Experts answer: will buying an electric car help you save?
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Publication date 18.09.2024
Experts Answer: Will Buying an Electric Vehicle Save You Money?
Electric vehicles (EVs) are rapidly gaining popularity in Lithuania. The growing number of EV owners indicates that these are convenient and efficient alternatives to traditional vehicles.Save
The appeal of EVs is further boosted by government incentives, lower operational costs, and increased focus on environmental protection.
But will buying an EV really help you save money? Let’s find out!
Government Support
One of the main reasons EVs are becoming more accessible to a wider population is financial support from the government.
Lithuania allocates significant funds to promote cleaner transport. Private individuals purchasing a new EV can receive a €5,000 one-time subsidy, while businesses are eligible for €4,000, provided by the Environmental Projects Management Agency (APVA). Subsidies are available not only for brand-new EVs but also for used ones.
Between 2022 and 2026, total funding for EV subsidies in Lithuania will reach €50 million, with €35 million allocated for private individuals and €15 million for businesses.
This support is part of a broader strategy to reduce emissions. So far, more than 2,500 citizens have benefited from this initiative.
Lower Operating Costs
The initial cost of an EV is often higher than that of a traditional vehicle with an internal combustion engine, but the long-term operating expenses are significantly lower.
One of the biggest advantages is fuel savings. Charging an EV is much cheaper than refueling a gasoline or diesel car.
According to "Swedbank" estimates, Lithuanian EV owners can save up to 70% on fuel costs compared to drivers using conventional cars. For instance, the cost of electricity in Lithuania ranges from €0.20 to €0.30 per kWh, and an EV typically consumes about 15-20 kWh per 100 km. This means driving 100 km in an EV costs about €3-6.
In contrast, a gasoline car consuming 7 liters per 100 km would cost approximately €12.60 at an average price of €1.80 per liter.
Additionally, EV maintenance costs are much lower than those of traditional vehicles. Experience shows that EVs have fewer mechanical issues, reducing the likelihood of unplanned repair expenses.
Experts estimate that EV maintenance costs can be up to 50% lower. Savings include expenses for oil changes, transmission repairs, and exhaust system maintenance, which are common for gasoline and diesel vehicles.
Attractive Tax Benefits
EV owners in Lithuania also benefit from various tax breaks, discounts, and financial incentives.
EVs are exempt from the registration tax, which depends on CO2 emissions. For traditional vehicles, this tax can range from €100 to €500, depending on emissions. Another advantage is the exemption from annual road taxes, saving EV owners an average of €60 to €120 per year.
Parking is another important factor. EVs can be parked for free in designated areas, which can lead to significant savings, especially for frequent city travelers.
It’s also worth noting that cities like Vilnius and Kaunas are actively expanding their EV charging infrastructure, making EV ownership even more convenient in the near future.
Clearly, with government financial support, tax benefits, and lower operating costs, EVs are an ideal choice for those looking for economical commuting options, whether for work, city travel, or longer routes across Lithuania.
The experience of many drivers shows that purchasing this alternative vehicle leads to long-term savings while also reducing the environmental impact.
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