Will Electric Cars Save You Money? Renault Lays It Out: EVs Versus ICE

OCT 16 2018 BY STEVEN LOVEDAY 19

Is it safe to call EVs a “bargain” even though they cost much more than ICE cars?

Renault asks the above question and then elaborates by diving into which powertrain is truly the most cost-effective. The article is broken down with the main points that people should consider when trying to figure out the answer to these questions. Should you make the switch to an electric car? In the longer term, will an EV cost you extra or save you money.

There is a lot of “this and that” out there when it comes to EVs and whether or not the investment is financially viable. While some information is well-researched, keep in mind that there are mixed agendas involved, so it’s hard to glean actual facts on the subject. Though Renault is a huge supporter and manufacturer of EVs — often topping Euro EV sales — it still has its hand in ICE vehicles, at least temporarily.

Based on the above information, we have to ask … why would a company like Renault be surging forward with an eventual complete switch to electric vehicles? Let’s take a look at what the automaker has shared.

Renault admits that it’s a tough decision to forego the purchase of another ICE model and buy an electric car. When purchasing any car, regardless of powertrain, you have to consider performance, size, driving dynamics, comfort, design, etc. Today’s EVs, unlike many of the past, do a much better job of being “normal” and having all these bases covered. Still, price is most often a more substantial factor for many people than all of the latter.

While many people are under the impression that EVs simply cost more, Renault explains that there are many factors that may make that thought process untrue. Moreover, as time progresses, electric cars will become even more affordable due to mass production and decreasing battery costs.

Tax incentives in Europe and beyond can help to offset the price of an electric car. In addition, there are other financial perks available in some areas like free charging, free parking, registration exemptions, etc.

It’s hard to look at the long-term cost of a car rather than the sticker price. People are more willing to jump on that very low lease price or financing rate, as well as other incentives at the time of purchase. Figuring out what a car may cost over a number of years seems less important to many people than the bottom line monthly financial impact on their budget.

Renault says that driving electric saves some 20 percent over a comparable ICE car, mostly due to the reduced “fuel” costs. Additionally, many homeowners can set up a schedule to charge their cars when electricity costs are cheapest. It’s not as if you can decide to gas up your ICE car in the wee hours of the night when gas prices are reduced. That’s just not a reality.

Added to all of this is the reduced maintenance cost of owning an electric vehicle. As we’ve said before, there are less moving parts, fewer fluids, etc. Renault asserts that maintaining an EV costs about 25 percent less than that of an ICE vehicle.

In the end, the more you drive your electric car and the longer you own it, the more cost savings you’ll enjoy. It’s important to note that Renault points out that all of this still comes down to how you choose to drive your car. Energy use is still dependent on driving habits, the number of miles you travel per year, how long you plan to own the vehicle, and when and where you are “fueling up.”

What do you think? Share your insight with us in the comments section below.

Source: Groupe Renault

Categories: Renault

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19 Comments on "Will Electric Cars Save You Money? Renault Lays It Out: EVs Versus ICE"

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Alaa Sadek

Yes

Rick

Great… money is all that matters it seems. Whether it costs a bit more or less, they could argue for EVs as the better overall option for the more important environmental reasons. It’s sad only Tesla has the right mentality: accelerate the transition to sustainable energy because the environment and life on earth need it badly.

Lou Grinzo

Tesla is doing the one thing that years ago I thought was impossible: They’ve made doing the right thing cool enough that people who don’t know the difference between CO2 emissions and a party balloon full of helium lust after their cars.

In a perfect world, I would prefer people do the right thing for the right reason at a time when we’re desperate for ways to avoid an environmental catastrophe, but if we can get them to do the right thing for a stupid reason, I’ll take it.

Counterpoint

It reads more like a PR piece than an actual cost comparison. I was hoping they would have actual numbers listing and comparing each type of cost.

P Roppo

That depends greatly on your local costs. I would have seen it as highly inaccurate if they had made some definitive statement.

