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Electric Vehicle University - 220a ECONOMICS OF EV OWNERSHIP

THE CENTRAL QUESTION ...
What are the key factors that I should consider when I try to cost justify the purchase of an EV??

COURSE ABSTRACT
An introduction to the economics of EV ownership is presented.
The EV purchase premium is discussed along with the qualitative examination of the factors that must be considered as an economic analysis is conducted. Fuel and maintenance costs, including battery replacement issues, are explored. To obtain a copy of the EVU study guide for this and other available EVU courses, please complete the form on this page.

Course level: Intermediate

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Electric Vehicle University - 220a ECONOMICS OF EV OWNERSHIP

  1. 1. 1
  2. 2. 2 EV Economics— Basic Concepts, part 1 EV-220a This course is presented as part of Evannex University—a free, open learning environment that presents concise, video-based mini-courses for those who have interest in electric vehicles (EVs) …
  3. 3. The truth of it all … “It’s all well and good to buy an electric vehicle to save the planet or because it’s the latest cool thing, but what about your pocketbook? Unfortunately at the moment electric vehicles cost more to purchase than equivalent gasoline or diesel powered ones. Altruism goes only so far, and many people are unwilling to spend much more to purchase a different vehicle just because it is cleaner. You can argue that this is short sighted because we all need to take strong action to avert various crises, but these people have a valid point about the economics of the situation.” David Herron, http://greentransportation.info/life- cycle/cheaper-to-drive.html#sthash.lpg125QW.dpuf)
  4. 4. The EV Purchase Premium  It is true that EV buyers pay a premium for their automobiles  But … that premium can be offset by the long term costs savings associated with owning an EV  But is the offset real?  Key factors:  length of ownership  the cost of gas and electricity during the term of ownership 0 20,000 40,000 60,000 80,000 Small BEV Large BEV PHEV ICE equiv cost EV Premium
  5. 5. In honesty …  Not every EV buyer does a detailed economic analysis.  In general, car purchases combine quantitative and qualitative analysis  The purchase/lease of an EV is no different  The qualitative component may dictate the buying decision
  6. 6. Having said that …  It’s worth running the numbers  But what numbers do we run and how do we generate them?  compare the ownership costs of an EV against the ownership costs an an equivalent ICE vehicle  Fuel costs (ICE vehicle) ~ 25 %  Maintenance cost (ICE vehicle) ~ 8 %
  7. 7. Apples to Apples  Compare the EV you’re considering to an ICE vehicle that is similar in:  Size (both passenger and storage capacity)  Performance (acceleration, handling)  Interior and exterior aesthetic  Nissan Leaf  Nissan Versa  Chevy Volt  Chevy Cruse  Volkswagen eGolf  Golf  Tesla Model S  BMW 7 series or Mercedes S series
  8. 8. 8 … a free study guide for all EVU mini-courses is available for download from our website … For a complete list of mini- courses and the study guide, visit: www.evannex.com

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