Will an Electric Vehicle Save You Money In the Long Run?

All the buzz about electric cars has a lot of people wondering if they are worth the money. Electric vehicles are designed to run on an electric charge, which means you do not have to worry about paying for gas. Of course, it is not free to drive an electric vehicle. Here are some costs that you need to consider.

The Cost of Fueling an Electric Vehicle

If you are not paying for gas can you save money with an electric vehicle? Yes, but electricity is not free. On average, according to the EPA, you can expect to pay the equivalent of $1 per gallon of gas to charge your electric vehicle. That seems like that would be a lot of money to save on fuel costs.

You can check fuel savings off as something you will save money on with an electric vehicle. Over the years the savings will be significant. On average an American driver will spend over $1,700 a year on fuel costs, with an electric vehicle you will pay a fraction of that cost.

The News Is Not All Good

Electric vehicles have been around for a while. However, charging stations have not quite kept up with their popularity. Depending on where you live, it may be difficult to find a charging station. Installing a charging station in your home can be expensive, which of course cuts into the amount of money you can save by owning an electric vehicle.

Additionally, there have been some reports recently about the cost of replacing batteries in some brands of electric vehicles. Revenue for U.S. motor vehicle parts suppliers was $1 trillion, according to IBIS, which includes the cost of replacement parts for electric vehicles.

Batteries for these vehicles can cost more than $20,000. If you do the math and include the risk of having to pay for a replacement battery after the warranty period, it may be difficult to see how you can save money on fuel when all that savings will have to go to the cost of a replacement battery.

While most people have had very good experiences with battery life, there are some people that have had terrible experiences with battery life and have had to fork over 20K plus to get a new one. In the United States, about four out of five vehicle repairs are directly related to durability issues. Because electric vehicles are still relatively new long-term studies have not been performed to determine which vehicles are durable and which are not. It may be a risk to jump right in and buy an electric vehicle with the plan of saving money on gas only to find that you have to pay for the cost of a battery in a few years.

Other Costs to Consider

Another cost that can dent your overall money savings is the cost of other repairs. You may only be able to go back to the dealership to get repairs done on your new electric vehicle because it can be difficult to find an independently owned-auto repair shop that has the expertise to manage the repairs.

Historically, dealerships are more expensive for repairs than going to your local privately-owned auto repair shop. It may cost you more to maintain your electric vehicle which can put also put a dent in your money savings.

Overall, Is It Worth Owning an Electric Vehicle?

Electric vehicles can be a way to save money on fuel costs. They are better for the environment, and as time moves forward they are becoming much more reliable with longer ranges. However, there are some downsides to jumping on the bandwagon and buying an electric vehicle.

Choose your options carefully and do some research before you decide if this is a money-saving option that will fit your needs. Learn more about electric vehicles and the potential for saving money.

Leave a Comment