How much can electric cars really save you?

Electric cars have gained a strong foothold in Australia’s car market. These vehicles are becoming an increasingly popular option among drivers because of their environmental benefits and cost-effectiveness.

Generally, electric cars do come with a higher price tag. But some electric vehicle makes and models are cheaper to run than petrol engines. With lower fuel costs and lower service fees, you could stand to save a lot by buying an electric vehicle.

But how much money do you save with an electric car? In this article, we tell you what you need to know about how much electric cars can really save you.

How much can electric cars save on fuel costs?

Are electric cars cheaper to run? Depending on the model of the car, it’s generally less expensive to charge an electric car than it is to fill up a fuel tank. You can see fuel cost savings of up to 70% when using an electric vehicle. According to the Electric Vehicle Council, this is what the average Australian spends on fuel:

• Petrol car: $2,500 on petrol over 12,000 kilometres per year. Average costs come at approximately $0.20 per kilometre.
• Electric car: $500 for charging over 12,000 kilometres per year. Average costs will be around $0.04 per kilometre.

That’s a yearly savings of $2,000 when you use an electric car. Electric car costs per 100 kilometres come at only $4. The estimates above don’t take into consideration rising fuel costs, at-home charging or other charging sources.

You can reduce costs even further if you use solar energy or take advantage of off-peak tariffs. In terms of fuel efficiency, electric and hybrid cars are the more practical options.

Are electric cars cheaper to maintain?

Maintenance costs for electric cars and petrol cars run around the same price range. Depending on the mechanic and model of the vehicle, it can cost you around $200 to $400 per service. The difference between electric cars and petrol cars lies in how often they need to be serviced or brought to the mechanic for maintenance.

Most petrol cars need to be serviced every six to twelve months. Meanwhile, electric cars need servicing only once a year. Even though service costs are the same, the frequency makes petrol cars more expensive to maintain.

Plus, electric cars have simpler designs with fewer moving parts, making them easier to service and less likely to break. Electric car service costs may also be lower because there’s less maintenance to do. The biggest issue EV owners may have is the battery degrading, which will likely need to be replaced after eight years.

Do electric cars depreciate faster?

In some cases, electric cars depreciate at a faster rate compared to other vehicles. According to a recent study by iSeeCars.com, a car search database, electric cars lose 49.1% of their original value over five years. This is a significant increase compared to the market average of 38.8%.

Due to their high upfront costs, electric cars can sometimes depreciate faster. However, actual depreciation costs vary based on the make and model of the car. Some electric cars may depreciate at a slower rate compared to others. When it comes to depreciation, the type of electric car you buy can have a notable impact.

How much does an electric car cost?

It depends on the kind of electric car you choose. More recently, manufacturers have come out with electric cars in various price ranges. It’s not as limited as it was in the first few years when electric cars came on the scene.

You can find EVs on the lower end of the price range like the BYD Dolphin which costs around $38,890, or premium electric sportscars like the Porsche Taycan Turbo S with a staggering $363,800 price tag.

Gone are the days when only those with huge budgets could afford a decent electric car. You can find EVs that are around $30,000 to $50,000 which aren’t as heavy on the wallet. While you’re not as likely to find a budget steal out there for a few thousand, there are options.

Are there tax incentives for buying an electric car?

State and territory governments offer incentives to those buying electric vehicles. Some tax incentives include stamp duty reduction or exemption, free registration, or cash rebates. Check the local government websites to see what type of exemptions and rebates you’re entitled to when you buy an electric car.

Can you save more on repayments with an electric car loan?

At loans.com.au, we offer low-rate electric vehicle finance for both new and used electric cars. To encourage more drivers to switch to electric, we provide low interest rates and discounted loans for electric car purchases.

You can also get additional loan features like a balloon payment to lessen the regular repayments. Or opt for a variable rate car loan with loans.com.au to take advantage of a redraw facility so you can save even more on interest repayments.

Book an appointment with our friendly lending specialists. If you’re ready to buy your electric car, apply for an electric loan online and get approval within 24 hours!