The Expert Podcast

So why are prices on EVs and used EVs coming down? Well, it's all about the battery. If you look at this report from CleanTechnica, EV battery prices are dropping a lot, and it's going to continue to drop a lot. Look at this chart. The battery is the most expensive part of a vehicle as an electric vehicle, and if the battery cost goes down, the whole vehicle goes down. It's kind of like the engine on a gasoline car; the engine is the most expensive part. The battery is the part on the EV that has the highest value. If you can get that cost down, which is what they're doing, not only will it bring the price down of new EVs, it'll bring the price down on used EVs but also the repair cost. So if you need to swap out a battery on a used EV, the battery is going to be a lot cheaper down the road.

So, if you're looking at options for a replacement vehicle, an additional vehicle, and you have ruled out electric vehicles, don't jump in, don't change your mind instantly, but at least keep an eye on the market to see if the newer versions and the cheaper prices have it to where it makes more sense. Maybe it's for a commuter vehicle, maybe it's for just around town or going to get groceries.

Don't overlook the charging cost. Find out what your electric company charges for electricity overnight rates because that's when you'll be charging and see if it would offset the gasoline that you would save by not having to put gas in a car, plus the time to stop at gas stations. Make sure you get a good battery checkup if you're going to buy a used one, and if you're going to buy a new one, make sure the range matches the most common types of routes and trips you'll be taking before you jump into an electric vehicle.