Guest post by Alan Seymour
Making the switch to EV driving after many months of car shopping and spend-strategising can definitely be very rewarding. Not only will you be able to enjoy significantly reduced maintenance and servicing costs on your vehicle, but you can also sidestep the bowser booms completely.
Yes, there’s a lot to look forward to when purchasing your first EV. But before you shift to greener driving, you’ll first need to outline your buying strategy. As is the case with buying any vehicle, your EV is a high-cost investment, and doing a little due diligence can help you make a sound investment that delivers optimal value, both with regards to daily operating expenses, and perhaps even resale value as Australia’s secondhand EV market and used EV auctions continue to grow.
Here are some key considerations you’ll need to make when calculating the overall cost and potential cost-value of your EV switch.
Calculate your estimated insurance costs
A brand new EV is a prized asset, there’s no doubt about it. That’s why you’ll want to take out comprehensive car insurance for your new purchase.
With a suitable comprehensive policy tailored to your EV, you can rest assured that your insurance provider will be able to provide full or partial cover for the repairs to your car if it is damaged during an insured motor incident. And depending on the limits of your policy (or the total dollar amount that you’re insured for, if you insure for agreed value), your insurance provider may even be able to cover the costs of buying a new car, minus your excess.
Keep in mind, however, that insurance premiums for EVs can sometimes differ vastly from policies for combustion engine vehicles. This is because EVs contain advanced technology, specialised parts, and high-value lithium batteries that possess higher price points when it comes to sourcing spare or replacement parts.
When budgeting for your EV switch, it’s a good idea to obtain a few different insurance quotes from a handful of providers before landing on any particular policy. Shopping around like this will give you a clearer picture of what your monthly or annual premiums may look like and help you avoid any nasty surprises if you do ever need to make a claim on your car insurance.
Spare parts markets and maintenance costs
As briefly mentioned above, the estimated value and availability of spare parts for all your shortlisted EV models can also play a major role in your deciding what EV to invest in in the end.
On top of assessing parts markets and the going rates for lithium battery replacements, consider also inquiring on EV maintenance cost estimates with a trusted mechanic. Although EVs do indeed cost more to purchase upfront, they can often be cheaper to maintain over the long run. This is primarily because electric vehicles tend to have fewer moving parts than traditional combustion engine cars. Fewer moving parts means there’s no need for oil, so no oil changes, fewer fluid replacements, and typically less wear and tear on your engine components.
Brake systems in EVs may also last longer due to regenerative braking technologies, which helps slow the vehicle while simultaneously recharging the battery. With this tech, there’s significantly reduced wear and tear from brake pads and rotors, which can also help you save on your EV maintenance costs. Over the lifetime of your car, these maintenance savings can add up and offset some of the higher initial purchase costs and are worth considering.
Calculating EV charging costs
One of the most appealing aspects of owning an EV is the potential savings on fuel when compared to a traditional combustion engine vehicle. Instead of filling up at the petrol station each week or fortnight, you’ll be charging your vehicle using electricity. However, electricity isn’t free, and you may even need to invest in some infrastructure for charging your EV at home – like an enclosed garage or carport fitted with an outdoor-rated power point. So it’s important to accurately estimate what your charging costs are likely to be, including upfront costs for renovating your garage.
How much does it cost to power up?
If you plan to charge your EV at home every evening, your electricity bill will increase slightly depending on how often you drive and the size of your EV’s battery. Many EV owners find that charging their car overnight during off-peak electricity hours can significantly reduce power costs. Over time, the savings compared to petrol or diesel vehicles can be substantial (see Savings Calculator), and you can put that money towards your savings or a holiday.
Public charging is another factor to consider here. While some shopping centres, workplaces, or public areas offer free or low-cost charging stations, many rapid chargers require payment before you can use them. These fees can vary depending on the provider and charging speed. Factoring in the mix of home and public charging can help you estimate your overall energy costs more accurately.
Calculating the costs of charging equipment and infrastructure
Another cost that first-time EV buyers often overlook is the price of installing a home charging setup. While many EVs come with a standard charging cable that can plug into a household outlet, most EV drivers prefer installing a dedicated wall charger, which offers faster and more efficient charging.
A home charging station will require professional installation by a licensed electrician to ensure safety and compliance. The total cost may vary depending on your home’s electrical capacity and whether any upgrades to your circuitry are required. While this may seem like a significant upfront expense, a home charger definitely provides convenience, faster charging times, and long-term value for EV owners.
A calculated conclusion for your new EV
Making the eco-friendly move to an electric vehicle is an exciting step toward a more sustainable and potentially cost-effective way of driving. By carefully considering factors such as insurance, charging costs, equipment installation, and maintenance savings, you can create a realistic budget for your EV switch.
With a little planning and forethought, you’ll be well on your way to reaping all the benefits that electric driving has to offer.