Summary
- EVs are becoming more affordable compared to gas-powered vehicles
- EVs usually have a lower total cost of ownership compared to ICE vehicles
- The cost to replace an EV battery can range from $10,000 to $20,000
- EV batteries are becoming more long-lasting, reducing the likelihood of needing a replacement
- The overall cost of ownership for an EV, including potential battery replacement, is still likely to be cheaper than an ICE vehicle
Article
Electric vehicles (EVs) are becoming more affordable, with the cost to purchase an EV comparable to that of a gas-powered vehicle. Debate on social media platforms like Reddit often compares the total cost of ownership of EVs and internal combustion engine (ICE) vehicles, with EVs usually emerging as the cheaper option. However, the cost of replacing an EV’s battery remains a concern for some potential car buyers. With new EV batteries costing between $10,000 and $20,000, the question arises whether EVs are a better deal in the long run, especially when factoring in the cost of battery replacement.
Despite the significant cost of replacing an EV battery, advancements in battery technology have led to longer-lasting batteries. While most car manufacturers offer warranties for EV batteries of eight years or 100,000 miles, advancements in battery technology suggest longer warranties of 150,000 miles or more in the near future. This, coupled with the average car owner keeping their vehicle for around 12 years, means that the need for battery replacement may not arise for most EV owners. Additionally, best practices such as minimizing fast charging and avoiding extreme temperatures can help extend the life of an EV battery.
The cost of EV batteries has decreased over time, with the cost per kilowatt-hour dropping from $1,355 in 2008 to $153 in 2022. Industry trends indicate a shift towards longer-lasting batteries, making battery replacement a thing of the past. Factors such as the make, model, size of the battery, labor costs, and battery recycling contribute to the overall cost of replacing an EV battery. Despite these factors, the cost of acquiring an EV and maintaining it over its lifetime is often more cost-effective than a gas-powered vehicle, even with the potential cost of battery replacement considered.
While traditional car insurance policies may not cover the cost of replacing an EV battery, some insurers offer specific policies for electric vehicles. EV insurance policies can cost up to 20% more than insurance for gas-powered vehicles but may come with discounts for EV drivers. EV battery warranties vary by manufacturer, with some requiring complete failure before replacement and others covering replacement if capacity falls below a certain percentage during the warranty period. Overall, the benefits of EVs, including lower maintenance costs and environmental impact, make them a worthwhile investment, especially with the available incentives for EV purchases.
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