The world is becoming a lot greener and many people are making changes to their lifestyles to reduce their environmental impact. Transport is widely known to be one of the highest contributors to GHG emissions, which has led many manufacturers to focus their efforts on electric engine vehicles and many motorists are now making the switch. So, what does this mean financially and is now a smart time to switch?
Insurance
One of the most overlooked aspects of switching to an electric car is what this means for insurance. Insurance is a major cost for motorists to cover and one that is unavoidable, but prices can vary greatly depending on many factors. The cost to insure an electric car has been higher in recent years because vehicle insurance companies were cautious regarding the cost of repairing these vehicles. Now that electric cars are more widespread and there is more data available, the costs are falling but can still be more expensive as they are high-value vehicles. This is why you should always shop around for car insurance premiums to find the right policy.
Car Prices
Many people are put off by the idea of an electric car because they can be expensive to purchase even with the plug-in car grant. Although this is true, you will find that they are becoming more affordable with greater availability and it is said that they will be cheaper to produce than internal combustion cars by 2027. The current pre-tax retail price of an electric is £28,914 while it is just £15,920 for an equivalent electric car. It is predicted that both will cost around £16,262 in 2026. Additionally, internal combustion engines are proven to cost more in the long run.
Fuel
Of course, it is the cost-saving that electric cars provide in terms of fuel that makes them a smart financial investment. This is particularly true right now with the soaring fuel costs that are unlikely to come back down anytime soon. Charging an electric will be cheaper than filling up at the petrol station when you consider all of the variables, such as the energy prices and fuel economy for electric cars.
Road Tax
Another important consideration is road tax. Road tax is calculated by the amount of CO2 emitted, which means that pure battery electric vehicles are exempt from road tax and plug-in hybrids pay a reduced tax.
As you can see, buying an electric car is currently more expensive but you must view it as a long-term investment that will help you to make big savings over the long term. Additionally, switching is a great way to reduce your impact and there are now many excellent models to choose from.
Combustion vs Electric Engine: What`s More Financially Viable?
The world is becoming a lot greener and many people are making changes to their lifestyles to reduce their environmental impact. Transport is widely known to be one of the highest contributors to GHG emissions, which has led many manufacturers to focus their efforts on electric vehicles and many motorists are now making the switch. So, what does this mean financially and is now a smart time to switch?
Insurance
One of the most overlooked aspects of switching to an electric car is what this means for insurance. Insurance is a major cost for motorists to cover and one that is unavoidable, but prices can vary greatly depending on many factors. The cost to insure an electric car has been higher in recent years because vehicle insurance companies were cautious regarding the cost of repairing these vehicles. Now that electric cars are more widespread and there is more data available, the costs are falling but can still be more expensive as they are high-value vehicles. This is why you should always shop around for car insurance premiums to find the right policy.
Car Prices
Many people are put off by the idea of an electric car because they can be expensive to purchase even with the plug-in car grant. Although this is true, you will find that they are becoming more affordable with greater availability and it is said that they will be cheaper to produce than internal combustion cars by 2027. The current pre-tax retail price of an electric is £28,914 while it is just £15,920 for an equivalent electric car. It is predicted that both will cost around £16,262 in 2026. Additionally, internal combustion engines are proven to cost more in the long run.
Fuel
Of course, it is the cost-saving that electric cars provide in terms of fuel that makes them a smart financial investment. This is particularly true right now with the soaring fuel costs that are unlikely to come back down anytime soon. Charging an electric will be cheaper than filling up at the petrol station when you consider all of the variables, such as the energy prices and fuel economy for electric cars.
Road Tax
Another important consideration is road tax. Road tax is calculated by the amount of CO2 emitted, which means that pure battery electric vehicles are exempt from road tax and plug-in hybrids pay a reduced tax.
As you can see, buying an electric car is currently more expensive but you must view it as a long-term investment that will help you to make big savings over the long term. Additionally, switching is a great way to reduce your impact and there are now many excellent models to choose from.