For new cars, especially with the tax credit (which most americans qualify for), EVs are cheaper. That's not even factoring in maintenance costs over 5 years nor savings from charging at home (of course not everyone can charge at home).
I'd consider an EV for my daily commute if I could buy a new one for $10K. I think that's a reasonable price for a small car that has maybe a 100 mile range.
But automakers are offering $50K cars and above that don't fully replace gas cars. No thanks.
The sticker price is just the "obvious" price you see when it comes to owning a vehicle. But everything else still matters, routine maintenance and gas alike. Ignoring it only sets yourself up for being surprised when those bills come due.
> I'd consider an EV for my daily commute if I could buy a new one for $10K.
I'd consider an ICE vehicle if I could buy a new one for $10K. Have a suggestion?
People who like to stand out buy big cars. Big cars make people in small cars feel unsafe. So people replace their small cars with big cars. So, people in big cars buy bigger cars.....and so on.
So now every car has to have more 'safety'. Maybe if the car hitting me wasn't 5000lbs, at chest level and didn't accelerate like a bullet..... I wouldn't need more 'safety'. So now every one has bigger, "safer" and more expensive cars....... all while American road deaths keep growing with no limits in sight.
One day I will see a Ford-150 bed used for pickup truck tasks. Today is not that day.
I looked at EVERY used car in a 100 mile radius on every platform you can think of and the 2013 RAV4 with 105,000 miles at 15k hit the dealer lot the night before I purchased (they had multiple calls for that vehicle while I was filling out paperwork). Its because all the old people sold off there late 90's and 2000's cars that there STILL are no used cars anymore that aren't absolute junk (155k mileage plus junk selling for 15k - 20k). This lets dealerships sell new cars & trucks for way, way too much. If Cash for Clunkers never happened, used cars would be the competition for new cars like the Toyota Camry which are uncomfortable, basic vehicles but which set the pricing floor for the other manufacturers vehicle lines. No competition so set it at a high price point marketing it as new even though the rest of it is junk and then you can charge a premium on oyher vehicle options. (Hate the Canry but I love Toyota vehicles don't get me wrong).
All us poor people who just want a to work and back vehicle & who would buy off craigslist from private sellers don't have a market anymore and have to go dealerships. Pickups are overpriced I'll agree, and are faux status symbols, but the used market itself reaked havoc on trucks too.
Iirc the cheapest new car in the US market then was the Versa. And it was not $5k.
Maybe it was closer to 2010? Wouldn’t have been earlier.
Dealerships do sell under sticker with some regularity. Or they used to, LOL.
[edit] after some googling, I think they were two-door base-model (very base) Chevy Aveos. But I could have that wrong.
Even with this, a new Aveo for $12k in 2010 would now be ~$17k with inflation. New cars today seem to be around $17k and that includes the Versa and the Mirage. Of course wages haven't risen with inflation but that's another can of worms.
No, but any ICE vehicle will not have the limitations of an EV. I was saying I might accept those if it were cheap enough.
12,000 miles / 25mpg * $5/gallon = $2400
Maintenance is, at a very high estimate, $1000 per year, and that's paying a shop for everything - far less if I did it myself
Payments on a 5 year loan at 6% for a $40K EV (such as the Tesla 3) is $773/month or 9276/yr
On my local Craigslist I can find my vehicle, one year older but significantly lower mileage (85K) for $18000. I can find my vehicle but with more miles (222K) for $4000 (admittedly that sounds low and I have suspicions) or my vehicle with slightly higher mileage (115K) but in a higher trim for $11K.
You'll forgive me for continuing to drive my car or for buying an exact replacement rather than rushing to buy an EV.
It seems like it's you who's ignoring upcoming bills, by ignoring data:
My SO managed to run out of gas twice since she hated filling up on the way home, and forgot to check on the way out.
To her, the utility of being able to charge our BEV at home is immense.
I'm willing to bet she isn't that dumb.
