Financial Benefits and Incentives By Switching to Electric Vehicles

Many people are now turning to electric vehicles – because the financial incentives are hard to ignore.

Statistics from the Federal Motor Transport Authority show that the number of new electric car registrations in Germany increased by almost 44% in 2018. Many people are now turning to electric vehicles (also known as plug-in vehicles or EVs) as an alternative to gasoline vehicles. This is because EVs are becoming more sustainable, and very soon, the financial incentives will be hard to ignore.

Charging costs

Electric vehicles can save you money, with cheaper fuel costs on average than petrol/diesel cars. The average household spends close to one-fifth of its total budget on transportation, so saving on fuel can make a huge difference in terms of family expenditures spent on transport. On average, it costs less than half as much to travel the same distance in an EV than a conventional vehicle. If you have a modern EV, on average, a charge for 100 mile range currently costs around €4 while an equivalent gasoline car can cost up to €14 to travel the same distance. That’s a difference of over 70%, assuming you charge at home from the national grid or at public charge points. In addition, charging at home during the off-peak times will reduce the electricity costs even more. Also, some organisations opt to provide free charging to their employees as incentives, and even those that set paid tariffs are much cheaper than public charge points.

Purchase and resale price

Buying a car can be very expensive and that’s why many people cannot afford to make lump sum payments. Most people rely on car loans but these are only limited to people who maintain a good financial reputation in terms of credit scores. In order to cater to more people, the EV market is responding by reducing vehicle prices. A report by Bloomberg New Energy Finance revealed that electric cars may be cheaper than gasoline cars by 2024. As of now, EVs are slightly more expensive than their gasoline equivalents. This is due to the high manufacturing costs of raw materials such as lithium-ion batteries and other electronic components.

However, over time as efficiency has increased, EVs are now becoming cheaper and affordable to more people. So if you plan to buy an EV in the future, chances are that you can afford to make payments on it. Especially now that governments are giving incentives in order to improve adoption of EVs, you can easily get a car loan or credit to purchase an EV. In addition, if you want to get lower interest rates on your car loan, it may help to work on your credit score or improve your credit report. The German government introduced bonuses to buyers in order to reduce the price of electric vehicles, by as much as 20% in some models. Buyers of purely electric vehicles get €4000 as rebates while those of hybrid vehicles get €3000. When it comes to resale price, EV models with ranges of about 200 miles are selling with high prices in the resale market, according to Kelley Blue Book. For example, Tesla’s model 3 which boasts the most miles per charge, is expected to retain 64.3% of its original value after three years. So if you plan to sell your electric car, you will get more money than selling a used gasoline car.

EVs are here to stay and they will get even better as battery technology continues to improve. Get the EV of your choice and you’ll start making savings immediately.

Jennifer Dawson

03.09.2019   |