Home Personal Finance Assessing the Cost-Benefit of Buying an Electric Vehicle

Assessing the Cost-Benefit of Buying an Electric Vehicle

by My Journey to Millions

An electric vehicle, or EV, is a vehicle that is powered partly or wholly by electricity. Different kinds of EVs have various benefits for consumers. All-electric vehicle batteries tend to drain more quickly than hybrid vehicles, but they also generate power from braking, partly recharging the battery as you drive. After the battery depletes, they can be charged in 30 minutes up to an entire day. Some hybrid cars switch over to an internal combustion engine after the battery gets depleted.

Some places have charging outlets to replenish EV car batteries away from home, but they remain few and far between. When EVs become more mainstream, they may become as common as gas stations, or more so. When you buy a new electric vehicle, you can also install an electric vehicle charging station in your garage. This way, you can connect straight to the electrical grid from the comfort of your own home.

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Environmental Impact

Aside from electric vehicles being more efficient than gas vehicles, they also positively impact the environment. Since all-electric cars do not use any gasoline, you’re using an almost infinitely renewable resource: electricity. The lack of gas also means that no harmful emissions are muddying the air. Even with hybrid vehicles, you use less gas, which contributes to a healthier environment.

One potential drawback of electric vehicles is that the emission of CO2 may remain the same. CO2 emission depends on where the charging stations are drawing power. Solar power can cut down on these negative aspects as the power generated is stored in batteries separate from the electrical grid. Electric cars also use certain metals of which there is a finite amount deep in the earth’s crust. Depleting these resources could hurt the production of electric vehicles in the future.

Financial analysis

Cost Benefits

While electric vehicles are a little on the pricey side now, that may not be the case in the future. There exist a few methods to potentially save on money with the new purchase of a vehicle. A prominent example would be purchasing a solar panel or two along with the car. Most of the money spent will be recouped in time, at least breaking even in the long run or ending up with more money. If standard home improvement solar panels aren’t cutting it, you can upsize them to generate and store more electricity. The price of gasoline fluctuates continuously, while the cost of electricity has remained relatively stable over the years.

All-electric vehicles lack the vast majority of parts associated with internal combustion engines. Fewer small parts equal fewer breaking parts, which means lower repair costs. This applies partly to hybrids at the same time, even with the use of gas. Another benefit is the potential tax incentives associated with purchasing an electric vehicle. These incentives could end up reaping a few thousand dollars a year, which can go right back into your pocket. Some places even give a tax credit if you install a charging station in your garage.

As with all things, there are benefits and drawbacks to electric vehicles. While they could end up saving tons of money, they could also deplete other earthly resources in the future. Overall, they seem to have a positive on the planet.

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