A charging port is shown on a Mercedes Benz EQC 400 4Matic. Statscan data points to an uptick in EV sales in Canada in recent months.Mark Blinch/Reuters
As any fan of electric vehicles will tell you – yeah, me again – high gas prices are just one reason we made the switch from our old internal combustion engines.
EVs are quiet and fun to drive. There are no tailpipe emissions and you can charge them overnight at home. As an EV owner for the past four years, I would say those are my favourite features.
Of course, the gas savings are real. Economics can drive our decision-making – so the higher gas prices rise, the better EVs look.
The savings depend on your driving habits, the cost of electricity, when you charge and the fuel-efficiency of the gas-burning car you intend to replace.
One online tool (more on this in Today’s Financial Tool, below) calculated that I’m currently on pace to save about $1,500 a year with my overnight home-charging routine in Ontario. That helps offset the relatively high upfront price of the car.
Other consumers may be arriving at a similar conclusion, given the rising interest in EVs in some parts of the world after gas prices surged to multiyear highs when the Iran war began.
In Britain, EV sales soared 56 per cent in April, compared with the same month last year, according to a report from New AutoMotive, a research organization that supports the transition to electric. In mainland Europe, sales rose 51 per cent in March, the report said.
In Canada, the data is still a bit murky: EV sales – specifically, zero-emission vehicles – soared 47 per cent year-over-year in February. But this stat encompasses sales before the war and after the federal government introduced a new financial incentive under its Electric Vehicle Affordability Program.
Still, the uptick is promising.
Even in the United States, where sales have slumped over the past year, consumers are now showing renewed interest. Sales of new vehicles increased by 20 per cent in March, compared with February, according to Cox Automotive, the auto services company. Used EV sales jumped nearly 54 per cent over the same period.
If a large source of opposition to EVs is the belief that governments are forcing them upon consumers with incentives and mandates, rebounding interest in the vehicles globally – and the U.S. in particular – suggests that consumers are very much in control here.
I’ve written a lot about EVs since buying my own in early 2022, mostly in a monthly column that explored the benefits and challenges.
With interest in EVs on the rise, I thought it would be helpful to revisit some of the key points if you are considering making the switch to electric.
Are you worried about range?
Estimate how much you drive each day or each week. Now compare that with a fairly typical range of 400 kilometres on a full charge. For most people, most of the time, that’s probably more than enough. My pet peeve: Car manufacturers are feeding us big batteries, but most of us could probably live with much smaller ones.
What about winter range?
It is significantly lower. If you are commuting, that’s probably not a problem. If you are driving long distances, your drive will take longer with additional stops for charging.
Do you need a home charger?
No. In fact, I thrived for more than two years on public charging. I’ve since embraced 240-volt home charging, though, and it is awesome.
The convenience of charging overnight, when electricity rates are low in my city (Toronto), is a truly wonderful aspect of EV ownership. A full charge, giving me a 400-km range, costs about $5.70.
If you’re patient, a slower 120-volt electrical outlet could suffice. But remember: Electricity prices, like gas prices, can also go up.
Is the public charging network dismal?
It could be a lot better. But the answer to this question really depends on where you live and how fast you need a charge. I’ve found that there are enough fast-chargers along the highways in Ontario, but charging speeds can be slower than claimed and the cost is a lot higher than charging at home.
For insights into your local network, check out a charging app such as ChargeHub. You may be pleasantly surprised by the number of options. More EV drivers should translate into a better network.
Do you take a lot of road trips?
Long trips can be challenging in an EV, especially when public chargers are hidden in dark corners of lots. Charging apps and the onboard navigation systems remove a lot of the stress, though. And if you’re like me – I like to rest my eyes about every two hours – the charging breaks aren’t deal-breakers. But they can slow you down.
Do you live in the country?
I hear this complaint a lot: EVs only make sense in cities. While it is true that they are no-brainers in dense urban centres, where slow-moving traffic creates billows of exhaust, rural owners shouldn’t rule out EVs.
In the country, you probably have more room for a home charger, perhaps in a garage (I can only dream). Although driving distances are probably longer in the country, consider that a fully-charged battery can deliver about 400 km of range.
What if I need to tow a trailer?
The answer to this one remains a mystery to me. Your range will likely be reduced, given the extra weight and drag. A bigger issue: I’ve never seen a public charging station that can accept a trailer.
Two questions this week.
If you don’t own an EV, are high gas prices making EVs more attractive to you?
And if you do own an EV, have you ever pulled a trailer? Let me know at dberman@globeandmail.com.
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David Berman’s personal finance reading list
W’s to V’s: Dip-buying in market recoveries
We live in an era of V-shaped recoveries, where stock market downturns are followed by quick recoveries – rewarding investors who buy the dips. But prior to 2018, W-shaped recoveries were far more frequent: Recoveries sputtered. Given the strong rebounds over the past several years, the “fear of missing out” may be more powerful than the “fear of losing money.”
The melt-up
We may be in a V-shaped recovery now, but some individual components are looking like hockey sticks. Intel Corp. is up almost 500 per cent over the past year. Another tech company, Sandisk Corp., is up 4,100 per cent. “Certain parts of the stock market have started to act and feel crazy,” writes money manager Ben Carlson. “That doesn’t mean it can’t get even crazier from here.” (Hat tip: Abnormal Returns)
The case for acting now in international deep value
Stock valuations outside the United States can be 25-to-50-per-cent lower, while the U.S. dollar remains relatively robust. According to global asset manager GMO, these are “conditions that historically have created fertile ground for international value leadership once risk appetite stabilizes.” Okay, it’s a pitch for GMO’s International Value ETF (GMOI in New York) – but compelling nonetheless.
Things I wish I’d known before buying an EV
Here are three: potential issues involving insurance and repair costs for fairly straightforward dings; cheap juice might not last given the power demands of new AI data centres; and the depreciation of EVs can be severe. But the take-away is equally important: The owner still loves his EV (for subscribers to The Wall Street Journal).
Chart of the day
A historic bull market is under way, writes Tim Shufelt. Don’t overthink it.
Today’s financial tool
You can calculate the operational savings of an electric vehicle by hand. But calculators can do a lot of the number crunching for you. This tool, from CLEAResult, is U.S.-focused but it is elegant in its simplicity. You’ll need your electricity rate, the cost of gas in gallons and an estimate of your annual mileage.
Did you get a prenup?
Th Globe and Mail is looking to speak with people who were considering getting – or have gotten – a prenuptial agreement. Why? Well, it turns out that while everyone wants a prenup, very few people get them. To share your personal story, please e-mail Globe editor Roma Luciw at rluciw@globeandmail.com
In the social sphere
Social media
Do you regret your EV purchase? That was a question posed on Reddit two months ago. The overwhelming response: I’m never going back to an internal combustion engine. Couldn’t agree more.
The money-free zone
Last month, The New York Times assembled its list of the 30 greatest living American songwriters, including Taylor Swift, Stevie Wonder and Lucinda Williams. Now, some observers are hopping mad over the many great songwriters left out. I, too, was wondering how Tom Waits could have been omitted. Then again, it’s not my list.
