In 2022, there are plenty of reasons to get into an electric vehicle (EV). You’ll save on fuel and maintenance costs (while saving the environment), and charging an EV is faster and easier than ever before.
The uptake of EVs in Australia has been a slow burn compared to other countries, but driving an electric vehicle here is now far more achievable than ever before. It’s expected that by the end of this year, nearly 60 different EV models will be available here in Australia to purchase from the likes of Tesla, Polestar, Audi, Volvo, BMW, Mercedes-Benz, Mazda, Jaguar, Hyundai, Lexus, MINI, Renault, Porsche and more.
Westpac research shows 70% of Australians plan to own a hybrid or EV in the future – but one of the main barriers to ownership is the high initial investment involved with electric vehicles, as well as the supply challenges facing those searching for a new EV in the current market.
Buying a used EV makes ownership cheaper and easier, but where should you start? We explore the initial costs involved with any EV as well as their depreciation and running costs compared to ICE (internal combustion engine) vehicles, and also offer some insight into what to look out for when buying a used EV.
So - what do EVs actually cost?
When it launched in Australia in 2019 (and internationally two years earlier), the Tesla Model 3 was the first model to bring electric mobility to the masses and had the most aggressive pricing yet for any Tesla.
Fast forward to now, and how much have the early EV adopters saved?
A study published earlier this year from Plenti and Accenture found that there is now only a three percent difference between the lifetime cost of a mid-range EV and its comparable ICE counterpart.
The base price of the Tesla Model 3 ($63,900) - Australia’s most popular EV - also already undercuts that of mid-size luxury equivalents such as the BMW 3 Series ($69,900).
It is also predicted that EVs will come in as the cheaper option when it comes to small cars as early as 2027. You can expect to save around $1000 on running costs (fuel and maintenance) if charging from the grid, while an EV powered by a home solar-battery will reduce overall running costs even further.
Other initial costs to consider include having an electric vehicle charger installed - not 100% necessary, but finding a public charging station that isn’t already in use can be a chore depending on where you are. Home chargers are typically 7kW (or 22kW, depending on your home) – and come in between $1000 and $3000. For specifics on pricing and which option would best suit your needs and home, we recommend chatting to an electrician.
Buying a Used EV
As the initial costs of an EV are still considerably higher than those of ICE vehicles, it’s worth considering the purchase of a used electric vehicle. With most cheaper second-hand EVs selling from $25,000, this is a solid discount compared to new EVs (selling from around $45,000 before on-road costs).
If you’re considering buying a used EV, it’s important to know what to look out for. While we check an ICE car’s engine and servicing history when buying second-hand, it’s important to check a EV’s battery. Depending on how (and how often) an EV has been charged, the battery can degrade over time. This degradation can be reduced by using slow chargers rather than rapid charging, and ensuring the battery is mostly depleted prior to each charge. So - always ask the previous owner of a second-hand EV about their charging and driving behaviour.
The size of the battery, and additional features (such as cooling systems) are also important and can improve longevity. Battery capacity is measured in kilowatt hours (kWh) - the bigger, the better.
There are also five types of EV plugs, depending on the make and preferred recharging network of the vehicle. It’s important to determine if the plug that comes with the vehicle is compatible with chargers in your area - and if your used EV doesn’t come with a charger cable, it’s time to negotiate the price down as you consider this extra cost.
Finally - check the service history. While EVs don’t require servicing anywhere near as often as an ICE vehicle, have fewer moving parts and no fluids to replace, it’s still important that the conventional elements of the vehicle are well-maintained. Be sure to research any potential recall issues for the particular model you are considering, too.
Leasing or Subscribing a Used EV
Purchasing an EV definitely takes some consideration, but at carbar, we believe that the adoption of electric vehicles is instrumental to the future of Australia’s mobility.
So far, we’ve built partnerships with AGL, sonnen and Aurora to improve access to EVs for Australians across the country, offering EVs under our pay-as-you-go subscription model. We were also the first subscription car company to become a member of the Electric Vehicle Council (EVC).
Offering the ultimate in freedom and flexibility, there are no lock-in contracts on our subscription cars, and you can stop or swap with two weeks’ notice – with your weekly subscription cost covering registration, insurance, maintenance, servicing and roadside assistance.
If you love your new subscription car and want to own it, we’ve got a solution for that too.
To learn more about electric vehicles, compare your current car to an EV and further consider the switch, you’ll find everything you need at the Green Vehicle Guide.
We’re proud to be leading the charge in transforming the car buying and ownership experience in Australia by providing more ways to access cars with better selection, value, transparency and convenience.
Learn more about electric vehicle subscription today.
