What is Driving the Shift To Electric Vehicles?

Viraf Baliwalla, Car Smart Eletter, 2022-11-04, 2022-11-04

(Back to list)

As the auto industry is aggressively pushing towards fully electric vehicles, it is critical to understand what is driving this shift and who stands to benefit the most for each category of vehicle. At the first level of electric, there was the hybrid vehicle whose technology has been with us since the early 2000’s with the Toyota Prius. These vehicles have a regenerative braking system that puts some charge back into the battery while braking and uses gas when extra power is needed or the battery needs additional “juice” to recharge. Then came the plug-in hybrid which added the ability to plug the vehicle into a standard or fast wall charger. Both the standard hybrid and plug-in hybrid cost more initially to purchase and for repairs than their fully gas-powered counterparts, however the more time spent running on the battery, the less one paid for gas at the pump. Finally, the fully electric mass-market vehicle, pioneered by Elon Musk with Tesla, has seen a dramatic increase in popularity and adoption. These vehicles use a combination of technologies to keep batteries charged and vehicles moving. The clearest advantages are that there are relatively few moving parts or oil so less maintenance is required, no fuel emissions at all, and the cost of electricity today is typically a lot less than the cost of gas. At first glance, it seems obvious that consumers will benefit with cleaner air and money saved. However, a deeper analysis may prove otherwise. Let’s look at the two benefits just mentioned:

In our opinion, despite a higher upfront cost of the vehicle, more expensive repair costs down the road when needed, and a high cost to replace the batteries, we will have the satisfaction short term of overall lower operating and maintenance costs from driving any level of electric vehicle. Plus, it’s cool! However, in our humble opinion, we also think that the costs a few years down the road will normalize as the dust settles and hybrid and electric vehicles become more the norm and gas-powered vehicles are no longer being manufactured. It’s not that far away. We’ll just become used to a new normal at which time, overall total cost of ownership will be about the same. If you are thinking of buying or selling a vehicle, remember that our advisory services are always free at Automall Network. Even in today’s market, we are still saving money for our clients and more importantly helping them get their hands on a vehicle faster.

(Back to list)
© Automall Network Inc., 2017. Helping car buyers and sellers since 1999.
OMVIC Auto Dealer License #: 4989752.
Member: Used Car Dealers Association.
Privacy Policy

Automall Network Inc is a BBB Accredited Business. Click for the BBB Business Review of Automall Network