The conditions for buying an electric car have deteriorated significantly in the past year. Lower incentives, an increase in the price of money and increases at the source also penalize the purchase with the financing formula with maximum final installment. Professor Alessandro Abbotto, author of “Electric Mobility, History, Technology, Future” tried to calculate the increase in the monthly payment, which far exceeds 30%.
by Alessandro Abbotto ∗
The electric car is suitable, also thanks to continuous innovation and the rapid technological development, particularly well for new forms of ownership of the property, which go beyond the simple purchase of a car, as has hitherto generally happened. In particular, thanks to the incentives that replace the initial amount to be paid to the concessionaire, one of the most attractive forms is that of the loan, eg over 3 years, with a final maxiratato be used as a guaranteed future value for the transition to another new generation electric car.
Unfortunately, recently the policy of the national government and local administrations however, it did not go in the direction of favoring the purchase of the electric car, including the condition of financing with final maxirata.
The case of financing with a maximum installment
To realize this, let us make a simple count and compare the situation in Lombardy in March 2021 with the current one.
For convenience, we consider the following hypotheses:
- Purchase of an electric car at a price of 35,000 euros + VAT;
- Dealer discount = 10%;
- Advances, in addition to incentives, of 1,000 euros (usually payable at the time of booking);
- Financing with TAN and ÅOP = 0%.
This is what the comparison table looks like.
We can clearly see how, compared to the situation just a year ago, the installment has increased significantly.
More expensive monthly payment of 171 euros
The monthly increase of 171 euros corresponds to a difference of over 2,000 euros per year, which must be multiplied over 3 years. The higher outlay therefore becomes important and in many cases no longer compatible with family finances. In fact, the difference is even greater because the difference would be even more marked by interest (today, typically APR is around 6-7%).
Finallythe current incentive policy does not help especially the electricity sector. Many potential buyers, even if they are interested in the new sustainable mobility, but certainly discouraged by these prices, continue to turn to traditional thermobiles, which are cheaper and also incentive.
It is true that part of this gap would be offset by the lower maintenance costs of the vehicle (from the absence of tolls to the lower cost of “fuel”). But big difference in the monthly benefit however, it remains an important economic (and also psychological) factor.
Public administrations do more
A real incentive policy for electric mobility should include:
- lower costs at car manufacturers and greater competitiveness with thermobiles;
- increase in incentives in favor of electric cars (it would be enough, with the same available resources, to completely remove, once and for all, the incentives for thermal cars, a more unique than rare practice compared to the rest of the world, and pour them completely into electric cars );
- prompt to local authorities to support additional electrical mobility (ultimately it is the local administrations that benefit most from a reduction in pollution and emissions).
Note how the car industry, even if one removes the incentives for thermal or hybrid cars, will still be supported, which is one of the goals of government decisions (because, let us not forget, electric cars are also built by the car industry …).
Only in this way would the registration of electric cars also gain momentum in Italy. Our country would rise from the meager 3.1% recorded in April (against 27% of petrol cars and 21% of diesel cars). And it would come close to other European countries that are solidly placed at double-digit percentages. Alternatively let’s resign by staying back in Europe in the field of sustainable mobility. With a gap compared to other countries destined to grow more and more.
∗Lecturer at Department of Materials Science MIB-SOLAR Solar Energy Research Center at the University of Milan – Bicocca.
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