Are Electric Cars Actually Worth the Price?

Electric Cars Actually Worth The Price
Electric car charging. Image credit: Adobe Stock.

Sometimes, when you take a step back and look at it, it’s amazing how far technology has come. Even though AI is a hot-button topic right now, electric vehicles have been making waves recently. What used to feel like an out-of-reach luxury only a few years ago has quickly become much more attainable for the average person.

However, electric cars still aren’t at a point where we can just say, “Go buy one already.” Still, we think they’ve reached a point where it’s worth considering purchasing one if you need to get a new car in the next year or two. So, today, we’re asking the question, “Are electric cars actually worth the price?” Let’s take the time to find out.

The Initial Cost

The number one thing that stops many from even considering an EV is the fact that these cars are expensive. While prices have significantly dropped since they first hit the market, the average price tag doesn’t reach a level that many would consider reasonable.

If we only consider the average, though, we’re completely overlooking the existing budget EVs. With more manufacturers entering the electric car market, there’s finally some competition. Some EVs can be as low as $25,000, which is comparable to many gas-powered cars. While these electric vehicles won’t have all the same bells and whistles as a Tesla, it’s a good starting point.

Fuel Savings

The number one plus of owning an EV is the amount of money you’ll save on gas. Car owners typically spend thousands of dollars on gas each year. While electric car owners must pay for their electricity, this number averages near the $500 range. Even if you add on the cost of installing a home charging station, your first year paying for electricity will still be smaller than the average yearly gasoline bill.

Potential Maintenance

One thing many don’t consider that can make electric cars worth the price is future maintenance costs. Even though EVs are prone to issues like any vehicle, these cars require much less maintenance than their gas-powered counterparts—helping them last much longer.

However, this only applies to required maintenance. If you want to do some upgrades on your own, it’ll cost you more since many EV parts cost more than traditional ones. Just changing your tires and wheels can affect your EV, which might save you more money in the long run.

Insurance Changes

The final thing to consider is insurance changes. Since electric car parts tend to cost more, your insurance company will pay more to fix them after a wreck—leading to higher insurance premiums. However, as with the initial car cost, people expect these prices to decrease over time.

After considering all these aspects, it seems like EVs are definitely worth the price. If you want to wait a couple more years, we’re sure the cost savings will be even more satisfying, but there’s nothing wrong with getting in on the current trend.

Would you like to receive similar articles by email?

Red Lasiste is a Chartered Professional Accountant (CPA) and a law student at Western Law. He is also a car enthusiast and enjoys everything financial-market and technology investment related. His hobbies include golf, travelling, hitting the gym, and playing with cats. You can follow him on LinkedIn.

Leave a Reply

Your email address will not be published. Required fields are marked *