Giampiero

We can not compare the FCO because fuel cost for ICE cars depends largely on fuel taxes. Who can say that governments will not tax electric energy at the same level once the number of electric car will be significant?

Get Real

Well we could say the same thing about everything in the future right?

Since we cannot predict the future I think its safe to make investments on the present.

John Doe

They can try to tax my solar panels. .

viriato

In Spain the previous goverment did it.

Luckily, the actual goverment retired that law.

P Roppo

Your solar panels that I am paying for through my exorbitant electric bills.

viriato
This will be solved with an adecuate regulation. Most of countries espend huges ammounts of money buying carburants to other countries, most of them corrupt countries and oligopolies, lot of money that goes out the economy, while the electricity production may be mostly generated by local industries based on renewable sources, free in all the world. This will save a lot of money for countries like Japan, South Korea or Europe, that don’t have petrol. The cost of this energy is lower everyday, but the cost of petrol is bigger, because is a finite resource which is more difficult and expensive to obtain, the cheapest oil fields are out. And we have another costs, like wars and conflicts for control the strategic oil production areas, which produce big problems like poverty, refugees, terrorism, corruption, failed countries,… And in difference with the petrol, electricity is basic for every people. Electricity give us light, electrodomestics, tools, warm, cooling systems, is basic for hospitals, industries, education, food…. a competitive price for the electricity is basic. We have alternatives to the transport by petrol, but not for the electricity. And if is cheaper to obtain, even with more taxes will be affordable for the… Read more »
cinos

Producing electricity is easy, petrol isn’t and turning it into gas for an ICE is adding insult to injury.

Al D

Today’s EV’s are no bargain. Perhaps they will be 5 years from now. Whatever the case, I’d pay a premium for a solid-state EV, but wouldn’t be interested in an EV with the current Li-ion batteries.

G2

Is that you again Boob Putz??

Alex

I don’t dislike Renault but this is a bit deceiving.
Zoe can be bought without batteries so costs are easily calculated. Renting will cost close to 100€/month for 15k km. That alone is what I pay for fuel (probably a bit less for the ICE) for a car a lot bigger and higher level for the same distance – European fuel prices. The price of electricity will pay for all my car maintenance (at night prices)… and Zoe is not free from maintenance costs.
Zoe is a very nice car and driving green is good for the ego and environment but it’s hardly cheaper.

orinoco

If you price in the environmental costs of fossil fuels, an EV is way cheaper than an ICE car. ICE cars just seem to be cheap because the gas price does not include the postponed costs their emissions will cause in the future. And remember: more than 70% of the emissions are caused by heat loss. With that “efficiency” and a fair gas price, ICE cars would be way more expensive and hardly affordable.

Bill Howland

Since the price of European Gasoline is so expensive (I’m ignoring the lower cost Diesel there since VW group and Robert Bosch have literally poisoned the water, so to speak – of course London and Paris children with increased Breathing Difficulties can definitely be laid at their feet – so much for their ‘Clean Diesels’ – if there is such a thing as a CD then it is also clear VW has not been the company to make it!), I’d think Electrified Vehicles (whether PHEV or BEV) would sell FAR BETTER than in the states with its reasonably priced gas.

Renault is to be congratulated for at least making practical electric vehicles. The Germans make cars that BARELY HAVE BIG ENOUGH BATTERIES TO BE LEGAL (31 km) – meaning these microscopic batteries would be even smaller if it was legal to do so.

Methinks Europe would have a larger penetration of BEVs and PHEVs if the manufacturers would start putting decently sized batteries in them.

Tim

Headline fail. Axiom: “If the headline is a yes or no question, the answer is always no”

Better headline: “Are EVs really more expensive to own than LICE over the long term?”

P Roppo

In California, driving an EV is more costly than a good Toyota hybrid. If paying public chargers, it is way more. This is a travesty. Anybody in the US can see how their local costs compare at fueleconomy.gov.