Rising fuel costs are forcing drivers to consider electric cars
Keeping your car on the road is becoming increasingly priceless, although there is a way to drastically reduce the cost. But there’s a catch.
With fuel costs rising to record highs, Australian motorists are considering ditching their current cars to save money.
New research from car subscription service Carbar has shown that fuel is the biggest ongoing cost for car owners. E10 and 91 RON unleaded fuel costs almost $1.90 per liter, while premium fuels are over $2.
On average, the survey found that motorists pay an average of about $2000 a year for fuel. This was more than the cost of depreciation ($1758), maintenance ($1024), insurance ($970), and registration ($925).
Two-thirds of all respondents stated that the rising fuel costs are a burden on their household budget.
The high running costs of petrol and diesel vehicles are prompting Australian buyers to consider switching to an electric vehicle.
Many Aussies said they would consider giving up their petrol/diesel cars and buying an electric car in the next two years.
However, the current high cost of electric cars would be a significant hurdle for many new car buyers.
Carbar boss Des Hang agrees that the cost of electric cars is a major obstacle.
“Rising petrol prices are clearly encouraging more Australians to look into electric vehicles. But with many electric vehicles still costing Australians over $40,000, there is some hesitation,” he said.
Australians will buy about 5,150 electric cars in 2021, according to the Federal Chamber of Automotive Industries. This is an increase of almost 200 percent compared to the previous year.
That number doesn’t include Tesla, which doesn’t publicly disclose its sales numbers but is estimated to have sold about 10,000 vehicles last year.
Hyundai’s Ioniq 5 has been named Car of the Year by News Corp, the first time the award has been given to an electric car.
Despite the sharp increase, electric cars still make up a small part of total sales. And the lack of emissions targets and government incentives has caused manufacturers to keep some of the best and most desirable new electric cars from the Australian market.
Volkswagen is one manufacturer that has prioritized markets like Europe for its range of new vehicles, including the cheaper ID.3 and the ID.4, which was named World Car of the Year.
The currently cheapest electric car in Australia is the MG ZS EV. The Chinese electric SUV is priced from US$44,990.
Australian company Carbar is giving Australians interested in an electric car a chance to get into one for less.
The subscription service gives owners access to an electric car for a set weekly fee that includes registration, insurance, maintenance, service and roadside assistance.
The weekly cost is high compared to leasing a gas-powered car, but the service gives users the ability to swap cars and there are no lock-in contracts, so you can cancel at any time.