Considering an E.V.-someone talk some sense into me!

[godsgrace2011]

Looking at a 60k premium AWD Ford Mach-E (Mustang). Currently own (free and clear) a 2018 Ford Escape that’s in really great shape, but has 113k on it. Thinking I could get 15k for trade-in or sell privately and perhaps get a bit more. Really like this car and the idea of not paying $2.05/L at the pump. The trade off there is that I’d have a monthly payment. Ugh. I know there are other associated costs (charging port installation and accessories). I know that E.V.s tend to depreciate quicker than a petrol equivalent. I’m nervous about the cost of battery replacement when it starts to go. Am i missing something?

 

[ntl]

@godsgrace2011 I own a Bolt and the gas savings are huge. I drive 180km to and from work though 4 times a week. The gas savings nullify the car payment.

That said, unless you drive a lot like myself, I wouldn't consider it. You own your current car. Drive it into the ground.

 

[johnmuir]

@ntl And the calculation only works when factoring new gas or electric. If the rational is for savings it’s better to drive your used vehicle.

 

[dreambig]

@johnmuir Not necessarily. At 180km/day, 2.05/L gas, 21.5 working days/month, assuming current car gets 9 l/100, that is $714/month in gas costa. A $600/ month payment for an EV could net out pretty close to even eith gas savings if insurance isn't dramatically different

 

[johnmuir]

@dreambig Insurance will bump up $750+ a year. Need to factor some electricity costs. But can’t be driving 180km a day with only 113,000 on a 6 year old vehicle. But yes your math does make it bit more attractive even if included vehicle depreciation.

 

[ntl]

@johnmuir Depends on the car. When you average out insurance costs for all EVs, that includes Tesla's. Tesla's have really bad insurance.

My Bolt has insurance of about 120 a month which was slightly less than my Equinox. With the same insurance the next cheapest insurance was 215 a month for a Tesla.

I'd still tell the OP to keep used but in some cases (especially when looking at new vs new), particularly high mileage, EVs are a really good long term choice. I intend to keep mine for as long as it's possible to max my savings.

 

[dreambig]

@johnmuir Yeah I was more talking about the situation of the person you have been replying to there, I don't think OP said anything about the mileage they do. Also I don't think insurance numbers are straightforward enough to make a blanket statement like that.

As an aside I know a couple people who do construction site inspection type stuff and regularly drive 2-300+ km per day. Those types of people really could be saving money going from an average 3 yo car to an EV, factoring everything in and assuming the baseline is keeping their current car. Definitely an outlier case though.

 

[ntl]

@dreambig I think the issue with Tesla's is the length of time for repairs hence the higher price tag. At least other companies have a larger more robust service network.

I would be curious to see the breakdown of average insurance costs by brand/model. It is probably difficult to really know the particulars as individual drivers can have a wide range of premiums based on so many individual factors.

I would say that Tesla's are considered more expensive to insure. I mean, they did create their own insurance wing for a reason.

 

[ntl]

@dreambig That's without factoring in regular oil changes. After 30,000km, I've only attended a vehicle inspection at 70$.

 

[momwifeandeverythingelse]

@godsgrace2011 It's 12 years to pay the $45K difference off by fuel savings at $2/L, 18000 km/year and 10 L/100 km. Without considering interest.

Insurance will also go up. This decision will not save you money; if you can afford to do it and value having an EV go ahead, but don't think it is a positive financial move.

 

[razzinhelpless]

@godsgrace2011 If you're having to finance a car in this interest environment, and you have a functional car right now that meets your needs, the smartest move is to maintain your current car. Instead of monthly payments, put aside money from now and aim for a cash purchase or at least a smaller loan down the line.

I say this as someone who bought an EV last year and am more than happy with the decision. But, my old car was at 14 years with 250K km on it. I was worried about the reliability, and felt comfortable with the justification for a new car at that point.

I know I was paying a premium, and wasn't sure how my costs would work out. Costs have been lower than anticipated, so my gas savings is high, and I'm pretty sure that whatever premium I paid over getting an ICE will be recouped in about 5 years. But , I have a lengthy but predictable commute thats almost ideal for an EV. And I still only bought when I was due for a new car.

Even if you wait 2-3 years, the EV market is likely to be a lot different. There will be more choices and hopefully some tech breakthroughs.