Top 10 Reasons Now is Time to Buy an EV

Are you in the market for a new car? Want a fun car to drive that will surprise your neighbours yet deliver the lowest operating cost? Then I have to tell you that with the current government rebates and newest selection of models, there’s never been a better time to buy an EV or Plug-In Hybrid. But first, I must clear away the FUD – Fear, Uncertainty, and Doubt – surrounding EVs.

Despite being a huge fan of electric vehicles, I will be the first to admit that EVs are not for everyone. By assessing their pros and cons, I hope to convince you that EVs can be the perfect second car for most multicar households. And if I can’t do that, I should at least get you to consider a Plug-In Hybrid as your main or second car.

Let’s start with the Top Ten Electric Vehicle Myths:

1. There aren’t enough charging stations – false
2. Range Anxiety – they don’t drive far enough on a charge – false
3. They are expensive – not anymore
4. They’re no fun to drive – false, they drive way better!
5. Nobody knows how to maintain them – false
6. Batteries need replacing – false
7. Batteries are expensive – not exactly
8. They’re all dinky golf carts – false
9. They’re not as safe as gas cars – false
10. They get free HOV lanes and special parking – TRUE in most cities!

Okay, so I cheated a bit, but in the rest of this post I will dispel these myths. Before I do, please allow me to clarify the difference between EVs and Plug-In Hybrids:

Electric Vehicles (EVs): These vehicles are powered only by on-board batteries that must be re-charged from plugging into the electricity grid. Some people refer to these as “pure EVs” or BEVs (Battery Electric Vehicles), and models available today in Canada include:

• BMW i3
• Ford Focus Electric
• Mercedes Smart ForTwo Electric
• Mitsubishi i-MiEV
• Nissan Leaf (pictured above)
• Tesla Model S

Plug-In Hybrids: These vehicles have two built-in power sources: an on-board battery (which must be charged by plugging it in) and a gasoline engine (which needs to be filled at a gas station). Such cars run on their batteries alone until drained, 20-60 km depending on the model, then switch to gasoline mode. Some people refer to these as “Extended Range Electric Vehicles” or PHEVs (Plug-In Hybrid Electric Vehicles). Models available today in Canada include:

• BMW i3 (with optional “Range Extender”)
• BMW i8
• Cadillac ELR
• Chevrolet Volt
• Ford C-Max Energi
• Ford Fusion Energi
• Porsche Panamera Plug-In
• Toyota Prius Plug-in

For clarity, I will stick with “EV” to describe the first group only and will always refer to the second group as “Plug-In Hybrids”. Now back to those myths…

1. There aren’t enough charging stations – false

You really only need access to just ONE charging station -- and that’s at your home, where it’s always available. Public charging stations are bonuses for longer trips.

Home residential (Level 2) units start at about $800 (before government rebates) and use the same type of wiring and circuit breakers as your electric stove. An electrician may install it in your garage or on the side of your house. With it you may conveniently plug in your EV overnight at home, and take advantage of the lowest time-of-use rates. The best part about home charging is you’ll never go to a gas station again!

While the number of public access charging stations is growing significantly, if you do not have the ability to charge at home, nor a guaranteed spot to charge at work, an EV is not for you.

2. Range Anxiety - they don’t drive far enough on a charge – false

“Range Anxiety” is the fear of running out of battery power before reaching a charging station in an EV. Unlike gas tanks that can be refilled in minutes at gas stations pretty much anywhere, charging stations can be few and far between, and can take 20 minutes (on rare Level 3 chargers) to hours (Level 2) to charge from empty, so running out of battery is a very real concern.

The key to dealing with this issue is to understand the true limits of different EVs and how they match your typical driving patterns. Maximum range can be as little as 120 km for models such as the reasonably-priced Mercedes Smart, Mitsubishi iMiEV and Nissan Leaf, or over 400 km for the premium-car class Tesla Model S.

When considering an EV, you need to fully understand your typical daily driving distances and for 85% of commuters 120 km is more than enough. If your typical daily return commute is longer than that, and you have regular access to charging stations at work, you could double that distance. On the few days per month or year that you know you need to drive long distances, swap cars with your spouse, or rent a gas powered vehicle.

Of course, consider a Plug-In Hybrid instead if such models will better suit your usual driving needs.

3. They are expensive – not anymore!

Let’s face it, all cars are expensive to buy and operate, but in terms of fuel costs, EVs really shine compared to gas powered cars when it comes to the cost per kilometer driven. At today’s rates in Ontario, EVs cost 1.5 to 3 cents per kilometer for electricity. Similarly sized gasoline vehicles will cost $.10-$.20 per kilometer for gasoline (currently north of $1.30 per litre). If you drive 20,000 km per year, that’s $300-$600 per year for the EV compared to $2000-$4000 per year for the gasoline vehicle. Those are incredible savings, especially when combined with purchase rebates described below.

