Budgeting For An Electric Vehicle: Can You Afford To Own Your First EV?

In Q2 2022, electric vehicle sales made up 5.6 percent of total auto sales – a record high, according to data from the Kelly Blue Book team. EVs are the greatest invitations that keep the environment unpolluted and help to make the earth a better place to live.

Although sales of new cars struggled and more consumers now own used cars, an increasing number of people opted for electric vehicles, which has only cemented their rise in popularity.

If you are one of the thousands that are thinking about taking the step towards owning your first electric car, one of the key considerations at the forefront of your decision is bound to be finances.

Budgeting for an electric vehicle can come with its unique caveats. From financing its higher purchasing price to navigating its differentiated servicing costs, here are a few things to think about when budgeting for an electric vehicle.

Factor In The Cost Of Buying

While electric vehicles have become more popular, they remain more expensive than traditional petrol or diesel cars. For instance, a Kia E-Niro is 20 percent more than a Niro Hybrid, according to estimates from What Car. 

As of July 2022, EVs were $18,000 more. In 2020, Consumer Reports reported that electric vehicles cost between 10 and 40 percent more than other similar vehicles. If you are thinking to buy an electronic vehicle that gives you more mileage and also has a longer life. Then these EV vehicles are going to be a perfect choice for you.

It is important to factor in the higher upfront costs of buying an EV, even if you opt to lease one. This is because it can come with a larger deposit and higher monthly repayments. For the electric off-road vehicle, you have to match up the sprite features for buying the best vehicle.

If you lease an EV, it may be more affordable for your monthly budget but you do end up paying more for the cost of the electric vehicle. First, know the EV types then fix your choice over an electronic vehicle.

Incorporate The Maintenance Costs Of An Electric Vehicle Into Your Budget

Another thing to build into your budgeting for an electric vehicle is the annual maintenance costs that come with owning an electric vehicle. Estimates from the Federal Office of Energy Efficiency and Renewable Energy reveal that maintenance costs for an electric vehicle can average $0.06 per mile.

You also save on maintenance tasks since owning an EV removes the need for oil changes or coolant flushes. You will also need to think about whether you want to charge at home or use public charging points, which may not always be readily available and can come with a supplementary cost.

However, some unique maintenance costs that come with owning an electric vehicle include the cost of periodic checks and services to the dealer. 

According to estimates from Edmunds.com, it will cost nearly $2,885 for Bolt EUV ‘s regular maintenance costs for over five years. There is also the cost of replacing an electric vehicle’s battery pack, which can set you back a pretty penny.

Think About The Annual Insurance Costs

Electric car insurance also tends to cost more. According to a Forbes Advisor, the national average premium for an electric vehicle (EV) was $2,280 annually.

However, while electric vehicles can carry a higher insurance premium, the cost also relies on other factors like your driving history, the kind of coverage you choose, and your credit-based insurance score.

These are also good ways to lower the insurance costs of electric vehicles if you purchase one. Other reasons why electric cars can cost more to insurance include the higher cost of replacement parts (2.7 percent more than gas-powered cars) and the cost of finding specialized repair shops.

So can you afford an electric vehicle or an electric utility vehicle? There are options like electric car finance and second-hand purchases that can help you. Also, owning an electric vehicle does come with savings as gas prices continue to climb. The only question to ask is, can your budget afford all that comes with owning an electric vehicle?

Related Resource: 4 Tips For Building Your Credit In Record Speed

Wrapping Up:

An electric vehicle is a next generations environment-friendly car. Now many car owners like to purchase electric vehicles and cars. These cars are not only environment-friendly options. These cars are also available in different sizes and with different features.

Now the time is gone when Ev vehicles are running slow, and riders do not have to search the charging points for remote charging. The facility is here, you have to know which vehicles you must check.