How affordable are EV in 2022?
How affordable are EV in 2022?
Posted on June 23, 2022
If you have daydreamed about owning an EV but felt it was reserved for the independently wealthy, we have some good news. The prices of EVs have come down dramatically in the last few years and are now on par with what you would pay for a gas-powered vehicle.
There are many reasons why the prices of EVs have dropped. Our Acton car loans team will cover a few before we look at how you can realize your dream of owning an EV.
- Carmakers have received substantial support from Ottawa to streamline their EV production lines. This streamlining will allow a larger number of EVs to be massed produced. As the number of EVs increases, the cost per unit goes down.(economy of scale)
- The Federal Government of Canada has implemented rebates that make buying an EV easier on the wallet.
Benefits of owning an EV in Acton
The immediate benefit you will experience is the savings on fuel. Soaring gas prices make it hard for Canadians to commute to work and put food on the table.
Anyone holding on hope that gas prices will go back to the way it was before the pandemic, we have bad news for you; it won’t.
These high prices are not an anomaly caused by Russian aggression into Ukraine; the cause of these high prices is carbon taxes which are compounded by the rising price of oil denominated in U.S. Dollars.
The Alberta tar sands produce enough oil to supply Canada, but this oil is priced in U.S. dollars and needs to be shipped to refineries at high cost.
This is why the days of cheap gas are going away and won’t come back.
Financing EVs has become mainstream
When EVs first hit the Canadian market, only a select few finance companies would underwrite the loans.
The biggest issue was determining the resale value of the EV; this is no longer an issue as the used EV marketplace is starting to grow, and lenders are able to project depreciation which is vital when working out a car loan.
Don’t worry about depreciation, though, demand for cars is high, so your vehicle will preserve its value for years to come.
While financing EVs has become easier, you cannot secure a competitive loan on your own. This is where you need expert support if you want to come out ahead.
The only way to secure more competitive financing is by working with a dealership in your area. These dealerships already have access to all of the lenders that provide car loans in Acton, so you should have no problems getting a great deal.
Something the dealership will help you with is sending in the necessary forms, so you can take advantage of the rebates being offered by the government.
Even if you have credit issues or income that is not stable, you need to reach out for help today.
Gas prices are going to keep rising, and the only way you can save money while preserving your current standard of living is by getting an EV, so contact your local dealership now; this will be the best decision you can make in 2022.
If you need help or advice on anything to do with auto loans in Acton, contact Car Nation Canada today, we can help!