Are Electric Cars Worth It?

Ford Focus Electric

A hot topic this month and in coming months will surely be whether all-electric cars, such as the Nissan Leaf, Chevy Volt, or Ford Focus Electric, are worth the expense.

First, 'worth' is highly subjective.  Most people think of worth as a purely financial metric.  Some think of worth in broader terms, considering the environment, helping in building demand for a "morally good" product, whether it employs local people, or other meaningful metrics.

I think the majority fall in between, leaning towards financial.  In other words, most people are willing to pay a small premium if it satisfies one of the other metrics important to you.

So given all of this subjectivity, how can we determine if an electric car is right for you?  Today I'll talk about some interesting ways in which you can make that determination.

Rate what is important to you

Ask yourself what is important, and then rank your results. Some ideas include:

• Initial Cost
• Total Cost of Ownership (TCO).  This includes not only how much the car costs, but also maintenance, insurance, and fuel
• Mileage (miles per gallon, or miles per full charge)
• Range (how far you can make it on one tank or one charge)
• Size
• Need (i.e. do you need a commuter car, a family car, or a offroading vehicle)
• Emissions and overall environmental impact
• Looks/Image
• Trend setting
• Made in the USA (note that many foreign brands are made in the USA, while some USA brands are made in foreign countries!)

Consider the Electric vs Gasoline Cost

A typical small commuter car, which most (but not all) current electric cars are, can get about 30 miles per gallon. Assuming an increasingly high gas price of $4 per gallon, that means a 100 miles trip would cost $13.33.

Next, consider the specifications of the electric car you are considering. The Chevy Volt uses about 36 KwH to drive 100 miles. Where I live in Arizona, I pay around $0.14 per KwH - slightly higher than the national average. Assuming electric rates go up to $0.15, then the electricity cost for 100 miles is $5.

So we're looking at an $8 savings per 100 miles driven.

Other Cost Considerations

The $8 per 100 miles savings is of course highly variable.

• Remember that there are very large tax rebates available for electric cars - up to $7,500
• Electric cars get slightly worse mileage in very hot weather
• If you have a solar system on your home, your electricity costs may be much less
• You will have to consider the cost of replacing batteries at least once in the life of an electric car
• However, other maintenance for electric cars is generally less than gasoline cars
• You will need to purchase a charging station for electric cars (some include this, some don't)

Consider What Is Available

The table below is based on availability in the USA. Many of the cars listed, and many more not listed are already available in Europe, Japan, and other parts of the world.

Note that the current selection includes a sports car (Tesla), a minivan (Ford Transit Connect), and a number of commuter cars.  Expect many more cars to be added to the selection over the next few years.

All-Electric Cars

Make	Model	Year Available	Cost	Range
BMW	Megacity	2013	tbd	100 miles
Chevy	Volt	2011	$40,280	300 miles
Ford	Focus Electric	Late 2011 or 2012	tbd	100 miles
Ford	Transit Connect BEV	2011	unclear; around $23,000?	80 miles
Honda	Fit EV	2012 or 2013	tbd	tbd
Mitsubishi	I-MiEV	2012 or 2013	tbd	low $20,000's
Nissan	Leaf	2011	$32,780	100 miles
Smart	Fortwo	2012	tbd	tbd
Tesla	Roadster	2011	$109,000
Think	City	2011	$34,000	99 miles