Ford Motor Company recently cut the price of the Focus Electric by $6,000, from $35,995 to $29,995. And that's in addition to the $4,000 reduction that took place last year, making the overall drop in price a whopping $10,000, or 25% off the original price.
This drop in price is a reaction to poor sales as well as falling gas prices. Should we, as buyers, assume that the prices of all electric vehicles will drop and stay that way? Also, although electric vehicles (EV's) cut out the need for gas, are they the best choice now just because car companies are cutting prices on them?
Do You Benefit from the Price Drop?
According to a survey by AutoTrader.com in which people were asked about their knowledge of alternative fuel vehicles, 70% of those surveyed said that the price was the main reason for not buying one. But there are other reasons as well, and these speak more to quality and reliability.
• People don't care about incentives and tax credits as much as they care about the price of the car. People want more immediate savings through a lower car payment. They don't want to wait a year for a tax credit, nor do they want to wait even longer than that to see savings in their fuel costs.
• Concerns with the performance and maintenance of EV's. Climate and driving habits can severely reduce how long charges will last, resulting in what is called “Range Anxiety” – specifically, you forgot to charge the car the night before, or you are using the A/C or the heater, or you're unsure about the availability of charging stations while away from home. Another issue is maintenance. For instance, after the warranty expires, the average cost to replace a battery on an EV is around $2,300.
So, even if the prices are lower, is it wise to go electric right now? Are Hybrids and standard gas powered vehicles a better option? At least with a Hybrid you can put gas in the tank when you're in a tight spot.
Gas Prices are Falling
In today's economy, gas prices are unpredictable. But recently, fuel prices have been declining. According to the most recent AAA Fuel Gauge Report, the national average for regular fuel was $3.08/gal, down $0.26 from last year's average of $3.40. If you factor in that the average back in the Spring of this year was $3.70, you can see a large downward trend in cost per gallon.
So, with this in mind, it might be wiser to purchase a hybrid vehicle or a standard gas powered vehicle with great MPG. And let's also consider our own financial situations. Many of us who are in the market for a vehicle still won't be able to afford an EV anyway – even with the price reduction. That Ford Focus Electric is still nearly $30,000. Used cars and smaller new cars are a more financially wise choice for those of us with bad credit or a low income.
Fortunately, we still have money saving choices available to us. And the team at Drivers Lane can help you get one. Just fill out our quick and easy online application to find out what we can do for you today!