December 20th, 2012
Do Electric Cars Really Save You Money?
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**Today’s guest post is contributed by Dale.**
With hybrid and electric cars becoming ever more popular, have you ever wondered if they really do save you as much money as some may think? The answer may surprise you.
Experts agree; savings may not be reached before average car ownership expires:
While hybrid and electric car sales have increased over 60 percent in the last year, they still have only captured less than three percent of the total car market as reported by Nick Bunkley of The New York Times. This may be due to the fact that what was once speculation now has data to back it up: It takes far too long for electric or hybrid car owners to realize savings.
James Johnson of Inquisitr.com explains, “The average car is driven for just six years before it’s traded out or replaced all together with another new vehicle.” Gas would have to reach eight dollars per gallon over that six year period to balance out the added cost of an electric car in saved gas money, according to data commissioned by automotive research website TrueCar.com for The New York Times. This is true for all but two electric car models.
“In fact,” Johnson continues, “TrueCar found that even if gas were to reach five dollars per gallon it would take the average American consumer more than a decade to realize enough savings to make their high value car purchase worth the acquisition.” Most people simply won’t have their car that long, not making an electric car a worthwhile investment.
Even still, there are two advantages:
- Some buyers enjoy the fact that once they pay for their car they don’t have to think of the ongoing cost of buying gas on a regular basis – to these people, saving money on gas is as important as saving money on the car itself.
- Some buyers feel that the environmental advantages outweigh the high purchase price of an electric or hybrid car – to these people, they’d rather save planet earth than their hard-earned money.
Whether you’re looking to buy a brand new electric car or a used traditional one, there are lenders looking to offer you car loans with the attractive interest rate and flexible terms you want. Find the new or used car loan that fits your lifestyle and your budget before you even go car shopping. And if you think you’ll stick with the car you have for a little while longer, you may want to consider an auto refinance to lower your monthly payments.
Dale Cooper has been writing about financial services and education for more than three years. He holds a B.A. in English and lives in Cleveland. In his spare time, Dale enjoys cooking and traveling.
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