5 hidden costs of owning an electric car to keep in mind
Before jumping on the electric car buying process, you must know about the costs of owning an electric car. You may be aware of a few of the expenses, whereas others may be shocking to you. Continue reading to know the hidden costs of owning an electric car.
This guide covers the overall expenses of having an electric car, including battery replacement, insurance premium, resale value, EV car repair, charging stations, etc. In the end, we will provide a summary of whether you’re going to save money by owning an electric car or not.
Electric cars come with lesser moving parts, which are easier to maintain, automatically decreasing maintenance costs. EV cars don’t need oil changes, engine tune-ups, and engine repairs like standard cars. However, EV car owners still have to maintain the car parts such as
- Air filters
- Brake pads
- Wiper blades
- Power steering
- Suspension checks
Compared to traditional cars, EV vehicles come with higher insurance premiums. Electric cars are built with the latest technologies and sophisticated electric motor parts. And these parts tend to be costlier to repair or replace. Insurance agencies know that the EV spare parts aren’t easy to get and even cost more to work with. Besides, the premium will depend on the model of the car, the insurance provider, and the type of coverage you choose.
EV cars are just electronic components, similar to Apple products and Alexa. So, it prevents the owners from making repairs independently by going to an auto shop. In short, you would be unable to get your vehicle repaired by an affordable auto repair service provider. Instead, it will be made only by manufacturer-approved dealers.
Since EV cars mainly depend on electric batteries, you need to know how much a car battery costs. On average, the cost to replace a car battery is about $100 to $300, and this will be a bit more expensive for e-cars, as it comes with high-capacity lithium-ion batteries. The lifespan of a traditional vehicle battery is between three to seven years. Whereas EV batteries can last for at least 8 years without the need for a replacement. But in both cars, there will be a reduction in the power of batteries as time passes.
Purchase price vs. resale value
The price of EVs can be pretty high compared to non-electric vehicles. But, most EV cars are eligible for tax credits, so the overall expense will be slightly reduced. However, compared to gasoline-fueled vehicles, the initial purchase price of EV cars can be a bit steep, but when looking at the future benefit of ownership – it’s worthwhile.
Currently, the resale value of EV cars is 40% of the purchase price, but the worth of conventional cars in the secondhand market is 50% to 70%.
These are the top 5 hidden costs you may encounter by owning an electric car. If you’re planning to buy an electric car, consider all the ways to preplan your budget, save your time and money, and help the environment be green.
Where is it more convenient to charge an electric car?
When deciding to buy an electric car, many people think of two questions, i.e., how much does a car battery cost and how much does it cost to charge an electric car. We have explained the cost of a car battery and its lifespan in the above section. Now, we are going to talk about charging EV cars.
Charging at home
One of the hidden costs of owning an electric car is – there is no need to take frequent trips to gas stations. You can charge your car overnight at home by installing a charging station. This can save your time and money spent in public charging stations. The price to install a charging station at home can vary depending on the station type, i.e., level 1 or level 2. According to experts, a level 1 charging station will cost around $300 to $600, and level 2 will be $500 to $2,200.
Next to installation, you will also need to consider the price of electricity. Depending upon the usage of your vehicle, the time required for charging will vary. Regularly charging at home will add around $40-$80 to your monthly electricity bill.
Public charging stations
When it comes to considering the hidden cost of owning an electric car, the cost of charging at a public charging station should also be taken into account. Usually, the price is quoted by the kilowatt per hour (kwh). In some charging stations, they set charging prices on an hourly basis. So based on your charging time, the prices can vary. Further, you can also find free charging stations in shopping malls and parking lots.
By using electricity to charge your car, you are saving fuel costs. But the time required to charge an electric car entirely is drastic. Depending on the size of the EV car battery and the speed of the charging point, it may take an average of as little as 1 hour to 12 hours to get it fully charged.
That’s why it is advised for all-electric car owners to have their charging stations at home. So that they can charge their cars in their comfort overnight, and they can use public charging stations only to top up the charge.
Workplace charging stations
If you don’t have a charging station at home or just need to top up the battery during the day, you can use workplace charging. As many people have started using EV cars, employers install separate charging stations for their employees.
Long-distance charging stations
While going for long-distance travel, you may come across a situation where you have run low on battery and need an emergency charge. For this purpose, you can use rapid power chargers (43-350kW). You can find rapid charging stations in motorway services and supermarket car parks.
Do you save money with an electric car?
You might be surprised to see the hidden costs of owning an electric car. Why do people feel they save money with electric cars? Compared with classic cars, there are more ways to save.
For example, there is no need to fill up the gas tank, saving hundreds to thousands when the fuel prices peak. Furthermore, far less maintenance is required, as it doesn’t contain more spare parts. Most importantly, you will be exempted from tax.
These factors strongly prove that you can save money by driving EV cars. Apart from being pocket-friendly, these cars are eco-friendly – that’s a great start to begin with EV cars!
We hope you found this article helpful for you in making an informed decision on owning an electric car.