Electric vehicles might be the wave of the future, and we’re all eventually going to be making the switch.
However, here’s one important thing to remember right now: don’t buy the hype that they’re always going to save you a bundle of cash.
There are hidden costs that you’ll want to be aware of before you dive in, and we’re here to lay a few of them on the table.
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First, your initial investment is going to be higher.
Electric vehicles costs about $10k more than the average car cost per the National Resources Defense Council.
Second, because the costs of the cars are higher, that means the parts cost more.
That means the inevitability of car repairs also cost more – around 1.6 to 2.3 times higher than a gas-powered car. Both parts and labor are to blame, according to J.D. Power.
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The higher costs don’t end there, though.
MoneyGeek says insurance rates are also higher, to the tune of around 15%. Also, 31 states charge a special registration fee for plug-in electric vehicles, says the National Council of State Legislatures.
Additionally, access to a special kind of charging port could be a potential added expense as well. And that electricity is not free.
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All of that said, however, a 2020 Consumer Reports report found that the lifetime average cost of owning an electric car instead of gas is actually lower. Over the entire time you own your car, they say you can expect to pay between $6k-$10k less – which is definitely not insignificant.
Whether an electric or gas-powered car is right for your family is something only you can decide, but knowledge is power and now you have more of it so that you can make the best possible decision.
