Home Business Insights & Advice Four ways to afford an electric car (and four cost-saving benefits of driving electric)

Four ways to afford an electric car (and four cost-saving benefits of driving electric)

by John Saunders
16th Sep 22 4:09 pm

With every tick of the clock, electric cars are becoming more and more appealing to the planet as a necessity rather than a luxury. More and more people are realizing the importance of reducing their carbon footprint in different aspects of life, including driving. This, consequently, has put electric vehicles (EVs) in the spotlight as the best alternative to conventional fossil fuel combustion engine cars.

But as you might already know, electric cars don’t come cheap in today’s automotive market, at least not to the ordinary consumer! This is why many governments and motor vehicle manufacturers have had sleepless nights trying to model ways to make EVs more affordable.

Read on for ways to make your EV purchase more forgiving to your bank account, starting with the cost-saving benefits of driving an electric car.

Four ways to afford an electric car

1. Seek car financing 

Governments and lenders in many countries and states have partnered up with the automotive industry to develop electric vehicle grants and financing plans geared to make owning an electric car easier and more affordable for all.

Such proposals would require EV buyers to put down a 20 percent deposit, and then pay monthly payments over 36 or so months for the car. Many individual lenders also provide what is termed green auto loans, specifically curated to finance electric vehicle purchases.

2. Opt for a used instead of a brand new EV 

Sure, the thought of enjoying a drive away in a brand-new car is quite fulfilling. But that might not be much of a choice if you don’t have enough credit or money upfront to finance an EV.

Even if you have some decent cash stashed somewhere, opting for a used EV can be a more clever choice if you don’t want to deplete your savings. It will probably be a cheaper alternative if you plan to buy an EV during the ongoing microchip shortage wave.

3. Leasing and car subscriptions 

If the price tag for a new or used EV is above the roof for you, it doesn’t necessarily mean that you can’t drive one. You can still explore other alternatives like leasing or electric car subscription service.

While the former lets you keep the car for as long as you can pay for it, the latter allows you to choose from a range of electric vehicles for as long as your subscription is active.

4. Consider using a car salary sacrifice scheme to get an EV 

Many employers in modern society allow their employees to contribute a percentage of their salary to a savings account aimed at car financing. If you run a small to medium enterprise a salary sacrifice scheme can have several benefits for your employees when aimed at financing electric vehicles.

For instance, they might be able to get affordable EVs and obtain tax benefits while still enjoying other benefits that come with owning an electric vehicle.

As the clock ticks into the future, electric vehicles are expected to out phase their conventional engine counterparts. They might not be so affordable today, but they’ll definitely become cheaper as we approach 2040 is the year to look out for as far as switching to a fully EV automotive industry is concerned around the globe.

Nonetheless, the above few tips can help you acquire an EV ride without necessarily spending an arm and a leg.

Four cost-saving benefits of driving electric

Driving an electric vehicle comes with several cost-saving benefits. Some of the most conspicuous ones include:

No expenses on gas and fueling

Gas and fuel can become very expensive for anyone at this age and day. If you are driving an electric vehicle, however, you can expect to spend less if not nothing on what typically keeps the engine running

Lower maintenance costs

Because the main components that a typical car requires for normal upkeep have been removed, you will have lower maintenance costs to deal with when driving an EV.

Tax benefits

There are government incentives in place for anyone who decides to own an electric car. This is because EVs are environmentally friendly as they don’t emit carbon dioxide or other harmful gasses to the atmosphere. However, these are only available if you are a resident of the state that is implementing the relevant incentives.

In the UK, for instance, electric vehicle owners are entitled to grants according to a piece by John Saunders; and they don’t pay road taxes.

Low health costs

Electric cars are almost free from all the major ailments that plague normal cars and motorcycles. Being a healthier individual and moving towards a greener future is worth it.

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