In July, gas cost me $35. In May and June: $14. However, I drive more than 20,000 km per year. But I drive electric.
After surpassing $2 a liter in May and June, gas prices fluctuated around $1.95 in Montreal and Quebec in early August.
No one can predict prices at the pump, but given the current geopolitical and post-pandemic situation, a sharp drop over the next few months would come as a surprise. Electric cars are likely to seduce consumers for a long time to come.
“If someone tells you that you have to wait months to buy an electric model, the same goes for petrol models,” comments Jesse Caron, automotive expert at CAA Quebec. So I recommend keeping and servicing your current car, but ordering an electric car now…”
I asked Mr. Caron to make some comparisons between an electric Hyundai Kona and a gas-powered (intermediate) model. With a usage of 20,000 km per year and a financing over five years. Even if the electric Kona retails $10,752 more than the thermal model (even after subsidies) and even if the interest rate is 4.49% for the electric and 3.99% for the thermal, you’re saving from month one!
So, accounting for financing, the monthly payment for the electric model is $208 more than the thermal model. But gas costs at $2 per liter are $2952 per year (or $246 per month), while the electric model’s electricity costs are $282 per year or $23.50 per month. This saves you $222.50 each month, more than the difference in monthly payment between the electric and thermal models.
Daniel Breton, CEO of Electric Mobility Canada, conducted the same exercise between a petrol-powered Honda HR-V crossover and an electric Chevrolet Bolt, with annual usage of 15,000 km (the Canadian average is 17,000 km).
Despite the $1211 price difference in favor of the Honda HR-V (after taxes and subsidies), Mr. Breton explained to me that the monthly payments for the HR-V were $896.94 per month including gas, compared to $655.25 for the HR-V the bolt. for a monthly savings of $241.69 in favor of the Bolt.
“People want to save on gas but are willing to put $10,000 in extra equipment in their car, equipment that’s often standard on electric models. You ask me whether electric cars are more economical than petrol ones? The answer is yes,” comments Daniel Breton.
- The cost of an installed electric charging station is around $1,000, but you benefit from a $600 subsidy.
- Some consumers pay more than the advertised price to have their car right away: exposing themselves to higher monthly payments and a longer payback period.
- The high prices of used petrol cars make them unattractive from a maintenance cost perspective, as those of an electric car are much lower.