twscrap
Well-known member
I think you may be giving folks far too much credit. I've had more discussions with folks than I can count where they approached me for advice on purchasing an EV (BEV or PHEV). In every case they would have been saving money the first month of ownership if they went with the EV v. the ICE they were considering (Granted they would have to float the tax credit until next April, but all of them were financially able to do so). In every single case they have opted for ICE. Why? FEAR. Every single one of them 'found' a reason the EV wouldn't work for them. And we're not talking the big reasons like 'not enough range' for my daily needs. We're talking about the 'I don't want to have to remember to plug it in every night' or 'I don't want to have to think about my range' reasons. Really? You are so lazy that you can't be bothered to plug in every night or to actually THINK once in awhile? It's not really that much effort to save money every single month.cpwl said:This is one of the, if not the single-most important factor in the purchase of consumer goods and in this case by extension the adoption of a new technology, the BEV. To date, most people have considered the “buy-in” cost as the biggest factor in deciding purchases. And as cars are usually the second most expensive purchase we will ever make (behind the family house), a price tag increase of 10% let alone 20 or 25% is often enough to move that choice out of the pre-determined price range and causes the consumer to either buy the less expensive model or simply not buy at all and continue to operate an already obsolete and high operating cost poorly performing vehicle. In general, reduced life cycle cost – the complete cost of ownership from purchase to disposal – often depends on purchasing a higher quality and hence higher cost item. Thereafter maintenance and operating costs will be less such that over the now average 7-8 year ownership span, the total cost of ownership is often less than the lower priced version. This rarely works out to be the case if people only own their vehicle for 2 -3 years or if they keep it for an inordinately long period such as 15 or more years. Depending on mileage driven, while some 25% more expensive that the FF Titanium ICE, the FFE can cross the threshold for lower life cycle cost as soon as 4 years but more commonly at years 5 or 6.
For various reasons not everyone can afford the BEV “buy-in” premium. It can be as simple as not being able to raise the required credit or not having sufficient remaining life on their ICE to save up for the premium price of the FFE compared to a FF ICE. This cost premium will be one of the primary reasons that BEVs will take a long time to gain a large market share and quite perversely will be a primary reason why people continue to buy and operate ICE platforms which over the vehicle’s life cycle will cost them more than would a BEV operated for the same life span and overall mileage.
The purchase price cost premium cannot be avoided nor can it be dismissed when prospective clients investigate the purchase of a BEV. Advocates and sales staff as well as corporate marketing campaigns will need to promote these vehicles not only on their capabilities but equally importantly on their life cycle cost savings based not only on fuel cost savings but also on reduced maintenance requirements. Unfortunately the reduced maintenance aspect is in direct opposition to the maintenance profit model of most dealerships and will hence be a “hard sell” at the corporate level.
Thanks and Cheers
Carl
Here's an example - My brother and sister in-law were considering a Cruze and a Volt. After the tax credit the Volt was ~$3k more. He has a 37 mile round trip commute, and there's a L2 across the street from his office in case he needed to do something after work and didn't want to put gas in the thing. He was willing to put $7500 down on the Volt because he'd only be floating the money for ~8 months. Plan was to put nothing down on a Cruze if they went that direction. Result? Monthly payment on the Cruze that they bought was $117 higher than their Volt Payment would have been. And that doesn't even take into account the fuel savings. For them, just based on the work commute (and no other driving they might do during the course of a month) their daily fuel cost savings would be $3.53. Net savings per month had they bought the Volt instead of the Cruze they opted for would have been $189/month. It wouldn't take long to pay off a Clipper Creek LCS-25 with that savings. Three additional points - First, this is someone who has had direct exposure to BEVs as I've been driving electric for almost 2.5 years that came to me for advice on this topic. Second, he's an accountant. And finally, in a prior life he was a licensed electrician, so he wouldn't have to pay anyone to do the EVSE install - and it wouldn't have been his first, as he installed mine.
So what was his reasoning you might ask? Didn't want to have to remember to plug in every night, and the good old standby of 'fear of battery replacement costs' as he plans on keeping the car for a decade. I had almost the exact same discussion with someone that I work with about the CMax and the CMax energy. He went with the CMax because he felt like the whole getting an EVSE and plugging the car in was two complicated for him to deal with. This individual is one of the most renowned scientists on the planet in his field. I could go on with more examples, but I think you get the point.
Even when the savings is immediate, folks either don't bother to do the math, or find some other excuse not to change out of fear or perception.
Sorry, I'll get off my soapbox now, but just re-living those discussions to type them up here has gotten my blood boiling again. Anyway, my point is, there isn't always a significant premium to buying in to the EV world, and reasonably intelligent people with the resources and ability to get into an EV don't, even if it won't negatively impact their life in any meaningful way.