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Cost of electric cars puts off buyers

Almost half of buyers tell the AA that EVs are too pricey.

Electric cars are too expensive right now, and that's putting many car buyers off the idea of going zero emissions. That's according to a new study by the Automobile Association (AA).

6,000 motorists responded to the sruvey

AA's car insurance arm asked 6,000 motorists for their views on a range of subjects, and one of the most prominent results was that 45 per cent of respondents feel that electric cars are just too expensive up front. That was even taking the €10,000 worth of grants and VRT rebates into consideration. As well as the 45 per cent that 'strongly agreed' with a statement that electric cars are too expensive, another 21 per cent 'somewhat agreed.'

"Electric vehicle technology is still relatively new and as a result an electric car can appear very expensive when compared to the petrol or diesel-powered equivalent. While they are grants available for those who want to transition to an EV, and in fact that long-term savings will help offset the up-front cost, many who are interested in ditching their fossil-fuel powered car are waiting for the technology to become more affordable," Conor Faughnan, AA Director of Consumer Affairs stated. "As more manufacturers start to develop their own EV models, the upfront cost will likely start to drop but for now cost does seem to be blocking our transition to cleaner cars.

People might now hang onto older cars for longer

"It's also important to note that this survey was carried out before the COVID-19 restrictions were introduced, and the economic impact of dealing with the crisis as well as the temporary or permanent job losses for many could affect this number further. We may enter into a period where people choose to retain their existing cars for longer due to personal financial circumstances which could delay the transition away from fossil-fuel powered cars."

It is possible that a broad campaign to publicise the grants available for electric car purchases might help, though. The AA's survey found that only a third of buyers felt that they understand the supports and grants that are currently available.

Only 11 per cent feel that they understand grants available

Only 11 per cent of those who responded to the survey said that they felt that they adequately understood the grants and rebates available. Another 22 per cent said that they kinda-sorta understood them.

"If you are considering a switch to an electric vehicle, then there are grants available not only for the car itself but also to assist with the costs of installing a home EV charging unit. As well as VRT relief, the Sustainable Energy Authority of Ireland (SEAI) currently offers a grant of up to €5,000 to those purchasing an electric vehicle depending on the car's list price," Faughnan added. "When you consider these grants, alongside the long-term savings of an electric vehicle, purchasing an EV could be a lot more affordable than some people may think."

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Published on May 5, 2020