Four ways to afford an electric car (and four economic benefits of electric driving) – London Business News

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

But as you may already know, electric cars don’t come cheap in today’s automotive market, at least not for the mainstream consumer! That’s why many governments and automakers have spent sleepless nights trying to model ways to make electric vehicles more affordable.

Read on to learn how to make your electric vehicle purchase more forgiving on your bank account, starting with the economic benefits of driving an electric car.

Four ways to afford an electric car

1. Look for car financing

Governments and lenders in many countries and states have partnered with the automotive industry to develop electric vehicle grants and financing schemes aimed at making electric car ownership easier and more affordable for everyone.

Such proposals would require electric vehicle buyers to put down a 20% deposit and then pay monthly payments over about 36 months for the car. Many individual lenders also offer so-called green car loans, specifically designed to finance the purchase of electric vehicles.

2. Opt for a used EV rather than a new one

Of course, the idea of ​​enjoying a road trip in a brand new car is very satisfying. But that might not be a choice if you don’t have enough credit or money to finance an EV.

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

3. Car leasing and subscriptions

If the price of a new or used electric vehicle is over the top for you, that doesn’t necessarily mean you can’t drive one. You can always explore other alternatives like leasing or electric car subscription service.

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

4. Consider using a car pay sacrifice program to get an EV

Many employers in modern society allow their employees to deposit a percentage of their salary into a savings account for car financing. If you run a small or medium-sized business, a wage sacrifice program can have several advantages for your employees when aiming to finance electric vehicles.

For example, they might be able to get affordable electric vehicles and get tax benefits while enjoying other benefits of owning an electric vehicle.

As the clock ticks on, electric vehicles are expected to phase out their conventionally powered counterparts. They may not be as affordable today, but they will certainly get cheaper as we approach 2040, the year to watch for the shift to an all-electric automotive industry worldwide.

Nevertheless, the few tips above can help you acquire an electric vehicle without necessarily spending an arm and a leg.

Four economic advantages of electric driving

Driving an electric vehicle has several advantages in terms of reducing costs. Among the most visible are:

No fuel and refueling costs

Gasoline and fuel can get very expensive for anyone at this age and day. However, if you drive an electric vehicle, you can expect to spend less, if anything, on what typically keeps the engine running.

Reduced maintenance costs

Since major components that a typical car needs for normal maintenance have been removed, you’ll have fewer maintenance costs to manage when driving an electric vehicle.

Fiscal advantages

There are government incentives in place for anyone who decides to own an electric car. Indeed, electric vehicles are environmentally friendly as they do not emit carbon dioxide or other harmful gases into the atmosphere. However, these are only available if you are a resident of the state implementing the relevant incentives.

In the UK, for example, owners of electric vehicles are eligible for subsidies according to an article by John Saunders; and they don’t pay road taxes.

Low health costs

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