost of replacing the battery in case it stops working. When you buy an electric car, you’ll most likely get a warranty that will cover your battery for ten years.
Bottom line
Despite the operating costs for electric vehicles being lower on an annual basis, many people don’t look past the sale price when buying a new car. While this may be the situation currently, it is expected that electric cars will become cheaper than their gas-powered equivalents within only a few years.
The EV industry is steadily growing and expanding, and as it reaches new heights it will make it possible for manufacturers to reduce the prices for their electric vehicles. It’s expected that ditching gas cars for EVs is one of the major changes that’ll occur in the near future, which will be of great importance to the environment and may play a vital part in stopping the acceleration of climate change.
