Shopping for an EV? This is what you need to bear in mind

Posted by Admin October 18, 2024 Shopping

In the first part of our new series, The Switch, we look at what you need to consider about buying an electric car before you start browsing vehicles.

Welcome to The Switch, Euronews Next’s new mobility series for people considering making the switch to an EV.

As the pace of electrification quickens amid a growing climate crisis and an uncertain economic outlook, we’ll be your companion as you make the transition from your fossil-fuelled car to electric.

Each week, we’ll offer guidance and insights from industry experts as well as aim to demystify the process and dispel misinformation.

As this week’s Paris Motor Show highlights the latest in electric vehicle (EV) innovation, it’s a timely opportunity for prospective EV buyers to weigh their options before making the switch.

Navigating the electric car market requires a careful balance of practical factors – daily commuting needs, charging infrastructure, and battery warranties – alongside personal preferences and financing options.

So, what questions do you need to ask yourself before getting carried away on the showroom floor?

1. What are my specific needs and preferences?

First and foremost, you should start by considering your daily driving habits and lifestyle requirements.

The choice of EV depends on factors such as commute distance, type of driving (city, motorway, or rural), and specific features you might need, such as Isofix seating for small children, boot space for sports equipment, or off-road capabilities.

New EVs offer ranges between 300 km and 600 km, with many models achieving over 400 km on a single charge but the actual range can vary depending on weather, vehicle and battery size, and driving style.

If your daily commute is relatively short, a model with a smaller and more affordable battery may suffice. For longer commutes, or if you frequently take road trips, a larger battery and longer range may be more suitable.

For those living in rural areas, a vehicle with all-wheel or four-wheel drive, and potentially towing capabilities, might be necessary.

2. What charging options are available?

Charging is a crucial aspect of owning an electric vehicle, and understanding your options can simplify the transition to electric driving.

If you have the ability to install a home charger, this is usually the most convenient and cost-effective solution in the long-term.

Charging at home overnight not only ensures you start each day with a full battery but also allows you to take advantage of reduced electricity rates.

For those without access to home charging, the public charging infrastructure is rapidly improving across Europe. Charging stations can be found in convenient locations such as supermarkets, motorway service areas, and train stations.

Familiarising yourself with the charging options near you, as well as along any planned travel routes, can prevent potential issues during longer trips.

Workplace charging is also becoming more common, with many employers installing EV chargers. Additionally, hotels are increasingly providing charging stations for guests, making it easier to charge while travelling.

Programmes like the EU Just Transition Fund are also supporting the rollout of the public charging infrastructure.

3. What incentives or grants are available for purchasing an EV?

Government incentives play a vital role in making electric vehicles more accessible by lowering the upfront cost.

These incentives often take the form of purchase grants, tax exemptions, and financial assistance and aim to reduce the price disparity between electric and internal combustion engine (ICE, or petrol and diesel) cars.

For example, Ireland provides up to €3,500 for new electric cars priced under €60,000, with additional vehicle registration tax relief of up to €5,000. France offers an ecological bonus of up to €7,000 for low-emission vehicles, while in Norway a 25 per cent VAT exemption applies to the first 500,000 kroner (€42,507) of the price of a new EV.

In the Netherlands, buyers of new and used EVs can claim subsidies of up to €2,950 and €2,000 respectively.

However, the landscape is shifting, as some countries scale back their support.

Germany ended its EV incentives in 2023, and Sweden announced a phase-out by the end of 2022, reflecting a trend toward winding down government subsidies.

4. What about battery warranties?

The battery is one of the most expensive components of an electric vehicle but new EV batteries come with warranties lasting between 8 to 10 years or up to 160,000 km.

These warranties typically guarantee a minimum capacity level, usually around 70 per cent of the original capacity of the battery.

5. How should I pay for an EV?

Choosing the right financing method depends on your financial situation and driving needs.

Firstly, a bank loan would provide full ownership but often come with higher monthly payments and interest rates.

Alternatively, dealer financing can be convenient and often accompanied by promotional rates, but may not always offer the best terms.

Another option is manufacturer financing, offering competitive rates and special incentives for specific models, but is brand-limited.

Personal Contract Purchase (PCP) features lower monthly payments with the option to buy the car at the end or move on to another contract, but be aware that strict mileage limits apply.

Finally, hire purchase would mean that ownership of the vehicle transfers after the last instalment with no mileage restrictions, but the car cannot be sold until fully paid off.