Are Electric Cars more cost-effective?

Here at That’s My Spot, 

We love technological innovation.  

We love simplifying daily tasks.

We love seamless and stress-free parking.

We love reducing our carbon footprint!

And we incorporate these passions into our products. 

Take our Automatic bollards for example. Did you know that an average driver wastes 17 hours a year just cruising for parking, which costs an average of US$345 in fuel while doing so, and adding a WHOPPING 55 kg of CO2 of carbon emissions to the environment! Which has a huge negative impact on our planet.   

Through parking space management, our automatic bollards ensure parking spaces are properly allocated and reserved for drivers, and reduce cruising for parking. That ticks the box of enhancing sustainability.  

Our next priority is to ensure we utilise technology to be as ergonomic and seamless as possible for drivers. Our automatic bollards achieve that as well, since a driver can operate them from the comfort of their car.  There’s no need to get in out of your car, or manually lower or raise the bollard.  We’ve thought about all these things with our automatic bollards to make your parking experience seamless and stress-free.

While we always stay ahead with innovation and sustainability for our products, we also love other innovative products in the transport sector. One of the most exciting global trends and innovations is the adoption of Electric Vehicles (EVs). EVs pave the way for sustainability efforts, by eliminating carbon emissions that have such a negative impact on our environment and climate change. 

EV adoption is right around the corner, but why the reluctance from some?

Is it a question of cost? Are electric vehicles more affordable than petrol vehicles? Does the higher upfront cost justify the cost-savings and environmental impact benefits? 

The Upfront Costs of the Electric Vehicle 

As new disruptive tech, and in a much earlier stage in their life cycle, EVs are more expensive to buy than regular fuel-vehicles. As more and more models trickle onto Aussie roads, EVs will gradually become more affordable. On top of that, the Federal and state governments are offering subsidies to encourage adoption of EVs. The NSW government offers $3000 in rebates for the first 25,000 new EVs. Another incentive from the NSW government is to abolish stamp duty, which can save EV buyers up to $5,540.

On top of that, there are more and more EV charging stations popping up around all the capital cities in Australia, like Sydney, Melbourne, Canberra, Brisbane, Adelaide, Perth, and then on top of that the regional centres. Indeed the NSW government has just announced new funding for EV charging stations in regional areas.

Comparing the cheapest EV currently in Australia to its similar petrol counterpart, the difference is quite significant. The EV model, MG Motor’s ZS EV SUV, goes for a grand $44,990. It’s a price tag that can be a little daunting. Especially when you look at the comparable petrol model, the MG ZS in petrol which comes in at a much more modest $21,990. With such a dramatic difference in price range, it may paint the EV car as the far more luxurious and wealthy choice. Why are EV cars so much pricier to purchase? It comes down stock and demand. Due to electric vehicles being new to the market, there is less of a demand for them. With less demand, EV parts and essentials are not being produced en masse. When parts are produced in low volumes, the price for those parts gets higher. 

The Running Costs of the Electric Vehicle 

While the purchase of an EV is less affordable than petrol vehicles, electric models start to see their cost-effective victories when it comes to road use. An EV is around 70% cheaper to run than an equivalent petrol or diesel car, bringing in savings of around $2,100. And with the recent rapid increase in the price of petrol or diesel, these savings will just get larger. The Australian Electric Vehicle Council has calculated these savings by running the average km’s driven by Australians. While petrol of diesel drivers can expect to pay an average of $2.11 per litre at current inflated prices, meaning a tank costs around $80, an EV will only cost around $30-40 for a full charge giving you the same number of kilometres. But EV charging can get even cheaper than that if the driver has a solar panel and stored electricity at their own home. 

Are Electric Vehicles the more Affordable Choice? 

When it comes to the very first purchase, current petrol or diesel vehicles tend to be cheaper. But this is changing. And with the recent hike in fuel prices, the demand for EVs is increasing too rapidly for supply to meet it. For most EVs now, you need to pre-order them 12 months in advance. When it comes to running costs, the EV is the easy winner. Giving the EV the biggest edge comes down to their environmental benefits, and how they are the solution to our carbon crisis.