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Buying An Electric Car

April 06, 2023

Jill was looking to buy a new car. She really wanted an electric one. She drove the Tesla Model 3 and Y. It was a fun drive. Her hesitation stemmed from the fact that this car was going to be the primary car used in her family.

She couldn’t get comfortable with the risk of running out of electricity. Jill was concerned about whether super chargers would be available when she needed it; would she need to stand in line: if a super charger wasn’t around, how long before she could get back on the road.

In the end, she decided that an electric car would be a great second family car but not the primary driving car.

Shortly after she made her decision, Barron’s Magazine published an article by Karen Hube (3/10/2023) about how long it will take to payoff an electric vehicle. Below is some of the information.

  • Average EV price $60,000 – about $10,000 more than an equivalent gas model
  • Review cost of gas versus charging. According to the article, if you drive 15,000 miles/year, charging cost for a Volkswagon ID .4 EV would be $3,705 vs. gas of $10,300.
  • Breakeven (B/E) on the higher price to purchase the EV and the difference in fuel – over 5 years. (Higher gas prices would result in lower breakeven)
  • Building a charging station at home can range from $1,000 up. This would add to the B/E number.

The reality is Jill wasn’t looking at the cost/benefit/breakeven on an electric vehicle. She wanted one to get away from fossil fuel. She’s decided that over the next several years with the Inflation Reduction Act and its plans to increase the charging station infrastructure, she’ll just wait.  She did, however, end up buying a hybrid (and she loves it!)

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