Are electric cars worth it?

Are electric cars worth it? The  Reserve Bank of Australia’s (RBA’s) most recent rate raise will, of course, impact car loan interest rates. Add to this high petrol prices, combustion engine running costs and cars’ increasing cost. Buying and owning a car is becoming more expensive and is a significant investment. Often only second to buying a house.

Maybe an electric car is worth considering? Climate change is now being taken more seriously, and Governments around the country are making it more attractive to car buyers to go electric.

New EV Sales – August 2022

• August was a strong month for EVs, with 4,235 battery electric vehicles delivered in August 2022
• Battery electric vehicles accounted for 4.4 per cent of the total new vehicle market in August, the highest market share for pure battery electric vehicles ever recorded in a single month in Australia.

Yes, we are seeing an increase in electric vehicle sales as more people become aware of the environmental impact combustion engines have on the environment. However, a recent Solar Citizens survey of 1712 Australians found that 44 per cent would only consider buying an EV if the purchase price was $30,000 or less. Price is a significant barrier to purchase for many of our clients. But it is important to consider ongoing costs when evaluating the purchase.

EV’S are cheaper to run, according to Solar Citizens national director Heidi Lee. If an EV charges with solar panels, they are 93 per cent cheaper. Here is their EV savings calculator.

Figures compiled by Solar Citizens recently show it costs between 60 cents and $1.82 per 100 kilometres to run an EV charged with solar power during the middle of the day – compared to $19.20 for a typical petrol car. That figure rises to $3.50 when using energy from the grid – approximately 81 per cent cheaper than petrol.

The ACT Government is leading the country in Electric Vehicle adoption. They plan to phase out light internal combustion engines by 2035, with a target of 80-90% of new light vehicle sales being ZEVs by 2030. If you are worried about charging on your next road trip, don’t be.

Service stations are beginning to embrace electric cars, with the official opening of the first of 120 fast-charge sites promised for Ampol locations across Australia within 18 months. Ampol is promoting the AmpCharge program through television advertising and says it wants to have Australia’s leading electric vehicle (EV) charging network by 2030. 

But many within the electric vehicle industry believe the automotive sector is holding back the adoption and availability of EV’S. This article from the Sydney Morning Herald is worth a read.  

Read: Revealed – Car industry’s secret emissions plan would slow electric vehicle uptake.

Brands are not stopping their push into EVs, though, with Volkswagen announcing a new EV range to hit our shores around October of next year, with deliveries commencing in early 2024. The ID.4 and ID.5 SUVs are to land first, with the ID.3 hatch following later in the year.

We are also impressed with the Polestar brand, which recently partnered with Hertz. A great way to put an electric car to the test in your typical day-to-day life.

Read: Hertz Polestar 2 rentals arrive as brand commits to EV growth.

Is an electric car worth it? Ultimately it comes down to an individual’s circumstances. Even with government incentives and better loan rates on EV’S, we believe there is still a lot of work to make an electric vehicle a car of choice. We agree the price is a significant hurdle for most car buyers; however, so is charging and range. Like any new product, pricing will remain high until manufacturers can reach scale. However, if the price is not as important, driving and owning an electric car will save you money and help the environment.

If you want to buy an electric car, we can help. Contact us below or if you need more information, read this link from NRMA or an earlier blog we wrote.