Yes, it really does cost less to own an EV.
We’ve seen it time and time again. Claims that the cost savings of EVs will fade over time was tooted again to the Twitterverse recently by financial news aggregator ZeroHedge.
But the controversial tweet couldn’t be further from the truth, as was reiterated by not just countless EV owners but also Dutch EV researcher and expert Auke Hoekstra, who quote tweeted back at the blog saying:
“EVs emit 3x less CO2 over their lifetime now, and get better every year. They are already cheaper overall in many cases and will be cheaper to buy (than ICE vehicles) before 2030.”
Hoekstra already has a fantastic thread pinned to his profile with links to numerous studies and articles underlining these facts. Community Notes contributors also added their own links pointing to helpful information for overseas drivers.
EV Cost Savings in Australia
For Australian drivers, Good Car Co has now created a simple and easy EV cost savings calculator to help those looking to replace their gas guzzler - but who may be worried or cautious about the higher up front "sticker price".
At the same time, it also estimates the savings in CO2 emissions from driving an EV - an important perspective even for those worried about the dollars. After all, there are still huge costs associated with rising global temperatures, ranging from insurances through to the rising costs of simply growing food.
You can can give the calculator a try by clicking here.
Because we tend to hold on to a vehicle for an average of about ten years, it’s important to pay attention not only to that sticker price of a new car but also to how much it costs to run.
Put together, this is called the total cost of ownership.
Unless you’re paying for your car upfront, it's unlikely that the purchase price alone will dictate what you can afford. It’s also the other costs associated with car ownership such as any loan, fuel/power costs, servicing, maintenance and insurance that are all important factors in choosing and owning any vehicle.
For this reason, it’s important to consider and compare the total cost of ownership between electric vehicles (EVs) and internal combustion engine (ICE) vehicles when deciding which car to buy next.
How the GoodCar Co EV Savings Calculator Works
The calculator aims to look at a few things such as how many kilometres you drive each year, how much you might spend on servicing, what the value of the car you are looking to replace is, where you live and if you have solar (or are planning to get some installed) to supercharge your savings even more.
NOTE: Because insurance can fluctuate greatly depending on driving record and demographics, Good Car Co hasn’t factored this into the calculator.
- How many kilometres do you travel each year by car?
The average passenger vehicle in Australia is driven around 13,000km a year (using pre-bushfire and pre-Covid sub-annual data from the Australian Bureau of Statistics)
- On average, how much do you spend on servicing per year? (excluding tyres and brakes)
You might spend a little more on tyres if you enjoy that instant torque! But you will also likely save money on brake pad replacements thanks to regenerative braking.
- Are you looking to replace an existing car in your household?
This is so Good Car can just understand where you are at in your switch to 100% electric transport
- What's the current value of your vehicle that you're looking to replace?
You can also enter the cost of the new vehicle you would otherwise plan to buy
- Do you have a solar system at home?
We ask this because we can then estimate if you can charge for free or save at home even more.
- Which State do you live in?
This helps us work out your average cost of electricity per kilowatt hour and the minimum solar feed-in tariff
What else is included in the EV Savings Calculator?
The Good Car Co EV savings calculator assumes $200 a year for servicing a pre-owned Nissan Leaf EV. (Even new EVs don’t carry much higher servicing requirements and costs as their petrol or diesel engine counterparts.)
The calculator also uses the example of a preowned Nissan Leaf as a baseline, underlining Good Car’s mission to provide affordable, real dollar and emissions savings to Australian drivers. We do this by providing these pre-owned cars at lower prices, delivering on affordability and making them easier to access.
You can see the savings on the total cost of ownership are even higher when buying pre-owned. Sure, new is always nice but as more affordable and high-quality options become available as pre-owned vehicles, it makes sense to simply accelerate your payback. You can start saving now!
Is charging your EV from rooftop solar worth it?
Yes, charging your EV from rooftop solar will save you more in powering an EV, and sooner.
Whereas charging off electricity at home could cost $600-800 to drive around 15,000km a year (compared to between $1,900-2,500 in fuel for an ICE vehicle), charging at home off solar could save an additional $500-600 a year.
So in terms of charging costs, it still works out to be much more cost effective than fuel costs when considering it from a $/km perspective, even if you don’t have solar. But the best energy you can use of course is when it’s free from your rooftop :)
One Final Fun Fact
Did you know that out of every dollar you spend on petrol, just 20 cents is spent on actually moving the car? In comparison, nearly 90 cents in the dollar is used to move an EV. This article from Yale Climate Connections spells out the how and why.
We hope the calculator helps you clarify the dollars you could save by owning an EV. If you're considering going electric but are still unsure, or just want to work out when you could or should make the switch take a look - check out the Good Car Co EV Savings Calculator here.
You may be surprised at the outcome and be ready to make the switch sooner than you thought!
If that’s the case, make sure to check out our cars available stock - and you may be pleased to know that many are ready for delivery today.