Posted on August 04, 2018 by Matt Pressman
When comparing an electric car with a comparable gas-powered competitor, often the car with the internal combustion engine will have a lower price point. However, this may be misleading. It's always important to examine the total cost of ownership when evaluating electric vehicles.
Above: Tesla's Model X (Source: Tesla)
Unfortunately, traditional franchise auto dealerships aren't likely to give you the complete picture when you're doing this type of comparison. Dealerships derive a large chunk of their revenue from servicing cars. Electric vehicles, on the other hand, simply don't require as much maintenance as gas-powered cars. It's no wonder research indicates that dismissive and deceptive dealerships don't support EVs. Other studies have discovered dealerships actively try to steer customers to gas-powered cars instead of electric vehicles.
It turns out that your local power company might provide a more accurate head-to-head comparison than your local car dealership. According to Julian Spector at Greentech Media, "New York utility Consolidated Edison this week launched an online marketplace to make it easier for customers to purchase [and compare] electric cars."
Above: Looking at the total cost of ownership between a 2018 Lincoln Navigator 4WD and Tesla Model X 75D (Source: Greentech Media)
Spector writes, "Looking for a sweet SUV for cruising to the mall? Sure, it’s 2018 after all. But doesn’t a Tesla Model X cost $14,000 more than a beefy Lincoln Navigator? Yes, factor in the cost of five years of gasoline versus five years of electric charging, and subtract the NY Drive Clean Rebate and the federal tax credit (while it lasts), and voila: the more-expensive EV is actually cheaper to own."
It's no wonder power companies want to push electric cars. Spector notes, "As utilities stare down a future of flat or declining electricity consumption, electric vehicles offer a glimmer of hope. If customers suddenly need to buy electricity to fuel their cars, that means new load for utilities to fulfill, plus charging infrastructure and distribution upgrades that need to be built."
Above: Saving money at the "pump" is easier with an electric car (Image: Radisson Blu)
And it's likely you'll see this program expanding to other power companies. Spector adds that, "Con Ed and National Grid have outsourced the [car comparison] work to Enervee, a Los Angeles company that invokes 'data-science, behavioral science and digital marketing' to help utilities guide their customers." This makes sense as utilities, ultimately, will benefit from the electric vehicle movement.
Source: Greentech Media