People who are wise with their money look ahead. Far ahead. It’s been said that poor people look to today, the middle-class look to the month, the wealthy look to the decade. If you want to be wealthy, it’s time to act like them. That’s why it’s important to look ahead and see what change is coming. This post is about why we will soon all be driving fully electric cars. And what it means for your bank account.
The sun is how electric cars will eventually get their fuel. It’s smart. After all, it’s a renewable resource. It’s kind of like having an income. A renewable income is much greater than simply exchanging hours for dollars. Once the price of solar panels come down, we will all have them.
Yes, some electric power still comes from coal plants. But they are much more efficient than cars at using power. So burning coal at the plant and converting it into energy there is much better than making it into fuel that the car can burn. This is largely because coal plants have the room to use the energy to it’s max potential such as with running turbines to generate more electricity after the coal is used, etc.
Electric cars are also great for our finances because we don’t have to rely on fuel stations and shipping oil. Not only can you use solar to power your car, you can power your house as well. This is especially cool because you can use a battery for your house and car. Even if you’re on the grid, you can suck and store power during off-peak times to use during the day. This saves energy costs.
Electric cars have much fewer moving parts as well. This means they are more reliable than gasoline powered cars as a rule and they can last longer. All electric cars are more like aircraft than cars. Since the drive train is good to go for a long time, you can simply refurbish the interior and the car is up-to-date again. The biggest reason people get rid of their gasoline powered cars is because they look dated and it’s not economical to update them.
Electric cars also pollute less so our governments will have less to deal with. We won’t have to put so much money towards climate change issues. Plus, our planet can breath easier.
Much of an electric car’s technology can be updated via the internet. This means you don’t need to take time off work to go to a deal fox tech glitch fixes. Also, your car gets smarter over time. The Tesla Model S is the first car that actually gets better the longer you own it.
An electric car can also be ran when you’re not around. This is handy since since you won’t have to go home so much on trips around town. For instance, you won’t need to grocery shop, go home, and then go to your daughter’s school play. You can instead grocery shop, keep the A/C running in the car and then go to the play. It’s far more convenient and cheaper since you won’t have to drive your petrol powered car home.
Electric cars are also quiet. This means less noise pollution, meaning we can live closer to houses that would have otherwise been too close to roads for most of us to enjoy. The interior of an electric car is quiet as well. This means driving is less tiring. You can instead get to your destination ready to go instead of feeling like you need a nap.
I’m excited for the future of transport. All signs point to electric. By having electric cars on the road we can save a lot of money. This is money we can put towards more interesting ventures than gasoline. What will you use with the extra money?
Should you buy a Tesla?
Pretty soon, the Tesla Model 3 will be hitting the roads. It’s priced at $35,000. That sounds expensive except when you realize it’s all electric. This means propelling the car is super cheap. Also, there are much fewer things to go wrong than with a gasoline powered car. Plus, there are tax rebates involved – as much as $10,000. Originally, the price is $35,000 but with rebates, it can be down to $25,000 and without ever having to put fuel in it… that number can get quite low. Especially considering it will be in the same class as the BMW 3-series and the Audi A4.
But there are downsides as well. According to Consumer Reports, the current Tesla models – the Model S and the Model X have below average reliability. Remember, Tesla is a very new company. These Teslas are in their 1.0 stage.
Another downside is range – for a very select few. Now, each Tesla can go 200+ miles on a charge. That’s plenty for most people. In fact, Tesla could extend that range if it wanted to. But 200 is a good range for most people. However, some people who live out in very desolate locations may have issues. My parents, for instance, live in central Nebraska. They like going to Colorado. They could do it in a Tesla but they would have to make a looong stop in a small town to get a recharge.
As with all things in finance, sacrifice must be made early on. For instance, in college, you work for a long time without receiving much reward. The reward comes later when you get a job and can buy your dream lifestyle. So with a Tesla, there are some sacrifices at first. First off, they require a down payment of $1,000 for the Model 3, $3,000 for the more expensive Teslas. If you’re familiar with opportunity cost, you see the slight issue.
Also, you basically pay for fuel up front – but at a much lower cost. That’s because electric vehicles cost more upfront. But eventually, they will pay for themselves. After owning them for a few years, they are cheaper to own in total than a gasoline powered car.
One final slight downside to note is that Tesla is still indeed a small brand. That means getting issues fixed takes more doing than just popping by your local Chevy leader. Technicians are send out to you if your car breaks.
So… should you buy one? YES. In my opinion. They are an incredible car for the money. Do I own one? No. But that’s only because I don’t drive very often, thus making a nice car of little use for me. But come a time where I drive enough to justify a nice car – I will look to a Tesla – a used Model 3 would suit me quite nicely I should think.
To reserve your Model 3, it requires s $1,000 refundable down payment. However, they have already reserved billions of dollars worth of Model 3’s – which are slated to begin being delivered at the end of 2017. So if you or I want one, we’ll probably have to wait until quite a ways in 2018. Oh, well. As mentioned earlier, good things come to those who wait. That’s an important rule in personal finance.
I’m a personal finance freelance writer and webmaster. I welcome you to visit me at www.thefrugalpreneur.com