Contemplating an EV? Here’s the buzz on the pros and cons

On that last point, while there are certainly some price barriers when it comes to buying an EV, there are also numerous savings to be made. Here are some things to consider from a cost perspective if you’re thinking about going electric:

• Upfront costs: The first hurdle – actually buying an EV – is likely where many people will see the biggest price differences compared to owning a petrol car. The cheapest new EV is going to cost you just shy of $40,000, whereas a new petrol car can still be bought for close to $20,000. The secondhand EV market is growing, however, and Anthony Broese van Groenou, co-founder of secondhand EV retailer the Good Car Company, says a used Nissan Leaf can be acquired for as low as $12,000. “As long as you get a battery report done, so you can see what rate of degradation the battery’s had,” he says. Battery replacement can cost upwards of $12,000, so this is important. “There’s a lot that have been well looked after, and even with the older chemistry will continue to give many, many years of use.” But if you’re in the market for a larger vehicle such as an SUV or van, you’ll likely still have to pay closer to the $40,000 mark for secondhand.

• Charging costs: Once you start comparing the running costs of an EV versus a petrol car, this is where the real savings start to kick in. While a full tank can easily cost a regular driver $100 a week, charging your EV at home will cost just a fraction of that − and it’s simple to do so. EVs can be plugged into a standard 240-volt wall socket and “trickle charged” overnight. You can also get a fast charger installed, though this is a more expensive option requiring the purchase of the infrastructure and an electrician. Calculations from the Electric Vehicle Council show driving 12,000 kilometres per year will cost you about $2500 in petrol, where driving the same distance in an EV will cost just $500, even less if your house has solar panels. However, it’s worth pointing out these savings only really apply when charging your vehicles at home – public fast chargers can be much more expensive at 60 to 70¢ per kilowatt-hour, which while still cheaper, is getting closer to the cost of petrol.

• Insurance and maintenance: According to Broese van Groenou, insurers are starting to realise there’s less that goes wrong with EVs compared to petrol cars, and have started to lower their premiums accordingly. However, the Insurance Council of Australia says it still costs an EV owner an average 18 per cent more in insurance costs compared to petrol cars, coming out to an extra $100-300 a year due to having more expensive parts, a higher cost, and fewer service centres. However, this is offset by the lower maintenance costs EV owners can expect, as electric vehicles have far fewer moving parts. Some manufacturers charge less than $200 for a yearly service. “Servicing for most EVs is getting a suspension check or a tyres check. You barely use your brakes because you use regenerative braking all the time so you won’t use your pads,” Broese van Groenou says. “They don’t need oil changes, they don’t need timing belts, and they don’t need clutches.”

• Incentives: There are a raft of discounts and rebates offered by state governments to EV buyers that can cut thousands of dollars from your purchase price, although the Victorian, NSW and South Australian state governments have all recently ended their rebate programs. You may still be eligible for discounts on your registration, so check here to see what incentives are currently in play. The federal government also offers a discount for novated leases on EVs.

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.