Are Electric Cars Worth It? Here Are the Pros and Cons to Consider in 2023

Key takeaways

• The EV industry has slashed the price of vehicles to try and sway new customers
• A new tax credit in the U.S. has helped drive sales
• But price, range anxiety and resale value are persistent issues in 2023

The EV industry has been a talking point in 2023, with price cuts indicating a struggling market amid the economic downturn and customer spending vanishing. The question these days is whether buying an EV is even worth it. We’ve laid out some of the top pros and cons of buying an EV if you’re on the fence — let’s get into it.

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Pros of EVs

Environmentally friendly

EVs produce zero tailpipe emissions, reducing air pollution and creating a cleaner environment. Some critics take issue with the energy EVs run on, and it’s true EVs won’t be completely green until they use 100% renewable energy, but they’re a better option for the planet than a traditional gas car.

Tax credits

For EVs bought between 2023 and 2032, you may qualify for a tax credit of up to $7,500, depending on the model. There are some rules for qualifying — the EV car and batteries need to be American-made, and there’s a price limit involved. But the savings are sizeable if your vehicle does pass the muster for the entire tax credit.

Cheaper to run

A 2020 study found a typical EV owner saves between $6,000 to $10,000 over the EV’s lifetime compared to a gas vehicle. After all, EVs don’t need oil changes, and you save on fuel costs.

Cons of EVs

Price

EVs are undoubtedly more expensive to buy than gas vehicles. With luxury models sporting an average price of $61,000, roughly $12,000 more than the auto industry average, the price is prohibitive for most. However, the likes of Tesla, Ford and Chinese EV maker BYD have introduced several price cuts in 2023 to help ease the pain — and keep their bottom lines happy.

Range anxiety

Ford CEO Jim Farley recently commented that charging anxiety and range anxiety — the fear of running out of charge mid-trip — puts people off buying EVs. The Tesla charge becoming the de facto standard should help alleviate the charging issue, and top EV models from Polestar and Mercedes can go over 400 miles in one trip.

Resale value

EV tech moves quickly, leaving customers concerned they won’t get a good deal if they sell the EV later on. Price cuts won’t help with that matter, either. In the U.K., electric cars’ auction prices have fallen by a massive 33.6 per cent since December compared to gas cars, which have dropped just 0.5%.

The bottom line

Buying an EV is down to your personal circumstances and what your priorities are. If you want to make the planet a better place and get ahead of the tide turning, you could spring for an EV. And if getting an EV isn’t in your price range right now, AI investing can help you get there quicker.

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