Electric car versus internal combustion engine cars – which is cheaper?

Electric car versus internal combustion engine cars – which is cheaper? “>

Today, electric mobility is the most pressing topic in the automotive world, but the question remains – are battery-powered electric vehicles (BEVs) not only a good choice ecologically, but also economically? A simple analysis of the total cost of use shows that the cost of modern battery-powered electric vehicles is comparable to that of new cars with internal combustion engines, and that in regions where state aid is provided, using a new electric car is actually cheaper than a diesel or even petrol car.

Total running costs (TCO – total cost of ownership) has been in use for some time and is the most important criterion for companies around the world when deciding whether or not to buy a particular car. When calculating the total cost of use, not only the purchase price of the car is taken into account, but also the costs related to use (operating costs), financing costs and residual value (value of the vehicle at the end of the life cycle). According to a survey of current electric car owners in the Baltics, 75% have considered the total cost of ownership before purchasing an electric car, while 74% have seen a reduction in total cost after switching from fuel to electricity for daily commuting.

In the absence of State aid in the form of tax rebates or purchase subsidies, the main savings provided by electric cars result from lower operating costs. In fact, assuming that current electricity prices do not rise significantly, electric car owners save at least EUR 1 000 for every 30 000 kilometers, just by taking into account fuel costs. Because electric motors are much simpler than internal combustion engines with fewer moving parts, maintenance costs are also significantly lower. For example, if someone compared a gasoline engine equipped Golf 8 maintenance costs with the recently launched Volkswagen ID.3, savings of more than 50% per 30,000 km. In addition, it is complemented by the fact that electric cars do not have registration and license plate fees. Therefore, if you compare the operating cost savings for modern electric cars such as Volkswagen ID.3 or Volkswagen e-up! with a car with an internal combustion engine such as Golf 8, then the savings after 90,000 km would be about 3,700 euros with ID.3 and 3,900 euros with e-up!.

The residual value is associated with the greatest uncertainty. Electric cars have simply not been available for so long in the current political environment in which CO₂ Reducing emissions is a priority so that we can provide accurate calculations. Forecasts suggest that the residual value of electric cars is likely to continue to improve and outpace the residual value of internal combustion engine cars, as has already been found in a number of markets. Growing demand for electric cars, lower operating costs, extended battery warranty (up to eight years or 160,000 km Volkswagen cars) helps to further improve the residual value of electric cars. Current estimates indicate that the residual value for modern internal combustion cars will be 35% and for electric cars 40% after 90,000 km (in about five years).

Electric car prices are also continuing to improve. A quick comparison between the first generation e-Golf (starting price: 38,800 euros, mileage: 140 km), second generation e-Golf (starting price: 32 960 euros, mileage: 230 km) and the new ID.3 (starting price: below 30,000 euros, mileage: 330 km) demonstrates a clear trend of falling prices, but also an increase in car mileage, durability and performance. Further price improvements lack long-term government support, including subsidies and tax rebates. In fact, when support such as that available in Lithuania and more recently in Estonia is at least € 4,000 to € 5,000, then an electric car such as ID.3 becomes cheaper than a comparable internal combustion engine car, for example Golf 8, even if only the price of the car is taken into account.

It is therefore safe to assume that the argument that there is no economic justification for electric cars is no longer true. When the concept of total running costs is applied, the costs of electric and petrol cars are very similar, as higher sales prices are offset by lower operating costs. However, State aid would ensure that the total cost of electric cars is cheaper than a petrol car. So why not choose a battery-powered electric car as your next car?

The survey also indicates that even today, the majority of battery-powered electric vehicle owners (71%) believe that it is cheaper and more convenient to drive an electric car in the Baltic States. At the same time, the survey found significant dissatisfaction (68% of respondents) with the size, versatility and availability of the current charging network. Users lack solutions for multi-storey homes, supermarkets and workplaces, DC chargers for charging several cars at the same time and better availability of charging points in the country. In fact, improvements to the charging network are cited by current BEV owners as the most important criterion (57%) for increasing the number of electric cars in the Baltics. The importance of continued government support is mentioned as the second most important criterion (29%). More than half of BEV users admit that switching from an internal combustion engine car to an electric car has improved their attitude towards the environment, as well as encouraged more environmentally friendly thinking.

By Volkswagen:

Volkswagen is one of the world ‘s most successful large – scale automakers. The company has factories in 14 countries that produce cars for customers in more than 150 markets. Volkswagen In 2019, 6.3 million cars were delivered worldwide, which is a record volume and 0.5% higher than the previous year’s result. For customers in Latvia Volkswagen Last year, 2,499 cars were delivered, while the brand’s market share was 15.4%. Volkswagen the vision is “Move people and move them forward”. That way TRANSFORM 2025+ The strategy focuses on a global model initiative by which the company plans to drive innovation, technology and quality in the large-scale segment. The latest goal is to ensure mobility for all without harmful emissions at affordable prices, thanks to the recently developed, fully electric ID. for the car family. In September 2019, it was the first to have its world premiere ID. car – ID.3, which is the first fully electric CO₂ neutral car. First ID.3 the cars will be delivered to customers already in the summer of 2020.