April 20, 2019

YOUR NEXT CAR WILL BE A VOLT:

Electric Cars Will Cost Less Than Gas Cars Within 3 Years: There are fewer and fewer reasons left to buy a gas-powered car. (Minda Zetlin, 4/20/19, Inc)

The next time you go shopping for a car, especially if it's a new car, you will seriously consider an electric vehicle. Why? Because you're a logical person, and an EV will be the logical choice--less expensive to buy, less expensive to own, better for the environment, and way more fun to drive.

One of the biggest reasons car buyers choose a gas car over an electric one is simple economics. Electric cars cost considerably more to buy (or lease) than gas ones. Consider the 2018 Ford Focus. The manufacturer's suggested retail price starts at $17,950. The 2018 Ford Focus Electric MSRP starts at $29,120. Even counting the $7,500 federal tax credit for buying an EV, the electric model costs substantially more. And if you pay less than $7,500 in federal income tax, your tax credit will be lower as well.  

But that price difference is going away, and sooner than you think. A Bloomberg analyst reported last week that the "crossover point" at which electric vehicles will become less expensive to buy than gas ones will come in three years, in 2022. A couple of years ago, analysts thought that day wouldn't come until 2026. What's changed since then is battery technology--batteries are getting smaller and less expensive all the time. If that trend continues, the crossover point could come even sooner.

Transformative innovation always happens faster than predicted. Economics forces it.

Posted by at April 20, 2019 8:14 AM

  

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