Have you run into any unexpected costs when switching to an EV? Let us know! Read our full article here: www.carmax.com/research/electric-vehicle-guide
Very informative video. It boils down to an old high school econ phrase "There's no such thing as a free lunch". You might think you're saving, but somewhere down the line, you will pay. Cost of home charger install, cost of likely home install kit (some auto makers give you a charge, most do not), cost of tires, cost of any maintenance that can be higher that ICE cars (cough cough Tesla), insurance and regi increases.... Just like cutting the cord, the savings are minimal at best and the costs go somewhere else and before you know it you're back to where you were. I drive a Model 3 because I love the tech and the way it drives, but I am under no delusions on costs. The same money I spent on my last ICE lease's maintenance was just spent installing a home charger. Of course, if you adopt EVs for a long time than yes, that one charger install is paid for and that becomes one less thing. And if you own any ICE car you should be budgeting/expecting to care for your tires - but this is important info for first time EV buyers.
I appreciate this is based on the USA, but for the UK (and probably most of Europe) the math stack up quite differently... It is bound to when you pay more than triple the price for petrol as you do in the USA. In the UK you can get your 7kV EV charger installed via your electricity provider, normal price is around the GBP 1000 mark (that is with installation by a certified electrician and all the relevant paperwork). Doing this will unlock access to preferential charging rates with many electricity companies (in my case, I pay 7 pence per kW for my EV charging, instead of the normal electricity rate of 23 pence per kW, for instance). You also find promotions on chargers quite frequently if you buy a new EV, though this is getting less common with time. A small petrol car in the UK will easily run you around 18 pence per mile, an EV, if charged at home, is around 2-3 pence per mile (public charging is generally highly overpriced, we need some regulations to stop price gauging there). Depreciation, yes, all cars depreciate and EV's are a little unstable in that regard as the tech is rapidly evolving, but more than 80% of new cars are purchased via lease constructions in the UK, where the finance provider would take the hit on the depreciation anyway. I see the interest paid on the lease as an insurance premium for depreciation. Insurance, was an issue for some time, but insurance prices on EV's have, for the most part, come down to the same level as those of ICE cars in the UK, exceptions being models with scarce or extremely expensive spare parts. Tyres, yes, correct, more expensive than standard tyres as you need heavy duty versions to take the extra weight, can't avoid that one. Price of buying an EV vs buying ICE... well... also changing rapidly, there are now decent option on the EV market in Europe that are priced practically the same as equivalent ICE cars. Granted, many of these are Chinese brands or brands that don't serve the US market, but they are by no means bad cars. Even Opel/Vauxhall (now a Stellantis brand) has launched its newest EV's at the same price as the petrol version of the same car. Government mandates and legislation changes in the UK have even been driving EV prices down massively, as car manufacturers face fines if they don't sell x amount of EV's per year, combined with tax rule changes that dictate that buyers of cars over GBP 40k new retail price have to pay (substantial) extra tax over those vehicles for the first 5 years of ownership, driving prices down to under this mark.
I rent a flat with no option for home charging and I’m a tradesman so I have to use a van. Unfortunately I don’t see a future with a stable home to call mine anytime soon, so I can’t see EVs ever being a suitable option.
Also worth to mention these: The catastrophic depreciation of the resale value of the car especially once warranties start running out; The eventual need to replace the very costly battery; Lastly, the chance of totalling out the car even with unlucky minor accidents that cause damage to the battery.
All of those apply to gas cars as well...buy a $100,000 Mercedes and it'll be worth $40K in 2 years. Engines are not cheap to replace and there are plenty of used high-mileage EVs you can buy right now, an unlucky minor accident can total out any car. Let's be honest about these things, I drive a V8 sports car, but I'm not dishonest about these thin-at-best comparisons.
All of that is FUD that as already said also applies to ICE vehicles as well. Kinda like saying anyone that ever touches DiHydrogenMonoxide will die. Also, there is no guarantee that you will ever need to replace the battery. Unlike a Dodge Transmission EV batteries may never need to be replaced during the life of the car. Plus, an EV battery can easily be re-used for another purpose. A car engine and transmission are pretty much done. Other than re-cycling there is almost no re-use, other than in another car. So, absolutely none of what you said is "Worth Mentioning" as directly relating to an EV.
Cost isn’t just about money. It can be about time, frustration, inconvenience, and other things. I love the experience of actually driving EVs, but let’s face it, the industry has sold us a lie.
Guys don’t forget the federal government provides up to $7500 tax credit that can be taken off the top price of newer EVs. At least with Teslas. You get incentives for switching to EV so yeah over time you will have to pay to keep your vehicle in operable state but what car known to men dont have maintenance issues that cost 100s to 1000s of dollars? Either way we still have to come out of pocket.
