Why are Electric Cars so Expensive? Should You Buy Them?

Electric cars are becoming more popular on global roads today than ever. However, ever thought, Why are electric cars so expensive? One of the most important reasons is that they have become expensive is because the battery of electric cars costs more than regular batteries. Why? Let’s learn in detail.

Why are Electric Car Batteries Expensive? 

Most of us love to have electric cars. But what’s more important is to know the feature of the electric car battery that makes it costly and enables us to know why electric cars are so expensive indeed. 

These batteries are rechargeable Lithium-ion batteries

The electric car batteries are built with lithium-ion, similar to our laptops and mobiles. But they are much bigger than the ones on laptops and mobile.

Further, this will enable the batteries to deliver more energy and performance. Further, we will get to know why electric cars are so expensive.

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The cell of the batteries consists of good-quality cathodes

Compared to regular car batteries, the electric car batteries provided by electric car companies like Tesla come with high-quality cathodes. These cathodes help store and release the charge of the electric cars when required. Moreover, the materials used to make these, like cobalt, nickel, lithium, and manganese, are equally expensive. 

Rechargeable batteries

Apart from being built with Lithium-ion, EV batteries are rechargeable ones that we can recharge once drained out, which makes them expensive as well. Furthermore, there are exclusive charging stations where we can recharge our electric car batteries as and when needed.

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Other reasons why electric cars are expensive

Apart from its expensive Lithium-ion batteries, there are other reasons why electric cars are so expensive today. They are:

Cost of research

Developing EV cars are one heck of a task, especially if it has to be made from scratch.

Because every year, the features are updated, and for the same, the electric vehicle production companies have to research a lot, which can be extremely expensive. 

Lack of competition

As we have learned in Microeconomics, the lesser the competition, the more the prices of the cars. Moreover, when more manufacturers enter the market, the prices will be. Hence, an Electric vehicle is not an actual cost but a market force.

Further, one of the reasons why are electric cars so expensive.

Production economies of scale

The more the production of something happens, the more it is affordable to make similar products. Likewise, regular vehicles are produced more than the EV around the globe, and this is why electric cars are so expensive than regular cars. 

Insurance costs are higher

Since EVs are extremely expensive because their parts, including the lithium battery, are costly. This, in turn, can make the insurance costs higher, unlike regular vehicles. For instance, replacing the EV battery alone can cost around $ 15000. Now, we can get an idea of how much the Insurance of an EV car can cost. 

Should we buy them?

• Now, we have seen the reasons and the most important feature of electric cars that makes them expensive. We will move on to “should we buy an EV? Is it the right time? Most people have these questions racing in their minds while thinking of getting an automobile of their own. 

• Moreover, the choice to buy an electric vehicle is an intense and personal matter that we should approach with caution and care. However, the convenience of not going to a gas station can make the pricey tag of the EV worthwhile for some because regular cars require us to get to the nearest gas station to fill the fuel.
• But, Electric cars or vehicles come with a rechargeable Lithium-ion battery that you can recharge and use at your convenience. Furthermore, EV lending companies have come up with innovative Hybrid or plug-in cars that work as partial EVs that are fuel efficient and lighter to your pockets compared to EVs.  
• Moreover, we cannot deny the possibility of the US auto market shifting towards Electric cars. This is because of the record high prices for regular vehicles and, most of all, the rise in gas prices. Further, EVs have helped the US auto market to make up for the loss. 
• Thus, we can buy electric cars if we have the proper budget. However, it depends upon our convenience and choice.

Are Electric cars sustainable?

The most important question we all have about EVs is, “Are they sustainable”? Driving an electric car is not as colorful as we might think. Because the EV parts are expensive, replacing the same parts is even more expensive. Although we can save the additional costs when it comes to maintenance of the EV, long-term maintenance of Electric cars is a concern for many. 

Why? Because repairing and replacing different parts of the EV can empty your pockets. Many countries offer EV tax credits. However, while applying for the same, ensure that the state or country offers the same.  

Questions to consider while buying an electric vehicle

Before we plan to buy an electric vehicle, there are specific questions we can consider. They are:

Is it the right time to buy an electric vehicle?

Buying an electrical car depends upon our convenience. If we are satisfied with 'not going to the gas station,' you can buy the same. But, if you are not convenient, then go for regular cars.

Are electric cars expensive?

Yes, electric cars are expensive, and replacing their parts or insuring the same can empty your pockets in no time.

Is it worth getting an Electric car now?

Yes, it is worth getting an Electric car now because more companies have come up with EVs, and there are chances of a fall in prices.

Are insuring EVs more costly than regular gas-filled cars?

Yes, getting Insurance for EVs is extremely expensive, as replacing their parts can be costly and complex. This can lead to an increase in EV insurance costs.

Are EVs good for the environment?

Yes, EVs are good for the environment because they help reduce carbon footprints. Further, this can help in saving the environment.

Conclusion

Thus, Electric cars are the best choice for people willing to compromise their earnings for convenience. They are expensive because their parts are expensive, and repairing or replacing the same can be costly. However, EVs are the optimum choice if you wish to contribute to preserving Planet Earth.