I will admit that I ran a car out of gas once in the last 40 years: driving to Flagstaff AZ in a Prius there aren't many gas stations and I ignored the reserve light and the beep because I thought I could make it. Nope! 5 miles short. Maybe the 3000' grade I had to climb just before had some influence. However... never again. OTOH, that Prius that ran out of gas traveled several thousand miles over the years at over 90mph across the West, getting ~40mpg which works out to ~400 mile range. That right there is the entire argument, done.
That said, most of the utility comes from not having to spend time stopping by a gas station to fill up. Just park in the garage and spend about 10 seconds plugging in the car, and it's filled up in the morning ready to go.
Do people who think the only use of a vehicle is the home-work-supplies circuit? Don't you ever take a weekend off and go out of town? You really want to deal with the whole rental car scenario when you're supposed to be off? Or, oh well, I'm just gonna commit to spending a good chunk of my time on this vacation sitting around twiddling my thumbs at a charging station. I got an acquaintance who drove a decaying Tesla with <200 mile range from Atlanta to NYC and back and then bragged to me "it wasn't that bad". Yeah, I was polite.
Lotsa magical thinking going on here. And I haven't even pointed out that in vast swathes of the country the rental car option isn't even remotely convenient.
In an EV, that's ~11 hours on day 1, charge up at the hotel, and do one 15 minute stop on day 2. Before I had an EV, I'd do the same thing, just with ~10 hours on day 1 and my stop on day 2 might be at a different place.
But this is traveling for leisure with family. It might be different if I were really desperate to get there fast. I'd never rent a gas car to save the couple of hours, but also arrive much more tired.
I do agree, though, that there’s some novelty risk but (a) my numbers only include gas (and I’m not factoring my solar savings in at all because I ran the numbers before I installed solar) and (b) I’m spending quite a bit every year to maintain my Odyssey and basically $0 to maintain my Model 3 (only exception is I’ve changed the tires once, but I’ve gone through a couple sets of van tires in the same time period for a similar total expenditure). I think that I’d come out ahead even if I had to replace the battery (or sold the car when this is needed). Also, the depreciation on my Tesla over the last four years is much more in my favor than the van’s depreciation in the same time.
The 3 and Y seem to be doing better, as well as S/X after 2016, but those are still fairly new.
RepairPal says the average annual cost to maintain a Model 3 is twice that of a Honda Civic.
The only maintenance my Camry will need for the next decade or so that does not exist in Tesla is regular fluid changes which amortize to about $200 per year
Ps in SF Bay Area and don’t qualify for tax incentives
The math is skewed even further once you add the extra $500 you pay for CA annual registration for an EV vs. Hybrid (personal experience, Mach-E vs. Accord Hybrid).
Definitely it's massively less compelling in areas with extremely high electricity costs. That's pretty much as expensive as electricity gets in North America, isn't it? I think it's significantly more compelling basically anywhere else. E.g. in Ontario where I live, if you're set up appropriately and charge between 11pm and 7am it's $0.028/kWh (CAD), i.e. less than 3 cents per kWh, or roughly 1/35th the price you're paying.
If I've done my math right, that's works out to be less than 2$ USD per 1000km? A difference of 108$/1000km is 1728$/year for the statistically average-driving Ontarian. Adds up pretty fast!
I live in Ventura County and the cheapest my electricity gets is around 33 cents per kwh. During peak it's a whopping 60 cents per kwh.
I also assume that chart includes baseline credits and averages out the tiers - your first kwh is cheaper than your 600th kwh. Any brand new EV charging will be charged at your top rates and be more expensive than what those averages represents pretty much everywhere in the US.
If you have an EV (or some other devices), you can qualify for the TOU-D-PRIME plan which gets you $0.23/kWh[1]; at this rate, for my car usage patterns, the Tesla Model 3 is a clear win over any car more than $25k or so. If you have solar, you can drive the prices even further down (I offset basically all of my 2022 bill, but 2023 was cloudier and rainier than typical and so I'm doing worse this year).
[1]: https://www.sce.com/residential/rates/Time-Of-Use-Residentia...
Here the EV time of use rate is 50-60 cents per kWh between 3pm and midnight and 34 cents the rest of the day.
Without spending another 10-20k on Solar, EV is a losing proposition at these rates.
In California of all places
I stop work at 5pm so I can power down my computer before electricity gets expensive.
