The latest surge in fossil-fuel prices means it is now up to nine times cheaper in the UK to drive an electric vehicle (EV) than a petrol or diesel car, shows Carbon Brief analysis.
But unfortunately when you look at the total cost of ownership the price premium you pay for an EV over it’s ICE equivalent here in the UK and the typical ownership period of 3-4 years due to the majority being “purchased” using PCP (personal contract purchase) that has a balloon payment at the end very few pay means most people will never actually make a saving.
I wouldn’t really blame the PCP. It’s not as predatory as it sounds at first, especially considering it uses the wording “balloon payment” for one of the options at the end of the term. The horrible value you’d get on a PCP is nearly the same as the depreciation plus interest you’d have on a normal car loan over the same ownership period if you were to sell. Meanwhile traditional leases are far less flexible, often not even offering a buyout option, let alone one at a price guaranteed by contract.
The bad value is in wanting to drive a new vehicle. There’s practically no upside to buying new over used, even if it’s only 30k miles or so on it.
For EV’s specifically people also drastically underestimate the battery lifespan based on early gen Nissan Leaf’s and similar early vehicles lacking a true battery thermal management system. There are excellent deals to be had for 3-4yr old EVs.
But unfortunately when you look at the total cost of ownership the price premium you pay for an EV over it’s ICE equivalent here in the UK and the typical ownership period of 3-4 years due to the majority being “purchased” using PCP (personal contract purchase) that has a balloon payment at the end very few pay means most people will never actually make a saving.
I wouldn’t really blame the PCP. It’s not as predatory as it sounds at first, especially considering it uses the wording “balloon payment” for one of the options at the end of the term. The horrible value you’d get on a PCP is nearly the same as the depreciation plus interest you’d have on a normal car loan over the same ownership period if you were to sell. Meanwhile traditional leases are far less flexible, often not even offering a buyout option, let alone one at a price guaranteed by contract.
The bad value is in wanting to drive a new vehicle. There’s practically no upside to buying new over used, even if it’s only 30k miles or so on it.
For EV’s specifically people also drastically underestimate the battery lifespan based on early gen Nissan Leaf’s and similar early vehicles lacking a true battery thermal management system. There are excellent deals to be had for 3-4yr old EVs.