6 Hidden Costs of Electric Vehicles
Electric vehicles (EVs) have many cost-saving advantages over traditional cars. You’ll never have to visit the gas station again if you drive an EV, unless you want to pop into the convenience store for a snack. EVs also eschew much of the routine maintenance associated with normal cars, like regular engine oil changes.
There are, however, costs associated with owning an EV you may not consider. Here are the most common hidden EV costs.
1. Preparing Your Home for an EV
Getting your home EV-readyis an expense that not many people think about when it comes to EV ownership. If you’re not depleting significant range on a daily basis, a normal 120V Level 1 charger will be more than enough to recharge your vehicle for the next day. But if you use your vehicle extensively and usually return home with a nearly drained battery, you might need a Level 2 charger to meet your driving needs. If you plug in your EV with a Level 2 charger overnight, you can typically wake up to a fully charged vehicle the next day.
Installing a Level 2 charger isn’t cheap. Some charging stations can be plugged directly into a 240V outlet, while others are hardwired into your home’s electrical system. Even if you already have a 240V outlet available, you should consult an electrician to verify that your home’s electrical infrastructure can handle the Level 2 station.
Level 2 home charging stations like theJuiceBox 40will set you back $649, but they can cost thousands if you want more power or multiple outlets. Factor this on top of what your electrician will charge you for installation, which will vary by area and complexity. It’s definitely a worthwhile investment, especially since it will also future-proof your home and make it more attractive to buyers should you want to sell.
2. Higher Insurance Rates
When it’s time to insure your electric vehicle, you might be in for a surprise. According toProgressive Insurance, EVs may cost more to insure. This is because EVs tend to be more expensive than a comparable gasoline-powered vehicle. Usually, pricier vehicles cost more to insure due to the overall expense of replacing the vehicle, as well as the cost of repairs.
Additionally, shops with the know-how to work on electric vehicles aren’t especially common, which means you’ll likely end up paying a premium if you take your battery-powered car to one of these places. This won’t be a problem for long, since EVs are expected to become the norm eventually, so most shops will have to specialize in maintaining and repairing them.
Once EVs become more common, their insurance premiums will most likely fall as well.
3. Fast-Charging Rates
Many electric vehicles include free charging; some manufacturers may even include several years of complimentary fast-charging. But charging on the road using DC fast chargers is still a cost that prospective EV owners must budget for. Even though it’s possible to skip the gas station, you’ll eventually find yourself parked at an EV charging station.
Fast charging rates vary by location. you’re able to take a look at some current prices for fast charging on theElectrifiy Americapricing page. In some states, you’ll be charged per kWh of electricity used, which is a very convenient metric to use. At the time of writing, the price per kWh at Electrify America stations in California is $0.43.
Using California rates as an example, if your vehicle is equipped with a 78 kWh battery, and you want to get it from empty to full, you can expect to pay roughly $33 to recharge your vehicle. It is much cheaper to charge your EV at home, with the national average price per kWh around $0.16.
4. Higher Purchase Price
According toKelly Blue Book, the average purchase price of an electric vehicle is considerably higher than that of a conventional vehicle. The source says that in September 2022, the price of a new EV in the US was $65,291, which is notably higher than the average of $48,094 that buyers paid for a new gas-powered car.
The price gap is more than $15,000, which is a considerable sum. That said, the data might be skewed due to the sheer amount of luxury EVs that are available, as opposed to more economical models like the Chevrolet Bolt. As more affordable electric vehicle choices become available, the average purchase price of an EV should also drop.
While incentives like thefederal tax credit for EVsin the US help lower your total investment, some governments (like the UK) have scrapped subsidies on new EV purchases. Do your research to see if that applies to your country, so you’re not surprised by a lack of discount when it’s time to buy.
5. Battery Replacement Costs
Replacing your electric car’s battery pack can be a scary prospect, especially if it’s a new vehicle. This is probably among the greatest fears associated with EV ownership. Luckily, manufacturers offer extensive warranties that cover an EV’s battery for years. But out-of-warranty EVs are another story, and the price for a battery replacement might be exorbitant.
Considering that the battery makes up a large percentage of the vehicle’s total price, it’s not surprising that they can be expensive to replace, especially if you drive ahigh-performance EVwith a large battery pack.Taking proper care of your EV’s batterywill help extend its service life, but any vehicle part can ultimately fail, and batteries are no exception.
6. Out of Warranty Repairs
When a combustion vehicle’s warranty expires, you may simply have your local mechanic service or repair it. The situation isn’t as clear with electric vehicles. EVs are highly complex machines, and because these vehicles are still relatively new and not all that common in many areas, finding someone to fix your EV out of warranty might be a huge hassle.
Your safest option is going to the dealer service center, a visit that will likely incur elevated repair costs. As more mechanics receive the proper training to fix EVs, this problem should begin to subside. Out-of-warranty EV owners today find themselves at the mercy of the manufacturer’s service centers.
Conventional car owners can choose to visit a reputable independent shop that should charge them less than the dealer, but EV specialists aren’t commonly available. If you find one, you’ll probably pay more than for a traditional vehicle’s repair (although still less than if you just went to the manufacturer.)
As EV Adoption Grows, Ownership Expenses Should Decrease
At the moment, electric cars are still a novelty. There are more EVs hitting the road every day, but we’re still in the early stages before mass adoption. Once EVs become the norm, expenses associated with owning an EV should also go down, and many of the common myths surrounding EVs should also begin to disappear.
Don’t believe everything you hear about electric vehicle charging. We bust EV charging myths to bring you peace of mind.
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