Electric Cars Prices Are About To NOSEDIVE. Here’s Why.
Electric cars are way too expensive it’s true and that’s coming from someone who actually likes and owns electric cars why do they cost so much why if you want to buy a proper family EV will it cost you a minimum of £25,000 for something like a byd dolphin or an mg4 it’s
Ridiculous and importantly when will these new EV prices start to come down anytime soon actually yes prices have to start falling and pretty soon and my bet is that EVS are going to start to become a lot more affordable in a very short space of time I know people have been
Saying it for years and it hasn’t quite happened so far but there are now several good reasons why new electric cars are going to start becoming a lot more affordable it’s imminent trust me we’re going to break it down but before we do that can we just take a moment to
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The Bell icon cuz you’re in for a treat right on with the show okay now reason number one why electric cars will start to become more affordable there were more and more electric cars being built it’s simple obviously demand has dropped off a little bit last year the prime minister
Of Britain delayed a ban on Ice vehicles in 2013 30 partly because The Upfront cost of EVS was just too much especially for people struggling with the cost of living and that probably did contribute to people thinking twice about buying EVS but that hasn’t stopped car makers
From building them at the same speed they have to the government still has a zero emissions vehicle mandate a Zev mandate which imposes Targets on car makers all the way up to 2035 what it means is that at least 22% of every car Maker’s range must be purely Electric
Now otherwise they get fined in 2025 that raises to 28% in 2026 33% must be fully electric all the way up to 80% in 2030 and 100% in 2035 that means there are more new electric cars coming into a market at a time when buyers are uncertain about making the switch from
Petrol or diesel so if you’re a car manufacturer and you’re competing with so many other electric cars what’s the best way of making your car stand out you make it cheaper that is going to happen now reason number two why I think EVS are going to become more affordable
To more people there are more and more used electric cars than ever before one of the easiest ways to drive a new EV is to lease it or Finance it especially if you run it as a company car because you get huge tax breaks and every day more
And more of these cars that people have been leasing are coming to the end of their lease periods and flooding the market more Choice lower prices the the other thing is that depreciation on your side people sometimes criticize EVS for their higher depreciation but in the
World of used cars this is actually a good thing because the prices fall so quickly and that makes used cars more affordable check out the price of a used Porsche tyan on auto trader less than 45 Grand for a 4-year-old car that cost about double when it was new you can get
A Jaguar iPay secondhand now for £20,000 5 years old that’s just nuts originally it cost what 70 grand obviously there are questions about how long the batteries will last that’s a video for another day and I will do that video trust me but that cheap Porsche example
That I just mentioned still has about 50,000 Mi of battery warranty left and the Jag is still covered for another 65,000 Mi what happens beyond the warranty again topic for another day and I will cover it in depth but check out my video series where I bought the
Cheapest electric car in the country to see how bad the battery had deteriorated and spoiler alert it’s actually not as bad as people think now reason number three in my list of why electric cars will definitely get cheaper simple one Tesla they’re going to have a huge impact on the overall
Electric car market last year they slashed the price of the model y by £8,000 and because Tesla is so influential millions of car sales will do that a lot of it competitors basically did the same thing by either dropping their list price or offering better Finance deals or giving other
Discounts the average discount on a new EV right now is more than 10% off the list price and some car makers will offer you even more than that right guys before we continue just a moment to fondle the play button and uh to pass you to a very important ring
Reporter now who has a message about how you can get an electric car for free is that right we’ve hidden a Tesla Model y somewhere in the UK ready to be won all you’ve got to do is find it and work out the car’s Auto Trade evaluation but
We’ll help you with that bit so tune in to the AO Trader Ultimate Car Hunt Live for the chance to win a Tesla Model Y what a nice chap he’s right too we’re doing a live stream on the channel on the 28th of March first live ever and we’ve hidden a test somewhere in the UK and if you find it you could win it simple as that details down below right reason number four on my
List of why EVS are bound to get cheaper Tesla wasn’t actually the biggest selling electric car brand in the world last year that honor belonged to byd build your dreams from China cuz they sold gazillions of cars in China and now they’re settling into Europe with a very
Simple aim to sell gazillions of cars over here and they’ve got one very specific Advantage cost low battery production costs in China means that manufacturers like byd gwm and even mg can undercut European Brands while still making a profit I’ll give you an example in China a byd dolphin costs about £1
13,000 that’s how low they can push it here in the UK because of import tariffs and other taxes it’s like 25 Grand but that’s still quite cheap compared to Rivals and that value is why mg account accounts for 4% of new car sales in the UK 1% more than Tesla and with Brands
Like aloda zika hii and Neo all along the way they all sound made up don’t they but they are real and they’re all making very interesting looking stuff that will mean EV prices will continue to be driven down right number five even without the Chinese influence it’s just a simple
Fact that the traditional European car makers are going to have to get their electric cars priced on par with petrol equivalents right now you’re looking at 35% more for an electric car compared to a like for- like petrol model that’s mainly because the materials and development costs are just so much
Higher the batteries alone take huge amounts of energy and high priced raw materials to make but battery production is getting cheaper and I’m coming to that and right now faced with a stagnating EV Market Brands face a pretty simple decision drop your prices or die number six batteries really are
Getting cheaper and cheaper according to Bloomberg EV battery prices fell by 89% between 2010 and 2020 even if it doesn’t always feel this way and there are some good reasons for this number one economies of scale the more batteries you make the cheaper it gets number two manufacturers are localizing extraction
And processing of raw materials to save cost and carbon and number three car companies are making their own gigafactories to build batteries where the cars themselves are being made Nissan they’re spending billions of pounds doing exactly that in Sunderland in the UK and number four with time car companies are getting better at
Repairing and repurposing existing batteries Tesla they say that 100% of their batteries are recycled not a single one goes to landfill this is all much better for the environment and it makes things more cost effective for us win-win the other important thing on this subject is that there are new
Battery types coming onto the market all the time all EV batteries will use lithium ion of some variety but there’s a whole cocktail of other ingredients that batteries can use especially if you want to drop the price of that battery typically we’ll use nickel and Cobalt in addition to the lithium but there’s
Another type known as lfp lithium Ferris phosphate which have a slightly shorter range but are cheaper to produce that’s the one that Tesla uses in the cheapest version of the model y to very good effect that’s what helped them cut the price by £8,000 right those are the six reasons
That I think electric cars are going to get cheaper imminently am I talking absolute rubbish hopefully not but the proof of course will be in the pudding and we’re going to find out very soon people have been predicting price parity between EV and Ice forever now and we’re
Still not quite there but with a bit of luck we’re going to get there sooner rather than later let’s face it though if people are going to actually buy EVS without having to take out a second mortgage then all of this it just has to
Happen right I hope that gave you a bit of context and insight into where EV prices are headed and if you want to buy your own EV or petol car right now head over to auto trader UK and if you want to win one of your own electric cars
Follow the link down below plus you can stay up to date with all the latest happenings in the world of cars if you subscribe to also trade UK like a million plus people have done all ready thank you for watching guys any questions drop them down below and I’ll see you soon Peace
Rory ponders the future prices of electric cars. Will they ever get cheaper? And will it happen any time soon?
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