Financial considerations and electric cars

Gas prices have steadily increased in recent months, putting a pinch on consumers.

Given how expensive gasoline is, some are turning to electric automobiles — not just cars, but also trucks, delivery vans and other vehicles. That said, before buying an electric car, there are important financial considerations.

First, if you want to use an electric vehicle, you’re going to need to charge it. This means you’ll typically have to pay for fuel, and ultimately, the cost power a vehicle can vary dramatically depending on local electricity prices.

That said, you can get a good grasp on how much you’ll have to spend charging your car by looking at the kilowatt-hours per 100 miles. This outlines the fuel efficiency of an electric or hybrid car. A Tesla Model 3, for example, needs 25 kilowatt-hours (kWh) per 100 miles. With kWh in hand, you can calculate the cost to charge your vehicle.

Fuel costs aren’t the only factor to consider with electric cars. Generally speaking, electric vehicles don’t break down as often as traditional gasoline automobiles. This is due, in part, to the fact that electric power trains have fewer moving parts. You also don’t have to worry about spark plugs and oil changes.

That said, the battery will eventually wear out, and replacing it can cost north of $5,000. You may also need to install a charging station at your house, which can cost thousands of dollars. And if gasoline prices decline while electricity prices climb, the cost gap between combustion engines and electric drive trains would narrow.