While purchasing a vehicle, the economical aspects tends to be one of the greatest concerns. This is especially true when it comes to a cost analysis of electric vehicles (EVs) and internal combustion engine vehicles. This article will explore and analyze several cost factors in order to support you on your decision on which of the options is more financially sound in the long run.
1. Cost of Acquisition
Electric Cars: It is common for prospective buyers of electric cars to be discouraged by the premium prices of electric cars than their fossil powered cars. But the government has several schemes that can mitigate the effects of high costs. For instance, the United States offers tax credits worth between $2500 to $7500 depending on how large the batteries of the vehicle in question are.
Gas Cars: Most gasoline powered cars are sold at lower prices, thus easy for meticulous buyers. Still, one may sacrifice the initial lower pricing as this can translate to increased costs for operational purposes in the long term.
2. Costs of Fuels
Electric Cars: The cost of charging an EV is normally below the cost of running a gas vehicle. The cost of electricity in the United States stands at $0.13 per kWh on average. For example, assume an extended range electric vehicle has a 75 kWh battery, a range of 300 miles, and it costs approximately $10 to charge it up fully which roughly translates to around 3.3 cents per mile.
Gas Cars: There are variations to gas prices, however the average cost is likely to be $3.00 per gallon. A gas vehicle which consumes gas at 25 miles to the gallon would incur a cost of approximately $36 to drive 300 miles. This shows that as time goes by, the cost of an EV remains lower than that of fueling a gas vehicle.
3. Maintenance Costs
Electric Cars: An Electric Vehicle, or EV, has fewer moving parts compared to conventional vehicles hence less maintenance is required. For instance, there is usually less braking wear since regenerative brakes are used in the majority of the cases. So an owner, of electric vehicles need not spend more than 30% of the vehicle costs on maintenance as compared to gas vehicles.
Gas Cars: Conventional or Internal combustion engine vehicles come in different types, and these vehicles also have limitations and benefits. For example, internal combustion engines need to have regular vehicle servicing which involves changing oil, repairing the exhaust system and replacing the brakes more often. Such maintenance requirements cannot be ignored as they have an impact on the overall ownership costs of the vehicle after prolong period.
4. Depreciation
Electric Cars: In the past, the owner of the electric vehicle had to face gauntlet of challenges related to the technology of the electric vehicles that have changed too quickly. Nevertheless, the decline is reversing because this technology is widely accepted, and more people have started using electric vehicles, with some models performing pretty well retaining the value better than before.
Gas Cars: Cars powered by gasoline are equipped with technology that allows for depreciation even when they are not being used. Their depreciation cycle is especially applicable to these vehicles based on their make and model. Most of the time in regions, where gasoline powered vehicles are still preferred.
5. Insurance Costs
Electric Cars: As a result, insurance costs are usually higher than normal since repairs and spare parts replacement are quite expensive. Nevertheless, some companies provide such benefits for owners of electric cars, making such insurance more affordable for them.
Gas Cars: Carriers allow and results in what can be referred to as predictable risk assessment in the case of providing cover for gases vehicles. However this may not be the case for the particular model in question, as the age of the vehicle and the history of the driver may cause a difference in the insurance cost rates. In most cases, they are likely to have lower rates than in most electric variants.
6. Long-Term Ownership Costs
To illustrate the overall cost comparison, let’s assume the typical duration of ownership for both vehicles is five years:
Electric Vehicle TCO:
Retail Price: $35,000 (post-incentives, customers’ costs)
Fuel Expenses: $1,200 (performed charging expenses)
Repairs and Servicing: $1,500
Cover: $1,800
Grand Total: $39,500
Gas Vehicle TCO:
Street Price: $28,000
Petrol Expenses: $6,000 (cost of petrol)
Repair and Maintenance: $3,000
Coverage: $1,500
Total: $38,500
Conclusion
It is true that electric cars are often more expensive to buy compared to hybrid temporal machinery i.e. inner combustion engine cars. However, electric vehicles fuel and maintenance costs are low, and hence in the long run they may save the user a lot of cash. Lower purchase price and a more stable depreciation model are common features associated with gasoline powered cars. However, running costs are usually substantially higher than that of electric and hybrid cars. In conclusion, the best alternative depends on how one drives, the available resources, and the perception they have on the need for technological advancement over environmental conservation. An assessment of these aspects will assist you in making the appropriate choice.