This doesn't even take into consideration the premium you pay on the purchase of an EV over an ICE vehicle. The average MSRP of an EV sedan is $50K. An ICE sedan average MSRP is $32K. That $18K premium takes about 200K miles to breakeven considering average fuel costs and average electricity rates. Now, I realize that the average EV sedan leans more luxury than your average ICE sedan (think Tesla Model 3 vs. Honda Accord), but if you actually care and/or are worried about costs, then you probably aren't considering luxury anyways... you're just here to hopefully figure out how to save money on your vehicle usage. At any rate, I have crunched the numbers and am sticking with ICE for now. Once EV sales reach near-parity with ICE sales, I think we'll see prices that make EVs more worth talking about from a financial standpoint.
I did the math and basically EVSE install, maintenance and insurance difference breaks even with ICE after about 15 months. It's worthwhile for savings if you have the money for the upfront capital costs for a more expensive car and the L2 install.
Every car depriciates, while the battery replacement can happen, but then you also consider engine replacement when buying a ICE car? Most people don't so why would you consider battery replacement? Manufacturing defects can happen, but they are very rare.
@@pjcastaldo Yes we do. That's why smart buyers avoid brands like Dodge, Kia, Nissan, etc who have known reliability problems with their engines or transmissions. It's absolutely a consideration and until EVs have been around longer no one can make a qualitative statement on the longevity or rate of battery replacement.
Guys don’t forget the federal government provides up to $7500 tax credit that can be taken off the top price of newer EVs. At least with Teslas. You get incentives for switching to EV so yeah over time you will have to pay to keep your vehicle in operable state but what car known to men dont have maintenance issues that cost 100s to 1000s of dollars? Either way we still have to come out of pocket.
Have you run into any unexpected costs when switching to an EV? Let us know! Read our full article here: www.carmax.com/research/electric-vehicle-guide
@CarMax thank you 😊 that was great analysis
Very informative video. It boils down to an old high school econ phrase "There's no such thing as a free lunch". You might think you're saving, but somewhere down the line, you will pay.
Cost of home charger install, cost of likely home install kit (some auto makers give you a charge, most do not), cost of tires, cost of any maintenance that can be higher that ICE cars (cough cough Tesla), insurance and regi increases....
Just like cutting the cord, the savings are minimal at best and the costs go somewhere else and before you know it you're back to where you were.
I drive a Model 3 because I love the tech and the way it drives, but I am under no delusions on costs. The same money I spent on my last ICE lease's maintenance was just spent installing a home charger.
Of course, if you adopt EVs for a long time than yes, that one charger install is paid for and that becomes one less thing. And if you own any ICE car you should be budgeting/expecting to care for your tires - but this is important info for first time EV buyers.
I appreciate this is based on the USA, but for the UK (and probably most of Europe) the math stack up quite differently... It is bound to when you pay more than triple the price for petrol as you do in the USA. In the UK you can get your 7kV EV charger installed via your electricity provider, normal price is around the GBP 1000 mark (that is with installation by a certified electrician and all the relevant paperwork). Doing this will unlock access to preferential charging rates with many electricity companies (in my case, I pay 7 pence per kW for my EV charging, instead of the normal electricity rate of 23 pence per kW, for instance). You also find promotions on chargers quite frequently if you buy a new EV, though this is getting less common with time. A small petrol car in the UK will easily run you around 18 pence per mile, an EV, if charged at home, is around 2-3 pence per mile (public charging is generally highly overpriced, we need some regulations to stop price gauging there).
Depreciation, yes, all cars depreciate and EV's are a little unstable in that regard as the tech is rapidly evolving, but more than 80% of new cars are purchased via lease constructions in the UK, where the finance provider would take the hit on the depreciation anyway. I see the interest paid on the lease as an insurance premium for depreciation.
Insurance, was an issue for some time, but insurance prices on EV's have, for the most part, come down to the same level as those of ICE cars in the UK, exceptions being models with scarce or extremely expensive spare parts.
Tyres, yes, correct, more expensive than standard tyres as you need heavy duty versions to take the extra weight, can't avoid that one.
Price of buying an EV vs buying ICE... well... also changing rapidly, there are now decent option on the EV market in Europe that are priced practically the same as equivalent ICE cars. Granted, many of these are Chinese brands or brands that don't serve the US market, but they are by no means bad cars. Even Opel/Vauxhall (now a Stellantis brand) has launched its newest EV's at the same price as the petrol version of the same car. Government mandates and legislation changes in the UK have even been driving EV prices down massively, as car manufacturers face fines if they don't sell x amount of EV's per year, combined with tax rule changes that dictate that buyers of cars over GBP 40k new retail price have to pay (substantial) extra tax over those vehicles for the first 5 years of ownership, driving prices down to under this mark.
