5 Hidden Costs of Owning an Electric Car

The push for cleaner vehicles is accelerating globally. The EU will tighten emissions standards in 2025, the UK will ban combustion engine car sales by 2030, California by 2035, and France by 2040. Part of the appeal of owning an electric vehicle is its eco-friendly value point and the significant savings from no longer needing fuel. Nevertheless, while the starting price and the features can be alluring, buyers should also be mindful of the hidden costs of owning an electric car. 

The financial framework of an electric vehicle is more complex than it seems at the outset. Starting from the battery maintenance of the vehicle to the insurance variance and possible devaluation, there are a few factors that need to be looked at before ownership. Understanding these costs before making a purchase is an essential step to ensure that your electric vehicle is economically practical and sustainable.

Here are five hidden costs of owning an electric car:

1. Installing a charging station

If you’re thinking about owning an electric car, you would probably have to invest in a home charging station. While charging stations at public places are becoming more common, having your home charging point is just a tad bit more convenient. However, the installation process would require an electrician to figure out if your existing system can handle the extra load. The entire process would cost a few thousand dollars.

2. Additional electricity charges

Although charging an electric vehicle would result in significantly lower costs than what you would otherwise spend on fuel, it still can increase your electricity bill. This factor also greatly depends on the regional rates, higher rates would result in even greater bills. Therefore, it is important to navigate through local electricity rates and calculate the expected consumption to avoid hefty costs.

3. Maintenance is pricy

Maintaining an electric car also adds up as a hidden cost factor that people initially overlook. While it may seem that electric vehicles require less upkeep than traditional vehicles, there are a few things that will make up for it. The components used in electric cars are unique and, hence, oddly expensive. For example, a new battery for an electric car would cost somewhere between $5,000 and $15,000. It's also worth noting that repairs may sometimes require parts from the vehicle's manufacturer and specialized technicians. 

Read: 6 Essential Tips for Electric Car Maintenance

4. Costly insurance premiums

Another hidden cost of owning an electric car that might not show up first when you buy the vehicle is the hefty insurance prices. This difference in premium between electric and traditional cars is because of high repair costs and parts that are unique and expensive. Since electric vehicles are still new, some insurance companies prefer to keep their prices on the higher side because of the intricacies involved. Hence, it is advisable to compare quotes before selecting an insurance company.

Read: How to Get Cheaper Car Insurance in Canada

5. Unpredictable depreciation

The last point to look at is the uncertain resale value of electric vehicles. Some cars might do well, and some might not. Since the technology is constantly evolving, the latest technology catches the eyes of the buyers. So, newer models attain a better resale value as compared to the older versions, which depreciate sooner than you think.

Read: How Does Depreciation Affect the Value of Your Car

While electric cars are the need of the hour, considering their eco-benefits and low maintenance costs, it is equally important to look out for the hidden costs associated with them. By understanding the points mentioned above, people who are looking forward to buying an electric car can make an informed decision regarding their purchase.