Why Buying an Electric Vehicle Right Now Doesn’t Make Financial Sense
“Electric vehicles are in intense demand right now in the U.S. and elsewhere in the world, and the prices are being really pushed up. And from an economic standpoint, today, buying an electric vehicle, well, it doesn’t make dollars and sense.”
According to a study from vehicle research site iSeeCars, electric car prices were 54.3% higher in July 2022 than the same month a year ago. Prices for gas-powered cars rose by just 10.1% during that period.
Clark says the relative impracticality of EVs is also a reason not to buy one right now, citing their short driving ranges (except for Tesla) and the lack of available charging stations. But he says that's going to change: "The charging networks, that are so not sufficient for non-Tesla vehicles, are actually going to get their act together. We're kind of in a pioneering phase."
Wait To Buy … but for How Long?
Clark says he expects EV prices to decrease as automakers work to meet the demand.
“In ’23 and ’24, we’re going to see a lot more models coming into the marketplace. The prices of electric vehicles are headed down, not up,” he says.
But until we get there, here's his advice, which applies to buying any vehicle, electric or otherwise:
This simple maintenance schedule can help keep your car on the road. If you're not comfortable doing the work yourself, find a trustworthy mechanic.
Here Are the Exceptions
Clark notes a couple of it might make sense to buy an electric vehicle right now: if you’re trying to lower the cost of your commute or just want to run errands around town.
In that case, Clark says: "Buy an older one that doesn't have a lot of range on it … . Then you've got a putt-putt-mobile for local commuting."
Final Thoughts
While it’s true that electric vehicles can be big money savers when it comes to gas, Clark cautions against buying one at this moment. “Prices are crazy,” he says.
Although the past couple of years has been a rough road for car buyers, Clark says it's best to hold off if you can.
“In the scheme of life, a couple of years of this disruption is not significant, but if you’re looking at a vehicle right now new or used, it’s very significant. And the answer is to wait — but especially with electric vehicles,” he says.
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