Electric vehicles (EVs) are growing more and more popular as each year goes by. Are you someone who is wondering if now is the time to invest in one for yourself or if you should wait for future technology advancements and upgrades?
There are definitely compelling reasons and benefits to buying an electric vehicle in 2024, but the purchase price can also come with some extreme sticker shock.
So, should a prospective buyer purchase an electric car now or wait before making the big move? There is no cut and dry answer, but there are factors to consider that will influence your decision.
BENEFITS OF BUYING AN EV
Government Rebates
Did you know? The Canadian government provides up to $5,000 in incentives for buying or leasing electric cars and hybrid vehicles.
Some provinces also provide their own rebate programs. We have one here in Manitoba, which provides rebates of:
•$4,000 on the purchase of a new eligible electric vehicle
•$1,000 to $4,000 on leasing an eligible electric vehicle
•$2,500 on the purchase of pre-owned eligible electric vehicles
Dealer Discounts
Tesla is cutting their pricing, which is prompting the rest of the electric vehicle industry to follow suit. As many manufacturers have introduced new electric vehicle models and increased production, car dealers are now more prepared to provide discounts simply because there is more inventory available.
Environmental Benefits
Emissions from gasoline-powered cars and trucks are not only bad for our planet – they’re also bad for our health. Electric vehicles provide considerable environmental benefits including lower emissions and less reliance on fossil fuels. Plus, electricity is significantly cleaner and cheaper than gasoline.
Cost Savings
One of the biggest benefits to driving an electric vehicle iis the amount of money you’ll save on gas. If you buy a plug-in hybrid vehicle, you’ll buy a lot less gas than with a gas-powered vehicle. And if you buy a battery electric vehicle, you won’t need to buy any!
Less Maintenance
Electric vehicles require less maintenance than gasoline-powered cars. There are fewer fluids (such as engine oil) that require regular changes. The wear and tear on brakes is less because of regenerative braking, which is found on most hybrid and electric vehicles. There are also fewer moving parts that normally require consistent maintenance and tune-ups.
FACTORS TO KEEP IN MIND BEFORE BUYING AN EV
High Purchase Price
As we mentioned above, electric vehicles offer long-term savings on fuel, lower maintenance costs and environmental friendliness – but their initial purchase price can be very high. This means you should assess your financial situation and evaluate your budget before diving into the world of electric vehicles.
With this being said, make sure you are also considering government subsidies and incentives (see above section) that can help reduce the cost of owning an electric vehicle.
Different Model Options
Currently, there are over 90 electric vehicle models for sale in Canada and the average price is $82,000. While Tesla may be the most well-known brand, several other manufacturers provide comparable electric vehicles at varying prices.
This is why it is critical to research the vehicle that best meets your needs, budget and lifestyle. Whether it’s a small sedan for commuting or a larger SUV for family adventures, there are different models to meet different needs.
Maintenance Costs
It’s true, electric vehicles have fewer moving parts and require less maintenance than other cars, which can save you thousands of dollars over the years you will own the vehicle.
However, electric vehicles still require maintenance including tire changes, pressure checks, windshield wiper replacement and more. Electric vehicle batteries also degrade over time, reducing their ability to sustain a full charge. You may eventually need to replace the battery – or trade in your vehicle for a new one.
Charging Infrastructure
A common anxiety amongst electric vehicle drivers is calculating the distance they can travel on a fully charged battery before needing to charge again. The number of hybrid and electric vehicles on the roads are increasing, but charging stations are still much less common than gas stations.
With that being said, the Canadian government has promised to subsidize the installation of 50,000 new charging stations across the country by 2030.
If you live in a large city and use your car mostly for short journeys, you won’t have to worry about locating charging stations. If you reside in a small, rural community and must travel long distances, buying now might not be practical.
Technology Advancements
Technology is always improving and new electric vehicle models with enhanced capabilities are constantly being introduced. While waiting may allow access to the latest technology and features, it also means delaying the benefits of owning an electric vehicle now.
Consider whether the projected electric car enhancements are worth delaying your purchase or if the benefits of buying an electric vehicle today outweigh any future upgrades.
PURCHASING A USED EV
Buying a used electric vehicle can result in significant savings versus purchasing a new one. Plus, many dealers will provide financing or leasing options as an alternative to buying a used electric vehicle outright.
Many used electric vehicles are still under warranty and have limited kilometres, making them an attractive option for the environmentally conscious shoppers on a budget – but always remember to look into the vehicle’s history including battery health and maintenance records.
If you get approved for vehicle financing through Birchwood Credit, we can help you find a hybrid or electric vehicle through our massive inventory. Our goal is to help you get approved so you can start driving right away. To get started, fill out our fast and easy Car Loan Application today!
