So When Will We See EV Prices Actually Go down?

hazwing on 14/05/2023 - 23:41

So I've been exploring the possibility of purchasing an EV vehicle while the government has this FBT exemption for EV vehicles.

I'm tossing up whether to try pick up something now or wait until EV prices go down. However with inflation, low supply and high demand, it seems like EV vehicles are actually going up in price (generally)?? The FBT exemption is going to be reviewed in 2027, so there is a chance it might end by that time. The longer I wait, the less time I could have the vehicle FBT free.

So should I wait until there is more stock and competition for EVs, or should I get something now? Current model of ICE works fine, so from a practical point of view I don't NEED to upgrade now. But also concerned ICE values will drop quicker as EVs become more prevalent.

Automotive Electric Vehicle

Comments

      • seannami on 18/05/2023 - 11:23

        Why would you recommend against second hand EV?

        • THICKnSLOW on 18/05/2023 - 11:25

          Cost of replacement battery and labour, availability of replacement parts.

          • seannami on 18/05/2023 - 11:30

            @THICKnSLOW: Replacing the battery is quite a way into the car's lifetime though (and most have an 8 year warranty- though a quick Google suggests lifetime is more likely to be around 15 years), and you shouldn't need to replace parts all that often? I'd argue a second hand EV would be a pretty solid way to go (barring the older models that don't have temp-regulated batteries and such)

      • tunzafun001 on 18/05/2023 - 11:26
        +1

        I think $6k is about the norm. They were around $17ish brand new in 2011.

        Just dont think people realise this.

        As for condition, you can use ODBC dongles and look up the battery SoH. To be honest, the imiev doesnt get close to my needs (frequent 900km trips). But for many, as a second car, its probably fine. (Buy a Bluetti as an equivalent jerry can).

  • BuddhaBoy on 17/05/2023 - 23:22
    +1

    EV prices will eventually come down but that will take years… maybe a decade.

    If you are in the market right now for a car, and can afford an EV, it’s a no brainer, especially going for a Tesla.

    People are are recommending MG4 for $45k. Remember, MG4 will come at a higher service cost schedule.

    https://twitter.com/ev_australia/status/1657613107366363136?…

    Whereas, Tesla has minimal service schedule and costs.

    Also, the petrol savings are pretty good. I own one and in the last 5 months, I had done around 8,100km, and have spent $363 in charging in comparison to $1,211 in petrol. Saving is $848. In fact the saving is more as part of my charging at work is done for free but the Tesla app doesn’t segregate this pricing. Anyways, assume you save $1000/ 6 month of travel for driving 10,000km, you are saving $2000 every year on petrol cost based on 20,000km/ year.

    BYD Atto 3 is another fantastic vehicle and great value for money for $50k.

  • ialam99 on 18/05/2023 - 07:28
    +1

    I feel like the aussie dollar will be the biggest determinant to EV prices here over the short term and the aussie dollar has been slowly dropping against both USD and Chinese Yuan so i cant imagine huge drops in price. However, cheaper cars are on their way like the MG4, BYD Dolphin, etc so a cheaper smaller car might be possible of you wait.

    Ultimately though, if you have a perfectly good petrol car, the best option, both financially and environmentally, is to keep driving that rather then get rid of a perfectly good petrol car and upgrading to a shiny new EV.

    • idonotknowwhy on 18/05/2023 - 09:48

      environmentally, is to keep driving that rather then get rid of a perfectly good petrol car

      This is a good point, it reminds me of nearly a decade ago, when the local council got rid of the 120L rubbish bins and replaced them with 80L bins, for the environment.
      Turns out they put all the collected plastic 120L bins in land-fill.

      I hope they didn't do the same for the 80L bins when people opted-in to pay extra council rates to get a 120L bin again :(

  • tik tok on 18/05/2023 - 10:07
    +1

    Perhaps when Sodium-ion battery tech is more mature and accepted.

  • THICKnSLOW on 18/05/2023 - 10:34

    I'm waiting for all those non self-employed workers to get EV's on novated leases so that companies can start building a proper charging infrastructure network across Australia, and new battery tech like sodium Batts and solid state Batts are normalized, and more petrol stations close down, and electricity prices slow down their rate of inflation, and car manufacturers move back to dials and buttons for controls of important functions

    • tunzafun001 on 18/05/2023 - 11:29

      I also said i would never buy petrol again until it went back under 66c per litre. I suspect you are heading to a similar fate. Fun fact, I lasted just over a year…

  • Brick Tamland on 18/05/2023 - 10:37

    I dont see prices coming down for a number of years or even within the decade.

    There is huge demand at their current pricing point so there is no incentive for manufacturers to reduce the price. If anything, in an inflationary environment we may see prices climb. I think we only see price drops if a new competitor disrupts the market similar to what Hyundai did back in the 90's. However, the potential disrupters (the Chinese brands) seem happy to charge healthy prices.

  • johnfuller on 18/05/2023 - 11:13

    elon listens, they are releasing a cheaper version, give it time.

    • Logical on 18/05/2023 - 15:08

      a cheaper and smaller version.. smaller in size and smaller battery. Once on highway doing 110km/hr the range is diminished substantially….

      • johnfuller on 22/05/2023 - 08:38

        you know this as a fact because you've tried and tested it?

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