I rent a flat with no option for home charging and I’m a tradesman so I have to use a van. Unfortunately I don’t see a future with a stable home to call mine anytime soon, so I can’t see EVs ever being a suitable option.
Also worth to mention these:
The catastrophic depreciation of the resale value of the car especially once warranties start running out;
The eventual need to replace the very costly battery;
Lastly, the chance of totalling out the car even with unlucky minor accidents that cause damage to the battery.
All of those apply to gas cars as well...buy a $100,000 Mercedes and it'll be worth $40K in 2 years. Engines are not cheap to replace and there are plenty of used high-mileage EVs you can buy right now, an unlucky minor accident can total out any car. Let's be honest about these things, I drive a V8 sports car, but I'm not dishonest about these thin-at-best comparisons.
All of that is FUD that as already said also applies to ICE vehicles as well. Kinda like saying anyone that ever touches DiHydrogenMonoxide will die. Also, there is no guarantee that you will ever need to replace the battery. Unlike a Dodge Transmission EV batteries may never need to be replaced during the life of the car. Plus, an EV battery can easily be re-used for another purpose. A car engine and transmission are pretty much done. Other than re-cycling there is almost no re-use, other than in another car. So, absolutely none of what you said is "Worth Mentioning" as directly relating to an EV.
Cost isn’t just about money. It can be about time, frustration, inconvenience, and other things. I love the experience of actually driving EVs, but let’s face it, the industry has sold us a lie.
Guys don’t forget the federal government provides up to $7500 tax credit that can be taken off the top price of newer EVs. At least with Teslas. You get incentives for switching to EV so yeah over time you will have to pay to keep your vehicle in operable state but what car known to men dont have maintenance issues that cost 100s to 1000s of dollars? Either way we still have to come out of pocket.
im happy with my hybrid i get 500 miles to a tank.
Am not sure if you mentioned the cost buying EV vs Gas cars.
Evs are still averagely more expensive than gas cars.
This doesn't even take into consideration the premium you pay on the purchase of an EV over an ICE vehicle. The average MSRP of an EV sedan is $50K. An ICE sedan average MSRP is $32K. That $18K premium takes about 200K miles to breakeven considering average fuel costs and average electricity rates.
Now, I realize that the average EV sedan leans more luxury than your average ICE sedan (think Tesla Model 3 vs. Honda Accord), but if you actually care and/or are worried about costs, then you probably aren't considering luxury anyways... you're just here to hopefully figure out how to save money on your vehicle usage.
At any rate, I have crunched the numbers and am sticking with ICE for now. Once EV sales reach near-parity with ICE sales, I think we'll see prices that make EVs more worth talking about from a financial standpoint.
The depreciation is not worth the fuel saving unless you keep it for a long time and hope the battery doesn't fail.
you also forgot the oil in the t-cases and diffs if the electric car has them....that has to be changed regularly also...
That’s not true in Teslas. Stop making stuff up
@@Ron-rb1vw He's not talking about Teslas, he's talking about EV vans or trucks that may have such features equipped.
The only fluid that may need to be changed is for the cooling system, it's recommended at 200k miles in my Ford F150 Lightning.
I did the math and basically EVSE install, maintenance and insurance difference breaks even with ICE after about 15 months.
It's worthwhile for savings if you have the money for the upfront capital costs for a more expensive car and the L2 install.
Hidden costs:
1. $$ Electrification fees at annual license tab renewal.
2. $$ High insurance rates.
You missed depreciation and/or the price of replacing the main battery.
Do you consider engine replacement and depreciation on a gas car? Lol.. keep digging.
Every car depriciates, while the battery replacement can happen, but then you also consider engine replacement when buying a ICE car? Most people don't so why would you consider battery replacement? Manufacturing defects can happen, but they are very rare.
Most batteries are rated to last 300,000 mi or more now. Much longer than what time most people have their cars.
By the time the main battery dies, the car is worthless anyways because they last for 10-15 years
@@pjcastaldo Yes we do. That's why smart buyers avoid brands like Dodge, Kia, Nissan, etc who have known reliability problems with their engines or transmissions. It's absolutely a consideration and until EVs have been around longer no one can make a qualitative statement on the longevity or rate of battery replacement.
Yeah its not like depreciation is important at all. EVs just suck.
Depreciation is 100% a social construct ... if anything it makes it even a better deal to get a used ev
I've watched 20 seconds and I hate this channel.
Guys don’t forget the federal government provides up to $7500 tax credit that can be taken off the top price of newer EVs. At least with Teslas. You get incentives for switching to EV so yeah over time you will have to pay to keep your vehicle in operable state but what car known to men dont have maintenance issues that cost 100s to 1000s of dollars? Either way we still have to come out of pocket.