Lifestyle
Will your next car be electric?
Considering going electric for your next car? Here’s what you need to know about owning an EV.
By Carolyn Tate
Heard the buzz about electric vehicles (EVs), and wondering if they could be for you? EVs are definitely becoming more popular on Aussie roads. The Electric Vehicle Council (EVC) reports Australian drivers have put more than 300,000 electric vehicles on the road to date, with EVs accounting for nearly 1 in 10 of recent sales.
”With 300,000 electric vehicles on Australian roads – and counting – we’re seeing a significant shift in how Australians choose to drive,” says Julie Delvecchio, EVC CEO. “Just a few years ago, electric vehicles were an emerging option in Australia, with a limited selection of models at expensive prices. But today, EVs are a serious consideration for many drivers and a familiar sight on roads nationwide.”
These days Australians have access to more than 120 EV car models, over 220 variants, and a wider range of affordable options. With advancements in technology and a growing focus on sustainability, EVs offer quite a few benefits, but there are also some risks and costs you might want to consider too.
Let’s take a closer look so you can decide whether an EV might be in your future.
Benefits of owning an electric vehicle
EVs offer several notable benefits that make them an attractive choice, including:
Environmental impact
Producing zero exhaust emissions, EVs can help to significantly reduce air pollution compared with traditional petrol and diesel cars. While there have been concerns about the environmental cost of charging EVs, studies have shown that the overall benefits outweigh the drawbacks.
Cheaper to run
Driving an EV can lead to substantial savings, with EV owners saving an average of $1320 - $3070 each year on fuel, maintenance, and insurance costs. The efficiency of electric motors and the simplicity of their design mean fewer parts to maintain and repair, which translates to lower upkeep costs.
“During this cost-of-living crunch that is hurting so many of us, hundreds of thousands of Australian households have switched to electric vehicles to save thousands of dollars annually on running costs,” Ms Delvecchio says. “Battery electric cars are estimated to save you up to $3,000 every year on fuel and maintenance costs.”
Better handling
EVs often have their batteries located under the car's floor, which lowers your car’s centre of gravity. This design choice improves the vehicle's stability and handling, offering a smoother and more responsive driving experience.
Better performance
EVs offer impressive performance thanks to their unique powertrain characteristics. Unlike traditional cars, EVs provide "instant torque," allowing them to accelerate quickly and smoothly without the need to warm up the engine or shift gears. This results in a more dynamic driving experience, especially when accelerating from a standstill.
Regenerative braking
EVs come equipped with regenerative braking systems, which means that, when you brake, the motor reverses its direction, converting kinetic energy into electrical energy, which is fed back into the battery. This not only enhances the vehicle's efficiency but also reduces wear on the brake pads, leading to lower maintenance costs. Clever!
Risks of owning an electric vehicle
It’s not all sunshine and rainbows when you own an EV. There are some drawbacks you might like to consider, including:
Reliance on electricity
One of the big challenges of owning an EV is that you are entirely dependent on electricity for charging. While public charging infrastructure is improving, it still requires careful planning, especially for long journeys. The time needed to fully charge can range from 10 to 12 hours, making overnight charging essential. If you’re likely to forget to charge your car at night, you can expect some inconvenient situations, particularly if you’re in an area with limited fast charging stations.
Upfront and maintenance costs
EVs tend to have higher upfront costs compared to traditional petrol and hybrid cars. In Australia, the cheapest new EV starts at around $34,000. EV batteries also need careful management to maintain their longevity. Like smartphone batteries, they should not be charged to 100% all the time, and replacement batteries can be expensive.
Read more: Australia's cheapest cars to own, run and insure
Battery concerns
Maintaining an EV battery also involves more than just regular charging. Overcharging can degrade the battery over time, and replacing it can be expensive and logistically challenging. It’s best to ensure you’re caring for your battery properly so you can get a decent lifespan and performance out of your battery and your EV.
Higher repair and insurance costs
The advanced technology in electric vehicles can mean you’re often lumped with higher repair costs and insurance premiums. While EVs generally require less maintenance, the specialised components can be more expensive to repair or replace, affecting overall ownership costs.
Costs of owning an electric vehicle
How much does owning an EV cost? It’s not just buying the car you need to consider, of course:
Buying new: EVs in Australia typically cost between $30,000 and $90,000, with smaller cars starting at around $33,000.
Public charging stations: Charging an EV at public stations can vary in cost depending on factors like location, time of day, and charging speed. On average, charging a 60kWh battery costs between $12 and $26. For medium to large EVs with 40kWh batteries, the cost can be slightly lower.
Insurance and repair costs: As mentioned above, these can be higher than compared to a similar petrol-only car.
“EVs are generally more expensive to insure because the battery pack creates more complexity for repairers, many EV-specific parts need to be imported from overseas, and there are fewer qualified smash repairers for electric cars,” Compare the Market’s Economic Director David Koch says.
In fact, a study by the comparison website of 12 insurers found the top 5 best-selling EVs were 43% more expensive to cover than similar internal combustion-engined models. Popular hybrids were found to be 5% more to insure.
Charging at home: Charging your EV at home is typically more cost-effective than using petrol. On average, it costs about $4.50 in electricity to travel 100km, compared to roughly $13 for petrol. Having a home charging setup can significantly reduce your running costs, provided you have the space and infrastructure to support it. Installing solar energy can further reduce the cost of charging your EV at home.
Who is best suited to owning an EV?
EVs work best for those living in urban areas or drivers who usually make shorter trips. If you live in the city, you can benefit from the ease of access to charging stations and the efficiency of electric motors in stop-and-go traffic.
That doesn’t count out fans of longer drives – you can also use EVs, as long as you plan your routes and charging stops in advance.
More on this: Can you really take a long road trip in an electric vehicle?
Having a dedicated space at home for charging is also important if you own an EV. People with off-street parking or garages will find it easier to manage an EV than those who park their car on the street.
Feature image: iStock/Volodymyr Kalyniuk
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