And 8pm works great for us because in summer it can be 70 degrees overnight, and the kids start going to bed at 8pm so I can cool down the house a bit without paying crazy prices for that.
I do a lot of thermostat trickery in the summer. During the day we set it to 76, from 4-5pm set it down to 72 (to avoid running in the expensive hours), then we raise it to 78 from 5-8pm, then we set it down to 74 at 8pm.
Even though I can afford it I've never bought new car. Call me lucky but I did not feel like I was paying for somebody else's problems either. All my cars worked fine for me. Some maintenance and repairs but nothing major / expensive. For example used Grand Caravan I paid $5K for on the auction cost me another $1K to put in proper order and then served me faithfully 10 years. Only got rid of it because the rust had taken the best of it.
Yes, if other people have to contribute their money to the purchase of your new car, it's cheaper for you.
>That's not even factoring in maintenance costs over 5 years
Well, the data says that Teslas have some of the highest costs of ownership in the first five years.
Links please? I know a lot of Tesla owners and they have all said differently.
I think the issue is largely around having to adjust the mindset to plan in advance.
For the roadtrip scenario, it might be better to just rent a vehicle for a week. For transporting large or heavy items, renting a truck beats owning one.
I’d love a cheap EV as a second/commuter car but nobody will give me one, and my crappy old Passat still works.
There are services like Turo, where you know the exact car you're getting, but, sadly, they're far from universally available. And it's pricier, of course.
All rental agencies surely know what fleet they have - typically it's as uniform as possible, to make the maintenance easier. Yet, it's not exactly unusual to see that a particular location has a fleet of entirely different make than they had listed on the website. Or, e.g. I know a place that doesn't have "compact" cars (or have so few of them I've never seen one on the lot), and just automatically "upgrades" everyone to "mid-size" - no clue why, they're a good (aka not scammy or too blatantly overpriced) company otherwise.
My only guess is that no one complains or cares about it.
Obviously, if all you care about is getting from point A to point B somehow then you're probably don't care much.
However, different cars have different characteristics, such as safety ratings (how likely you're to stay alive if you crash is important factor for some people), instrument clusters (my personal pet peeve - most cars have very poor UI/UX), rear window and mirror usefulness (in some you can get a clear view, in some you can barely see if someone's directly behind you or not), and all sorts of "luxuries" such as additional convex mirrors, backup camera or smartphone integration (CarPlay/Android Auto).
All those things - save for safety ratings - are quite subjective, so while some folks may just shrug and wonder how those matter, they make a lot of difference for others. The difference between a car that can drive and a car than you can drive pleasantly (or confidently) is probably significant.
But maybe I've also been spoiled by German car rental places — literally every single car I got here in the past ~5 years has had CarPlay, backup cameras, etc.
And I'd care about all of the above if I were to _buy_ a car, but for a week (or two) long trip, I genuinely can't imagine caring.
(Though, I guess, I am quite opinionated when it comes to picking my computers and phones, etc; and if I had to use a loaner Windows PC for a week I'd probably be mad too. I guess people can have that kind of preferences in cars?)j
I charged the company back via my credit card provider, and have never even considered doing business with that company again.
If gas were much more expensive, it'd be much easier to sell people on EV's, but since there's not a huge difference in operating expenses between an EV and ICE car, why wouldn't people stick with the ICE car to meet 100% of their needs instead of an EV that meets 90% of their needs?
If the USA had a robust charging network for all cars (not just Teslas), then it'd be a different matter but I've regularly encountered broken chargers (shown as operational in the app) as well as long lines for chargers (at 20-30 minutes per car, even a few cars waiting in front of you makes for a long wait).
I thought I'd have traded in our second car (a Hybrid, not a plug-in) for a BEV by now, but have run into enough charging difficulties on long trips to make me hold on to it. Renting an ICE car for long trips isn't really a good option since it's 30 minutes to the nearest car rental place and they have no parking, so it means my wife and I have to drive an hour to pick up the car and bring it back home and may the same trip after we get back from our trip.
I walk the dog through a strip mall parking lot every day. There are some U-Haul rental vans that are always there. So pretty clearly, someone is doing daily rentals on a permanent basis. The prices are painted right on the vans: $19.95 / day plus mileage.
