Can New Cars Actually Help You Save Money in the Future?

As electric cars (EVs) continue to rapidly grow in popularity across the globe, several Australians are considering whether investing in one will seriously save them money in the long run. While the initial cost of buying an electric vehicle might be high, the potential for long-term savings with lower fuel costs, maintenance, and government incentives is major. But will an EV cut down on your overall expenses? 

In this article, we’ll learn about the financial aspects of owning an electric car, from up-front costs to long-term savings, and how car removal services can help you make the change to electric easier.

Initial Purchase Costs

Generally, the initial cost of purchasing an electric car often tends to be higher than that of a basic gasoline-powered car. Several electric models start from $45,000 in Australia, while other premium models can reach up to six figures. However, this price gap has been shrinking as EV technology advances and manufacturers create more affordable options.

Government Incentives

To make electric cars more affordable, the Australian government offers various incentives, including rebates, tax credits, and exemptions on import tariffs and luxury car tax. For instance, the Electric Car Discount can potentially save you thousands. These incentives significantly lower the up-front costs, making the transition to an EV more appealing.

Trade-In or Sell Your Old Car

If you’re considering switching to an electric vehicle, you can offset some of the initial costs by selling your old petrol or diesel vehicle. Services like car removal companies can buy your old car quickly, offering you a fair price based on its condition. Whether the car is still functional or junk, you can use the cash from your car removal to reduce the financial burden of purchasing an EV.

Fuel Savings

One of the major long-term savings profits of electric cars comes from their fuel costs, or rather, the lack of them. Charging an electric vehicle is considered cheaper than fueling a petrol or diesel car.

Electricity vs Petrol

The cost of charging your EV at home using standard electricity rates can be generally lower rather than filling up your car with petrol. For instance, the average cost to charge an EV in Australia is around 30 cents per kilowatt hour, which is approximately $15 to $20 for a full charge. Whereas, on the other hand, filling up a traditional petrol car can easily cost you $80 or more, depending on fuel prices and the size of the tank.

Solar Power

If you have solar panels installed at home, the cost of charging your car can be reduced even more as solar energy benefits you to power your car for free and makes it an excellent long-term investment that profits both your wallet and the environment.

Lower Maintenance Costs

Electric cars are much simpler technically than their petrol counterparts. With fewer moving parts and no internal combustion engine, electric vehicles need far less maintenance. This translates into major savings over time.

• No Oil Changes: Since EVs don’t generally use engines with oil, you won’t be required to pay for regular oil changes.
• Fewer Wear and Tear Issues: Traditional vehicles have complex transmissions, exhaust systems, and fuel injectors, all parts that need regular maintenance and might be costly to get repaired or replaced. Electric cars, by contrast, don’t have these parts, which leads to fewer repairs and lower maintenance bills.

However, it’s important to know that while maintenance costs are usually lower, the cost of replacing the EV battery can be pretty high. Fortunately, many electric cars come with warranties, covering the battery for several years, and providing peace of mind for owners.

Resale Value

Electric cars presently have a higher resale value compared to traditional vehicles. As more people become environmentally conscious and look deeper to lower their carbon footprint, the demand for used electric vehicles is more likely to increase. Additionally, advancements in battery technology, meaning newer EVs are holding their charge for longer, increasing their value in the used car market.

Insurance Costs

Insurance premiums for electric vehicles may sometimes be higher than for traditional cars due to the high upfront cost of the vehicle. However, as electric cars become more common and insurance companies gain some experience with them, these premiums are expected to drop. Make sure you shop around and compare quotes to ensure you’re getting the best deal on insurance.

Conclusion

The decision to buy an electric car involves thinking about both the up-front costs and the long-term savings. While electric vehicles might bear a higher price tag initially, the savings on fuel, lower maintenance costs, and potential government incentives make them a cost-effective choice in the long run. With the increasing availability of car removal services, transitioning from a traditional car to an electric one is becoming much easier and financially feasible for several Australians.

By having an electric vehicle, you’re not only saving money but also contributing to a cleaner, much greener environment, a win-win for your pocket and the planet!