If you can afford an EV — here are some of the financial benefits, according to an EV owner
'Upfront cost might be a little bit high, but the operating costs are really, really low'
Behind the wheel of his 2023 Chevrolet Bolt EV, Belle River resident Sean Hart delights at the driving experience.
Not only does he love his vehicle because he loves the fun of it — he's also impressed with the economical benefits.
"Sometimes the upfront cost might be a little bit high," Hart acknowledged.
"But the operating costs are really, really low, especially when you take into account the cost of fuel ... compared to charging with electricity — just really affordable cars to own."
Savings in the long run
Hart's family owns a 2020 Kia Niro, purchased used last year for approximately $50,000 as well as the Bolt, purchased new this year for approximately $38,000 with a few add-on options added to the initial price tag and the $5,000 federal government EV subsidy subtracted from the total.
He pointed out that his family drives approximately 40,000 km per year, which he estimated would cost him about $7,000 per year in fuel costs. But between his two vehicles, he uses about $1,000 in electricity within that same time frame.
"So for me what I find is it's actually cheaper for me ... to buy an electric car that might be a bit more expensive upfront, but it's gonna save me like over the years right?"
Hart says not all EVs are expensive
However, some industry experts have told CBC affordability continues to be a barrier to access these cars for many individuals across North America.
"The average consumer can't afford these vehicles," said Edgar Faler, a senior industry analyst with the Centre for Automotive Research based in Ann Arbor Mich.
"They're often secondary vehicles in many households and luxury purchases."
Prices of EVs currently available for purchase in Canada can range from $39,498 to $189,000, according to the Canadian Automobile Association. That's an average price tag of approximately $83,510 — much higher than the Canadian average for new and used vehicles.
According to a December 2022 report from AutoTrader.ca., capturing the fourth quarter of 2022, the average price of a new vehicle in Canada was $58,895, a new record high. Used vehicles averaged at a price of $36,240. According to the report, even though the used average is still up nine per cent year-over-year, it has been on the decline over the past six months as used vehicle inventory improves.
However, Hart points out that while some electric vehicles do come with big price tags, not all vehicles are like that, pointing to more affordable options like the Kia and Chevrolet.
Cost prices already dropping
He also points to other cost-saving benefits of ownership, like lower maintenance costs.
He shared that when taking his Kia in for a regular service he was initially quoted $450 but that was because the service provider assumed he was bringing in a traditional gas vehicle. When they realized it was an EV, his maintenance cost was reduced to $220. He also said that he does not need to go in for maintenance as often as he would have with an ICE vehicle for things like oil changes for example.
Meanwhile, there appears to be a growing commitment from some industry players to make electric vehicles more affordable on the whole.
For example, last week Reuters reported that Tesla made promises to cut its EV production costs in half, and on Monday the company cut prices on its two priciest American EVs, the Model S and Model X by four to nine per cent.
This follows another cut Tesla made back in January when it slashed prices globally by as much as 20 per cent in some cases. Ford had followed suit cutting the cost of its new Mustang Mach-E by $5,900.
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