It terms of purchase price the news only gets better for EVs, as prices have come down over the past three years. When EVs first hit the market in 2010-11 the price premium was significant. In order to encourage their adoption, many governments initiated rebates, and those rebates are still in place in most jurisdictions. For example, the Ontario government offers up to $8,500 in rebates depending on the size of the battery, which puts the purchase price of an electric Smart on par with its gasoline model. [Apply that rebate and you can buy an electric Mercedes Smart starting at $16,000; or a Nissan Leaf starting at $23,500, as of July 2014]

Rebates also apply to Plug-In Hybrids, but they are much lower due to the smaller sizes of their batteries.

When the Ontario program launched it had a target of 10,000 EVs, and as of this writing approximately 3,600 early adopters have taken advantage. But with ongoing decreases in MSRP and the whims of government programs, now would certainly be a great time to acquire an EV.

4. They’re no fun to drive – false, they drive way better!

One of the great falsehoods surrounding the first EVs was that they offered poor performance and were little fun to drive. Yet in general driving an EV can be more fun to drive than a gasoline car due to two important differences: weight and torque.

EVs weigh more because of their large battery packs, but depending on the model, result in lower centres of gravity. And electric motors deliver peak torque instantaneously, whereas gas engines need to speed up to their torque peaks.

Today, the Tesla Model S garners attention for its sub five second 0 to 100 km/h great handling, while BMW and Porsche now offer plug-ins. Even the smaller EVs offer surprising handling and acceleration relative to their gasoline powered peers.

5. Nobody knows how to maintain them – false

You may be hesitant to buy EVs because of their unfamiliar maintenance requirements. But here’s the kicker: EVs do not require most of the routine maintenance procedures and headaches associated with conventional gasoline automobiles.

EVs do not need oil changes, mufflers, tune-ups, etc. and because of their regenerative braking, may never need a brake job. Essentially, most electric vehicles need only windshield washer fluid, wiper, cabin air filter, and tire maintenance.

Because of their gasoline drive train components, Plug-In Hybrids still have maintenance schedules typical of conventional cars, but their service intervals are farther apart, reducing their maintenance costs.

6. Batteries need replacing – false

Two very important and genuine considerations about EVs are battery longevity and battery replacement costs. To help customers rest assured, most manufacturers guarantee their EV batteries for eight years, longer than most people will keep their cars. If you’re like me and tend to keep your cars longer than that, see below.

7. Batteries are expensive – not exactly

Although EV batteries were very expensive when EVs debuted, they’ve been dropping in price about 7% per year and the trend is expected to continue. McKinsey & Company and Navigant Research each issued reports that predict the price of batteries to drop by two thirds by 2020, which will lower the replacement battery pack’s cost should you need one out of warranty.

And Nissan just announced guaranteed pricing for out of warranty battery replacements that were much less than industry pundits predicted. With all the money you saved on gas, I believe you’ll have enough to buy two battery packs eight years from now.

8. They’re all dinky golf carts – false

Size, selection and availability have certainly hampered the adoption of EVs, but that’s changed.

Three years ago there was only one EV and one Plug-In Hybrid available in the Canadian market, but now we have the models listed at the beginning of this article, which include everything from a two seat Mercedes Smart to the premium-sized seven-seat Tesla Model S. And there are several new EVs including sport-utility vehicles already announced for the 2015 model year.

One of the ongoing market challenges from a consumer perspective is that no one manufacturer offers a complete range of plug-in vehicles from small to large, from basic to premium. This means that at the present time you just can’t walk into to your favorite dealer and be offered a selection of electric vehicles. If they don’t have an EV in your size, the salesperson will do their best to dissuade you from electric just to sell you any other car they carry. You have to be strong in your resolve to go electric!

You can see all the models virtually under one roof by starting your research at dedicated electric vehicle websites such as that of https://www.plugndrive.ca.

9. They’re not as safe as gas cars – false

There are many misperceptions as to the safety of EVs because of their battery packs. You may be asking “After all those media reports of laptop and cell phone batteries catching fire, doesn’t it make sense to be concerned about EV batteries?”

While consumer electronics and some EVs use lithium-ion batteries, other than sharing their basic chemistries their respective implementations are very different. EVs incorporates sophisticated battery management hardware and software systems which optimize battery longevity, performance, and safety. These systems monitor and control charge and discharge rates, minimum and maximum charges and operating temperatures. Hence every manufacturer is able to warranty their systems for at least eight years, which we’ll never see with our electronics.

But EVs are like any other car, with the very real risk of collisions. Rest assured, in July 2014, the National Fire Protection Association’s Casey Grant told the Financial Post “We’ve been watching quite closely and electric vehicles in fact have had a very good track record. There’s nothing that suggests a greater risk than for gasoline vehicles.”

10. EVs get free HOV lanes and special parking – TRUE in most cities!

Two more perks worth considering: EVs are permitted to use High Occupancy Vehicle (HOV) lanes and designated preferred parking spaces in many jurisdictions. Won’t these perks make you the envy of your neighbours and coworkers?

Conclusion

If you’re in the market for a new car, you now have the knowledge to separate the noise from the buzz to make an educated selection. With the current government rebates and newest selection of models, there’s never been a better time to buy an EV or Plug-In Hybrid.