Looking to swap your petrol/diesel vehicles with EVs? Yes, it is a good initiative but before doing that it is crucial to have an understanding of electric vehicle ownership cost. Not just the initial buying cost, but the overall cost that will be incurred after purchasing it.
In this article, we are going to throw light on everything related to the Cost of EV Ownership. From initial purchase to the cost of an EV in the longer run. Just read till the end and make a wise choice.
Initial Purchase Price Of Electric Vehicle
When it comes to buying an EV, the initial purchase price is often the first thing that comes to mind. Here’s what to consider:
- Price Range: Generally, EVs can be a bit pricier than their gasoline counterparts, but this gap is closing. Prices in India typically range from ₹10 lakhs to over ₹1 crore, depending on the model.
- Government Incentives: TThe Indian government has introduced a range of measures to promote the use of electric vehicles (EVs) including tax rebates, subsidies, and lower or no registration charges. For instance: You can get up to ₹1.5 lakhs off the purchase price through the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
Be sure to research the specific incentives available in your area, as these can significantly lower your upfront cost.
Financing Options For EVs
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Now that you’ve settled on the purchase price, it is important to also consider the next step, which is how to finance your new EV. The following are some financing possibilities:
- Loans: Traditional bank loans are a common choice.
- Leasing: If you prefer to drive a new car every few years, leasing might be an option.
- Best Rates: Interest rates can vary, so shop around for the best offers. Some banks may even offer lower interest rates specifically for EV loans.
Ensure you familiarize yourself with the terms and conditions with particular regard to the effect of interest rates on the monthly payments and the total amount payable in the long run.
Insurance Costs For Electric Vehicles
Insurance is another important aspect of owning an EV. Here’s what you should know:
- Premium Variations: Insurance premiums for EVs can differ from those for conventional cars. While some insurers may charge higher rates for EVs due to their repair costs, others might offer discounts for advanced safety features.
- Comparative Quotes: It’s wise to get quotes from multiple insurance providers to compare coverage options and costs.
How Much Does EV Charging Will Cost You?
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Now, let’s talk about one of the most significant ongoing expenses: charging your EV.
- Home Charging: Charging your EV at home is generally much cheaper than filling up a petrol or diesel vehicle. The average cost of electricity in India is around ₹7 to ₹8 per kilowatt-hour (kWh). Depending on your EV’s battery size, charging it from empty to full can cost you between ₹150 and ₹300.
- Public Charging: If you plan to use public charging stations, keep in mind that they may have varying costs. While some offer free charging, others may charge per hour or per kWh.
Example Calculation
If you drive a vehicle with a 30 kWh battery:
- Charging it fully at ₹7 per kWh would cost you around ₹210.
In comparison, filling up a petrol vehicle would cost significantly more!
Maintenance and Repairs for an EV
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One of the best things about owning an EV is the lower maintenance costs. Here’s why:
- Fewer Parts: EVs have fewer moving parts than conventional vehicles, which means less to maintain and replace.
- No Oil Changes: You won’t need to worry about oil changes or exhaust system repairs.
However, consider potential repair costs, especially for the battery. Most EVs come with a warranty covering the battery for about 8 years or 1 lakh kilometers, but if you need to replace it outside of the warranty, costs can be steep—sometimes upwards of ₹1 lakh.
Overall, regular maintenance for an EV can be 30-40% less than for a petrol or diesel car.
Depreciation Value of an Electric Vehicle
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Depreciation is another important factor in calculating the total cost of EV ownership. Here’s what to keep in mind:
- Value Retention: EVs may depreciate faster than traditional vehicles due to rapidly changing technology and battery life concerns. However, as more people embrace EVs, resale values are expected to improve.
- Model Comparison: When buying an EV, check the model’s resale value compared to similar petrol or diesel vehicles. This information will help you gauge your investment’s long-term value.
Additional Considerations
Finally, there are some extra perks that come with owning an EV:
- Environmental Benefits: Besides being kinder to the environment, many cities offer incentives for EV owners, such as reduced tolls, free parking, and access to carpool lanes.
- Renewable Energy: If you can charge your EV using renewable energy sources like solar power, you’ll further cut down on your energy costs. This is not only cost-effective but also environmentally friendly.
Final Words
Calculating the total cost of EV ownership involves more than just looking at the purchase price. By considering factors like financing, insurance, charging, maintenance, and depreciation, you can make a more informed decision.
As you weigh your options, keep in mind that investing in an EV is not just a financial decision; it’s also a step towards a more sustainable future. Join #GreenBharat campaign, a step towards a greener India. So, go ahead and embrace the electric revolution! Your wallet—and the planet—will thank you.
