Survey: EV Buyers Scoff at Price Tags Over $25,000
December 2, 2013 12:26 PM
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They also don't want to pay much more than a dollar for a public quick charge
A new survey shows that many consumers are not willing to pay over $25,000 for an electric vehicle (EV) or plug-in hybrid.
Colorado-based consulting firm
recently released the results of its Electric Vehicle Consumer Survey, which showed 71 percent of consumers surveyed wouldn’t buy EVs priced over $25,000. It also showed that 43 percent wouldn't spend over $20,000 for a new EV or plug-in hybrid.
The survey holds results from 1,084 participants total.
Those in the 43 percent not willing to spend over $20,000 will likely have a more difficult time in the EV market, but some vehicles -- like the all-electric Nissan Leaf -- fall into the sub-$25,000 category that would appeal to most consumers.
The 2013 Nissan Leaf saw a $6,400 U.S. price cut earlier this year to $29,650. After the $7,500 federal tax credit is applied, it falls at $22,150.
This price drop
helped the Leaf quite a bit
this year when it comes to sales. Through October, U.S. sales of the Leaf are more than two-and-a-half times higher than the year-ago period with 18,078 units sold.
The survey also noted that 67 percent of participants have a positive opinion on hybrids in general while 61 percent have favorable views on EVs.
As far as specific models, the
had the highest familiarity with 44 percent of respondents saying that they're "somewhat familiar" with it while only 6 percent said they're "extremely familiar." The Leaf, on the other hand, had 31 percent who were "somewhat familiar" while less than 5 percent were "extremely familiar."
The survey also said that about 40 percent showed interest in public charging stations, but over half said they would use a quick charge unit only
if it was free
or less than $1, while just 16 percent would be willing to spend more than $2 for a 15-minute charge.
Navigant Research predicts that 30,195 EVs and 59,106 plug-in hybrids will ship this year. By the end of the decade, it expects shipments of 130,641 EVs and 210,772 plug-in hybrids.
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12/3/2013 3:19:43 AM
Bill people $3 per 50 miles, i.e. cheaper than a Prius' gas bill,
Depreciation is higher than that. If a $25,000 car is worth $5,000 after you've put 100,000 miles on it, then it depreciates at $0.20 per mile, or $10 for 50 miles. (It's actually a bit more complicated since the depreciation isn't linear, but you get the point.) Then you have to factor in maintenance and insurance.
I agree with what you're saying, but I think if done properly it would just confuse people more. They're going to end up comparing the energy+depreciation cost per mile for EVs, vs just the energy cost per mile for gasoline. Because somehow the cost of using a car is "free" if you own it. That's actually the exact comparison which makes the limited range and long recharge times of EVs a non-factor. All you do is buy an EV for your daily driving, and the few times you need to make a long trip you rent a gasoline car. But people always leave out the depreciation cost of using their personal vehicle on a long trip when comparing to the cost of renting, making renting look more expensive when it's frequently cheaper.
So you're right, but the way most people think about cost for depreciating assets is so screwed up it's not going to work. You're not gonna get a fair comparison out of it any way you cut it.
12/4/2013 10:59:34 AM
I guess that works out for the bulk of auto buyers on the depreciation. In my case I paid $18,000 for my truck in 1996 and now it is worth $2000 with 245,000 miles on it.
Depreciation per mile driven works out to $0.065/mile which is far less than $0.20/mile. It also come down to less than $1000 per year depreciation because I have had it so long, and if I keep it to 20 years like I plan then it will be even better since the assessed value has actually started to go up instead of down due to inflation.
Energy cost per mile would be very complicated to work out since when I bought the truck gas was selling for less than $1/gallon.
Repair cost has been a grand total of about $2000 for 245,000 miles or $0.008/mile. I wonder how the repair cost will average out for current EVs once battery replacements get factored in?
12/4/2013 3:36:42 PM
I think most folks misunderstand how Lithium batteries work. The reason why most consumer lithium batteries fail is that they are overheated, completely discharged or charged all the time. Most of the better EV's like the Volt use a liquid cooling / heating system to prevent the battery from going to extremes and they also don't use the entire battery. The Volt's pack is 16 kwh but you're only allowed to use 10.5 kwh of it.
I have a Sony Z series laptop that has the ability to stop charging the lithium battery at 50% and I leave it plugged in all the time. After 3 years, my battery wear is at 1%. In comparison my older Asus laptop which didn't have this feature had about 10% battery wear after 3 years.
I wouldn't be surprised if the Volt's battery pack will last it at least 20 years, and even then it can be recycled and used in other applications. A Volt battery pack can technically power an entire house.
12/7/2013 2:27:25 AM
Depreciation is there for all cars, so I don't see what point you're trying to prove. In the long term, EVs should depreciate
, because used car buyers will also see the value in not needing gas, having low maintenance costs, and being more reliable, so they'll pay more.
The point of my suggestion is to create an equivalency that a consumer can easily relate to. A Prius needs ~1 gallon ($3.50-4.00 today, probably more tomorrow) per 50 miles. Most economy cars need 1.5 gal.
That costs a lot more than $3.
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