The Real Cost of Electric Vehicles
Electric Vehicles still have a long way to go to become an affordable option for many drivers.
In a recent study by Self Financial, Inc. researchers found that, when considering the cost to purchase, it takes about 23 years of ownership before the cost of an EV becomes lower than a standard vehicle.
Until they become more cost-effective, EVs remain a tough sell.
A Country Powered by Electricity
As U.S. states and countries around the world continue to move toward a future powered by electricity, many in the automotive industry may be wondering if it remains lucrative to make investments in the future of their fueling facilities.
The price of lithium batteries is decreasing, bringing EV’s closer to their gas-powered counterparts in terms of affordability. And recently, innovations in battery technology are helping to increase longevity and decrease charge time.
Using America’s most popular gas-powered car, the Toyota Rav 4, the most popular electric car, Tesla’s Model 3 Standard Range, and the most popular premium-gas vehicle with a similar price tag to the Tesla Model 3, the BMW 3 Series, Self concluded that while the annual running cost of EVs is less than internal combustion engines, when including purchase an EV is more expensive per year.
The average annual cost to run an electric vehicle in the USA is $2,722. When factoring in purchase cost, the average cost of an EV is $9,406 each year.
The average annual cost to run a gas vehicle in the USA is $3,356. When factoring in purchase cost, the average cost of a gas vehicle is $7,952 each year.
Plus, the limited options for charging during long-distance drives, the degradation of battery capacity (most current EV batteries lose nearly a third of their capacity within a decade), and safety concerns remain to keep the market share of EVs at around 2%.
Fuel Retailers and the Cost of EVs
For many of our partners, electric vehicles do not pose a threat to the retail fuel facility market. But, in order to prepare for a more profound use of gas-alternatives, it’s important to remain relevant to your current customers.
Increasing service stalls, improving traffic flow, and offering modern updates help to retain repeat customers. Just as important is the quality of your product. Ensuring your fuel system is well maintained and pumping efficiently means you remain in front of mind for that next necessary fill-up.