Common But Unexpected Expenses Of Owning An Electric Car
You've probably noticed how the gas pump prices just keep climbing, and naturally, you're wondering if an electric car might be a better choice for you.
Right now, Tesla stands as the dominant player in the American car market for electric vehicles, accounting for nearly 70% of EV sales in the United States during 2021. However, Nissan, Ford, and GM are revving up their electric lineups and giving Tesla a run for its money.
Before you decide to make the switch to an electric vehicle, there are some upfront and ongoing costs to wrap your head around first. Read on to learn more about the unexpected costs that come with owning an electric vehicle.
Increased Registration Fees
States often impose a tax on gasoline to fund road repairs and other necessary expenses related to the maintenance of the roads. However, electric vehicles do not require gasoline, so their owners may not contribute their fair share towards infrastructure taxes.
Certain states have implemented an additional registration fee specifically for electric vehicles to compensate for this revenue loss. The amount of this fee varies from state to state, typically ranging from $50 to $200 per year.
Higher Upfront Purchase Cost
Before receiving the keys (or key fob) for an electric vehicle, you might see that certain EVs carry a higher price tag compared to their internal-combustion-engine equivalents. As indicated by Kelley Blue Book, the average cost of an EV stood at $56,437 in November 2021, roughly $10,000 above the industry average of $46,329, encompassing both gas and electric vehicles. The elevated pricing can be caused by factors such as heightened demand and the additional technology integrated into EVs.
Rising Premiums
Insurance premiums for electric vehicles (EVs) tend to be higher compared to traditional gas-powered vehicles, with an average increase of approximately 25%. This is primarily due to the higher repair and replacement costs associated with EVs.
It's important to research different car insurance options in order to secure the most favorable deal for EV insurance.
Charging On The Go
After purchasing an electric vehicle and charging it at home, it's possible that your electric bill may increase. However, the real surprise may come when you attempt to charge your vehicle on the road. The prices for public charging stations can vary greatly depending on the provider.
Different states have different regulations regarding pricing. Some states allow providers to charge based on the amount of electricity used, while others only permit charging on a per-minute basis.
Range Loss
Based on Kelley Blue Book's research, it is evident that all vehicles experience a decrease in range during cold weather. However, this issue is particularly worrisome for electric vehicle owners. Unlike traditional vehicles, recharging an EV takes longer, and finding public charging stations can be challenging in various regions of the country.
This scarcity forces EV owners to carefully plan their longer journeys around recharging points and acknowledge the need for more frequent stops when temperatures drop.
Unlocking Add-Ons
EV manufacturers such as Tesla often boast about the impressive features of their vehicles, such as self-driving capabilities and acceleration boosts. However, it is important to note that these add-ons come with a price tag. In order to access these electronic features and maximize the potential of their vehicles, drivers may have to pay several thousand dollars.
If you are considering whether Teslas are worth the investment considering the additional cost to unlock features, it may be beneficial to explore other EV models which may offer these locked Tesla features as standard on their models.
Temperature Variation
Climates characterized by significant fluctuations between cold and hot temperatures may hinder your battery's capacity to charge and discharge efficiently.
This could result in increased expenses for charging your electric vehicle in order to adapt to the changing climate.
Charging Time
Consider the value of time when contemplating the purchase of an EV. Although a fast charger can recharge your EV in under 30 minutes, it still takes significantly longer than refueling a conventional car at a gas station.
The charging time can extend without a fast charger to seven, eight, or even 12 hours.
Battery Replacement Costs
Range anxiety is a common concern among EV drivers, as they fear running out of charge before reaching their destination. Fortunately, advancements in battery technology have alleviated this worry by enabling drivers to cover longer distances on a single charge.
Still, it's important to note that EV batteries typically require replacement after approximately eight years or 100,000 miles. Although this may seem distant, the cost of replacing your battery can range from $5,600 to $20,000.
Tire Lifespan
The weight of an EV and its increased takeoff torque can affect tire life, as many long-term EV owners can confirm. Tires may need replacement every 25,000 miles, costing around $150-$300 per tire.
Increased Repair Costs
Repair costs for electric cars can often exceed those of gas-powered vehicles, potentially resulting in higher expenses. Unexpected inflation prices can also further contribute to the financial burden.
Finding qualified mechanics for electric vehicles may prove challenging compared to combustion engine mechanics. Certain car manufacturers, like Tesla, may impose restrictions on authorized repair providers for specific vehicle models. A scarcity of parts can also lead to increased prices when replacing components.
Home Charging Station
Fast chargers offer a convenient solution for quickly charging your vehicle, but setting up a charger at home can be quite expensive. On average, installing an EV charger for residential use costs approximately $1,500, which can fluctuate depending on factors such as labor expenses, permits, and additional requirements.
You might need to purchase a charger that is compatible with your car's make, limiting your ability to compare prices. Additional expenses are also involved, such as finding a qualified electrician experienced in installing car chargers and potentially upgrading your home's electrical grid to accommodate fast charging.
Fast Charging Rates
Electric vehicles often come with free charging options, and some manufacturers even offer a few years of complimentary fast charging. However, it is important for potential EV owners to consider the cost of charging on the road using DC fast chargers.
While you can avoid gas stations altogether, you will still need to park at an EV charging station, and the rates for fast charging can differ depending on the location. In certain states, you may be charged based on the amount of electricity (kWh) used, which is a convenient metric. Still, charging your EV at home is generally more cost-effective.
Depreciation
Electric vehicles, like other vehicles, experience a decline in value starting from the moment they are bought. The most substantial decrease occurs during the initial three years of ownership.
Several factors contribute to the depreciation of electric cars, including mileage, age, maintenance, brand reputation, demand, and even government incentives.
The Bottom Line
When considering an electric vehicle, it's important to think about potential hidden costs that could impact your decision. However, there are also advantages to choosing an EV, such as saving money on gas. Take a look at your budget and carefully consider the risks and benefits. You might be surprised to find that an electric car is the right choice for you, or you may decide it's better to stick with a traditional vehicle.
