One of the proposed draws to Electric Vehicles is that are less expensive to drive. Not surprisingly when Joe Biden drove up the price of gas, this was true … however, the cost to fuel electric vehicles in the United States is higher than gas-powered cars for the first time in 18 months, a consulting company, Anderson Economic Group (AEG) said in an analysis. (AEG is a consulting firm based in Michigan that offers research and consulting in economics, valuation, market analysis, and public policy, according to the company’s website.)
The fuel costs in the analysis are based on real-world U.S. driving conditions including the cost of underlying energy, state taxes charged for road maintenance, the cost of operating a pump or charger, and the cost to drive to a fueling station, AEG said.
From The Epoch Times:
“In Q4 2022, typical mid-priced ICE (Internal Combustion Engine) car drivers paid about $11.29 to fuel their vehicles for 100 miles of driving. That cost was around $0.31 cheaper than the amount paid by mid-priced EV drivers charging mostly at home, and over $3 less than the cost borne by comparable EV drivers charging commercially,” Anderson Economic Group (AEG) said in an analysis.
However, luxury EVs still enjoy a cost advantage against their gas-powered counterparts. It costs luxury EV owners $12.4 to drive every 100 miles on average if they charge their cars mostly at home or $15.95 if they charge their cars mostly at commercial charger stations in the 4th quarter of 2022. Meanwhile, the fuel costs for luxury gas-powered cars are $19.96 per 100 miles on average.
Eventually we all know that when things get back to normal, the price of gas will go down further. As time goes on will these Q4 comparisons continue to favor gas-powered vehicles?
Another interesting tidbit from that same article is that insurance carriers are sending low-mileage Tesla Model Ys to salvage auctions because they are too expensive to repair.
Of more than 120 Model Ys that were totaled after collisions, then listed at auction in December and early January, the vast majority had fewer than 10,000 miles on the odometer, according to a Reuters analysis based on online data from Copart and IAA, the two largest salvage auction houses in the United States.
Insurance companies typically “total” a vehicle—which means to scrap it and reimburse the owner—when the estimated cost of repair is deemed too high.
Remember insurance companies are in business to make money. Is this totaling of low mileage Teslas going to be a trend, and will this mean that insurance on Teslas will go up even higher?.
2/7/23