You’ve likely heard all about the benefits of EV ownership. One of the main reasons being that EV’s are markedly cheaper to run than petrol or diesel-powered cars.
While it’s true that they have a higher purchase point, over time this will be offset by fewer running costs like fuel, maintenance, taxing and servicing. Here we will reveal the many reasons why investing in an electric vehicle will save you money in the long term.
What is the average EV price?
In Australia, EVs are more expensive than regular cars because they utilise newer, pricey technology and are produced in smaller quantities. Their large batteries too, contribute to a higher price point, although their cost of production has and continues to come down.
If I buy an EV, will I recoup my investment?
Yes, over time you will. Lower running costs will mean you will eventually break even on what you paid for it. Of course, this is entirely dependent on the model of the EV and how often you use it, but you can expect to see a return on your investment from anywhere between five to ten years.
How are EVs cheaper to run?
Make the switch to zero emissions driving and you’ll make savings in many areas. Here are the main ways that EVs are cheaper to run:
Cheaper to power
Recent price spikes have elevated Australian petrol prices to over $2 a litre. Whereas it only costs around $0.30 per ‘litre’ to charge an EV overnight on a general electricity plan. WhichCar states that EV drivers can save over $1000 per year in home charging costs, depending on the electric vehicle.
Lower maintenance costs
Courtesy of a more streamlined operating system with fewer complex moving parts, EVs are less likely to develop internal issues. Analysis from Consumer Reports estimates EV owners save around 50% more than fuel-powered car owners when it comes to maintenance costs.
Government incentives
To stimulate EV adoption, the ACT offers two years of free registration and stamp duty exemption for electric and hybrid vehicles. Eligible households may also be able to claim a zero-interest loan of up to $15,000 to buy and EV. These are main ways the ACT government is financially supporting future EV owners to make the transition to zero CO2 driving.
Summary
- In Australia, EVs average at around $44,000 to buy.
- You will expect to break even on your EV investment anywhere between five to ten years.
- EV drivers can save over $1000 per year in home charging costs, depending on the EV.
- EV drivers can expect to save around 50% more than fuel-powered car drivers in service and maintenance costs.
- To incentivise EV ownership, the ACT government offers two years of free registration and stamp duty exemption, while some households can claim a zero-interest loan of up to $15,000.
Are you considering making the switch to an electric vehicle? ActewAGL can help you effortlessly find, finance and charge your EV. Discover how ActewAGL can support your transition to sustainable driving today.
Sources
https://walletburst.com/tools/electric-car-savings-calc/
https://www.whichcar.com.au/advice/cost-to-fuel-petrol-car-vs-charge-ev
