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Electric cars are financially a lot of money up front for fairly minor savings long term. Which isn't so bad with interest rates in the 1-2% but with interest r
by VBprogrammer 2y ago
Electric cars are financially a lot of money up front for fairly minor savings long term. Which isn't so bad with interest rates in the 1-2% but with interest rates on car loans running around 8% it's a very difficult sell.
- constantcrying 2y agoMaybe, but the whole car market grew. If the interest rates made people avoid buying cars, it should apply equally. Porsche sold more cars than they did the year before.
- VBprogrammer 2y agoIt would need a more serious analysis to really get to the bottom of that but I think would hypothesise that electric cars being significantly more expensive than the equivalent ICE changes the dynamic slightly. It's harder to justify financing a more expensive product up-front in the hopes of running costs offsetting the cost later on when you have to pay significant interest on the difference. Also, supply chain issues and inflation on underlying materials have obvious had significant impacts on sales over recent years.
- constantcrying 2y agoAnd obviously a very serious jump in prices, due to the removal of subsidies, makes them far more unattractive.
- Ekaros 2y agoAlso there is to consider if those savings will vaporize at some point when government starts to search for more revenues. With ICE they are likely to stay static or go some up. With EV taxation and usage fees anything can happen...
- dzhiurgis 2y agoNZ is great example, recently blessed with new government. EVs now pay same road user charge as 3.5 tonne diesel truck. There were some promises to start charging gas cars using same model, but right now an efficient hybrid pays 2-3x less in road user tax than EV. Still it's at least 2x cheaper to drive EV - power is super cheap here while gas is expensive.