Monday, May 27, 2024
Insights

Adopting EVs as prices become more affordable

Electric cars have experienced a significant surge in popularity over the past decade. While they’ve always been praised for their environmental benefits, early adopters often faced high costs, making them less accessible to the average consumer.

However, the landscape is shifting dramatically. Thanks to advancements in technology, increased competition, and supportive government policies, electric cars are finally becoming affordable, with numerous entry-level options available.

Falling Prices for New Electric Vehicles

One of the most significant changes in the EV market is the decrease in prices for new models. The new BYD Dolphin, for instance, is currently available in the UK for £269 per month with a £269 deposit for a brand-new car. This pricing makes it cheaper than many average petrol cars, such as the Ford Focus. Tesla has also confirmed that it will launch an affordable EV. This shift indicates a broader trend in which manufacturers introduce electric models at competitive prices, aiming to capture a larger market share.

It isn’t just the initial outlay costs that have decreased either; other costs associated with EVs are also lower. Typically, EVs have a lower servicing cost because they have fewer moving parts than traditional engines. This reduces the need for maintenance expenses, specifically in Tesla models. According to Fleet News and an analysis conducted by Cap HPI, Tesla’s servicing costs are among the lowest, presenting a significant advantage to business fleet customers and individuals.

Reduced Running Costs

Another key factor contributing to the affordability of electric cars is the reduction in running costs. Of course, EVs don’t require petrol or diesel, offering EV owners significant savings as fuel prices continue to rise. More and more countries are also now providing incentives to encourage the adoption of electric vehicles. In the UK, for example, EVs are exempt from road tax, and savings like these can add up over time.

Electric charging costs are generally lower than the equivalent fuel costs, too, and with more charging stations being built, the convenience of owning an electric car is also improving. Many public charging stations now offer free or reduced-cost charging, further enhancing EVs’ affordability. Many UK energy providers now have specific EV tariffs to help cut the cost of at-home charging. There are now more affordable at-home chargers on the market, too, with chargers such as the evec VEC01 priced at £769.99, including installation, so uptake of at-home charging is also on the rise, along with the increase in the need for these EV tariffs.

Second-Hand Market Growth

As electric cars become more affordable, we’re also seeing a shift in the second-hand car market. As those who adopted EVs early on are now looking to upgrade to newer models, more used electric vehicles are entering the market, which in turn is leading to a substantial drop in price. EV Powered reported that sales of used electric cars jumped by more than two-thirds in the first three months of 2024 as more buyers sought second-hand EVs. EVs were the fastest growing sector in the used market and recorded their best first quarter since before the pandemic. Overall, the used market rose by 6.5%, with 1,967,923 cars finding new owners. This growth of the second-hand market allows those more budget-conscious to purchase electric vehicles at a fraction of the cost of new ones, making electric cars accessible to a broader demographic.

A Wider Choice of Affordable EVs

As time goes on, we’re also seeing an encouraging development in the range of electric cars becoming available. Manufacturers like Dacia, renowned for their budget-friendly models, have now entered the electric vehicle market with options like the Duster, catering to those drivers who seek reliability and affordability. More choices now mean that consumers no longer have to sacrifice features or style for affordability; electric cars are now becoming available to meet both of these needs without breaking the bank.

Overall, the evolving EV market landscape shows how the rapid progress in technology and manufacturers’ concerted efforts are helping make EVs accessible to everyone. Now is an excellent time to take advantage of these EV offers and transition to electric. With transitions becoming easier, electric vehicles are no longer just the future; they are the present and more accessible than ever before.

Tom Bloor

Tom Bloor is the brains behind evec and conceived the idea for the company in early 2022. Combining his love of cars with his knowledge of the appliances market via his work with OEM, Tom identified a gap in the market for the growth of EVs. Tom is a young, ambitious and determined individual who is committed to making a difference. The values of sustainability and environmental protection are at the core of his green future ambition. He is committed to net zero and has confidence in the switch to electric vehicles. He believes that these measures are essential to ensure a sustainable future for generations to come.