(Or maybe they just bought the vans from U-Haul and never repainted them? Interesting question. But U-Haul has a box in the strip mall for dropping off your keys, so I suspect they *are* rentals.)
I was thinking of doing a comparison between actually buying or leasing a van vs. paying the daily rental fee. Could there be an economic inefficiency where it's cheaper to rent every day than buy? I'd need to know the year of the van, for one thing.- rentals for the roadtrips cost a lot (about 1.5-2k p/w for a SUV like an X5), and those cars are still poorly equipped. It ruins the fun of a roadtrip if the car audio sucks or the windshield is made of cheapest, thinnest glass. I never knew car companies sell premium vehicles with such low trims. Its a hassle too as the rental companies around where I live examine the car like they were buying it from me. One has to interact with various people and spend the time, and its not always an enjoyable experience, - rentals for hauling stuff are perfectly ok even for weekly use. I'd still love the luxury of owning a toyota proace full time, but there is less of a reason to own sth like this for me.
It would be some effort to figure out why they're doing it, so I haven't done so.
Wait! I've got it: U-Haul is just parking their rental vans there instead of their own lot. So the vans are actually NOT rented at the moment?
Stay tuned.
Today I saw a sign above the dropbox: "please park your returned trucks <in the lot>"
So I think what's happening is: U-Haul keeps the vans in the strip mall parking lot. (Do they have to pay the mall for that? Who knows?)
Possibly some of the mall tenants rent it occasionally, and this lets them get the van right at their place of business, instead of having to go somewhere and pick it up.
Maybe the keys are always left in the van! I could test that, but I don't want to get in trouble for car theft. Maybe U-Haul doesn't have to worry about someone stealing it, since they could have a locator device in it.
It's never going to be cheaper to rent daily than to buy. Renting daily has you paying the amortised purchase cost and a little extra for the costs of the rental provider (real-estate, offices, employees), and then a little more for the profit of the rental provider.
If the rental provider charges only what the amortised purchase cost is, they'll be out of business in a few days, if not hours.
The fact is, they are doing it. You're right, there might be some good explanation, but just dismissing the fact is never a good look.
I didn't make any statement about whether or not they are doing it, I pointed out that it costs more to do so. That's the fact in this case: the selling price of a non-loss-leader item can't be lower than the cost of providing it!
That there are people doing it is no indication that it is at all cost-effective to do. They may have some good reason for paying more (poor credit so cannot buy a vehicle, need the "daily" for only 3 months, it's a temporary solution while their own vehicle is being repaired, etc).
The fact is, it costs more to rent daily than to simply buy. The theory you have is that it must be more cost-effective to rent daily than to buy.
Are you seriously claiming that "U-Haul is running a profit" is just a theory?
> I'm the one with an unexplained fact.
The explanation is not going to be "It's cheaper to rent than to buy", if you're looking at periods that ownership generally runs for.
"It's unexplained" does not mean "It's cheaper".
I believe that when U-Haul (and other rental companies) sell their old vehicles, they remove or paint over the business-related markings first.
Sure it works if you're doing those trip once ever year or two. But if you do 1 or 2 road trips per year? Or more?
It's much more convenient just to have the vehicle in the first place. Plus you get the benfits of having it all the time.
It's a more difficult issue for very long range drives where an ICEs full range is required to get to the next gas station.
My edge cases come up fairly frequently and I don't really have a good fall back for them i could spend a huge amount of money or time to do the 50 mile trips via uber or transit. Or, I could own a hybrid. I could do something similar with less reliability for the 300 mile trip. Or I could own a hybrid. In both cases, i could keep an app that tells me where the charge stations are and account for any possible needed charging... or I could just own a hybrid and gas up at any random station I pass in 5 mins.
This is the problem of EVs. Yeah edge cases, but a lot of people can have their edge cases come up fairly frequently. And worse this changes over time. People like to plan for probably outcomes over the life of the vehicle. It's not strange to think you might a few hours a handful of times a year. The more people you need to transport with you the more alternative travel methods and the uncertainty of the charge network starts to matter.