Electric Vehicles – The Pros and Cons

The Pros and Cons of Electric Vehicles

Electric Vehicles (EV’s) have been on the market for a few short years.  The initial short comings, such as performance, large initial outlay and limited selection of vehicles have, by-in-large, been overcome and the EV market is expanding quickly.  Some analysts estimate that by 2025, 36 per cent of Australian cars will be electric.  This figure jumps to 70% by 2040. In this article we explore the pros and cons of Electric Vehicles.

Pros

1. Environment - low to no carbon emissions.  The reduction of burning fossil fuels can only be good.  Our reliance on fossil fuels needs to decrease rapidly to combat climate change.  When recharging during day-light hours, solar power can be used, eliminating all carbon emissions. 
2. Reduced Running Costs - electricity is cheaper than petrol or diesel.  Every week the price of fuel seems to be increasing.  Petrol prices go up and up whereas electricity costs, also increasing, can be reduced by installing solar panels.  The installation of panels can be  further beneficial by tapping into government solar rebates when installing and selling electricity back to the grid.
3. Reduced maintenance costs - it is estimated that EV’s cost a third in maintenance compared to the traditional petrol or diesel engine vehicles.  The batteries are the heaviest and most expensive part of the car and have the most impact on the residual value. Reading the owners manual and following the optimal charging regime will ensure long life and great value.  No more engine maintenance and oil changes.
4. Very quiet to run - EV’s are virtually silent.  They are so quiet that there has been a call for EVs to be fitted with noise emitting devices so the pedestrians are aware of the presence of these cars.
5. Electric Vehicle Plans - are now being offered by electrical retailers.  These electricity plans give bonus credits and discounts on your home electricity bill and are available only to owners of EV’s.
6. Reduced Interest Rates for Car Loans - lenders are offering discounted car loan interest rates for all ‘green’ and environmental friendly vehicles.  Call AAA Finance to talk with one of our friendly finance experts.  We will get you the best car loan terms for your new EV purchase.

Cons

1. Travel Distance - the majority of EV's daily range lies between 125 - 400 km depending on the model. Due our vast country ‘range anxiety’ is claimed to be the leading reason consumers are avoiding EV’s.  However, most daily commutes are less than 50 km especially in our metropolitan areas. 
2. Recharging time - Filling up the tank with fuel only takes a few minutes but recharging can take hours.  Planning is key.  A quick fast-charge top-up can take 20-40 mins and depending on your vehicle this can get you a 100 - 300 km range or approximately 80% recharge.  
3. Limited charging stations.  Currently there are over 800 hundred charging stations in Australia available for little to no cost.  This is compared to approximately 6000 petrols stations nation wide.  An EV fast-charging network is still in its infancy.  Websites such as https://myelectriccar.com.au/charge-stations-in-australia/ give a quick overview of charging stations that can be found in your location.
4. Range of vehicles to choose from - as demand for EV’s increases, so too does the presence of options in the Australian car market.  In 2019 BMW, Hyundai, Jaguar, Kia, Mitsubishi, Nissan, Renault and Tesla had EV’s for sale in Australia.  In 2020 there will be even more options that enter the market.
5. Upfront cost - the first EV’s where quite expensive, however, in 2019 prices ranged from as low as $40,000 for the Hyundai IONIQ all the way up to $150,000 for the Tesla Model X.
6. Performance - The gap in performance between EV’s and the traditional petrol and diesel cars is reducing rapidly.  Ev’s not only drive more like convention cars but now there are car manufacturers that are focussed on EV’s with impressive performance such as Audi, BMW and Porsche.

The cons of EV’s are fast becoming pros or at the very least on par with traditional vehicles.  The benefits of owning an EV far out weigh the costs. 

So are you ready to jump on board, reduce your carbon emissions and purchase an EV? AAA Finance can assist you with your EV car loan.  If your a small business wanting to claim the GST on your EV purchase and claim the interest on your car loan, then a low doc car loan is a great option.  Time to upgrade the company car to an EV and save money?   Call AAA Finance today on 07 5493 1222 to discuss your car loan requirements.