Yes, electric cars (EVs) are generally cheaper in the long run due to significantly lower "fuel" (electricity) and maintenance costs, despite often having higher upfront purchase prices; savings accumulate over time through less servicing (no oil changes, fewer moving parts) and cheaper energy, especially with home solar or off-peak charging, often making total ownership costs lower after a few years. The tipping point depends on driving habits, local incentives, energy prices, and how long you keep the car, but savings on running costs (potentially thousands annually) can offset the higher initial price.
As EVs get older, the batteries progressively degrade. It is expected that at around 75% of the battery's original capacity, it has reached the end of its life in an EV. In reality what this means is that if the car was sold with 400 km driving range, at the end of its useful life it could be down to around 300 km.
In this handy guide, we'll take a closer look at the disadvantages of electric cars, including:
EVs are significantly cheaper to run, including fuel savings of up to 70% and maintenance savings of around 40%. For an average car travelling 13,700 km per year, this could amount to an annual fuel saving of $1000, or $1200 if the EV is able to charge overnight on an off-peak tariff.
Leasing an EV is often a "no-brainer" due to significant tax savings (especially with novated leases in Australia, leveraging FBT exemptions and pre-tax salary deductions for costs), lower running costs, bundled expenses (servicing, insurance), avoiding depreciation, and easier access to newer tech without the hassle of selling. This combination of financial incentives and convenience makes EVs more affordable and practical to drive, reducing the effective cost significantly compared to buying outright.
Rowan Atkinson, a self-proclaimed car enthusiast and early EV adopter, wrote a 2023 Guardian op-ed feeling "duped" by EV claims, arguing they aren't the environmental panacea they seem due to battery production pollution and ethical concerns over mining, suggesting keeping petrol cars longer might be better and calling EVs "soulless" despite their performance. His piece sparked criticism, with some blaming it for slowing UK EV adoption, while others defended his reasonable points about EV lifecycle impacts.
Present value test: To qualify as a capital lease, the lease contract must meet specific accounting criteria, such as the present value of lease payments exceeding a certain threshold (usually 90%) of the asset's fair market value at the inception of the lease.
After 2030 in Australia, petrol (internal combustion engine - ICE) cars won't disappear but will face a significant decline as the market shifts towards electric and hybrid vehicles, with the Australian Capital Territory (ACT) leading the charge by aiming to ban new ICE sales by 2035, mirroring global trends, though the Federal government has yet to mandate a national ban, focusing instead on emissions standards and EV infrastructure, meaning a mix of fuel types will dominate, but petrol cars will become less common and potentially harder to finance or sell used.
The 80/20 rule for EV charging is a guideline to charge daily between 20% and 80% for optimal lithium-ion battery health, extending lifespan by reducing stress from extreme highs (100%) and lows (0%). Charge to 100% only for long trips, and avoid deep discharges below 20% for regular use, though modern EVs handle occasional 100% charges safely.
Australia's slow EV adoption isn't outright opposition but a mix of high upfront costs, range anxiety due to sparse charging infrastructure, misinformation/myths, lack of diverse models, and Australia's unique geography/population density, all compounded by political/media narratives and vested interests in fossil fuels. While growing, the challenges include fewer chargers per EV than in other nations, concerns about long-distance travel, and a general lack of understanding or trust in the technology, despite lower running costs.
In 2020, EVs had 8.5 breakdowns on average, while combustion cars had 12.9. These figures went down to 4.3 for EVs in 2021 and 1.7 in 2022, while combustion-powered vehicles had an average breakdown rate of 8.2 in 2021 and 5.4 in 2022.
After 5 years, an electric car's main change is gradual battery degradation, typically losing 5-10% of its range, though modern EVs are performing better, retaining 87-94% of range, with factors like extreme temperatures and frequent DC fast charging accelerating loss. The battery usually still has significant life for less demanding tasks, often leading to "second-life" uses like grid storage, with many batteries outlasting their car's main useful life, while regular maintenance like tires and software updates are similar to gasoline cars.
The out-of-pocket cost to replace an electric car battery varies significantly based on different factors, like your vehicle make and model, and whether the EV battery is still under warranty. In general, the price to replace an EV battery no longer under warranty can run anywhere from $5,000 to about $20,000.
People are selling their Teslas due to backlash against CEO Elon Musk's politics and public stances, significant depreciation and high used prices compared to competitors, increased competition from other EV brands, and some dissatisfaction with Tesla's brand direction, leading to a mix of political alignment and financial considerations driving the trend.
Electric Cars - What are the downsides to electric cars?
What battery will replace lithium? Sodium-ion batteries are seen as a safer and more sustainable alternative to lithium-ion batteries. There are also other lithium-ion alternatives like iron-air batteries, zinc-based batteries and lithium-sulfur batteries.
Heat and Air Conditioning
Controlling the cabin and battery temperature is the biggest power drain second to driving the vehicle.
The short answer to the question is no. Generally, you should not charge your electric car every night because it isn't necessary for most drivers. In some cases, the practice of charging an electric vehicle every night may shorten the lifespan of the car's battery pack.
The cheapest EVs available right now (late 2025/early 2026) include the BYD Atto 1, starting around $25,000 AUD, followed closely by the MG4, BYD Dolphin, and GWM Ora, offering entry-level options under $40,000 for mainstream small cars, with future models like the Geely EX2 promising even lower prices, making EVs competitive with petrol cars in some markets.
Tesla's sliding popularity in Australia comes amid several other trends in the market such as the move away from pure battery electric cars in favour of hybrid vehicles; the increasing availability of cheaper Chinese rivals; and the broader waning appetite for cars that saw Australians buy 10,000 fewer vehicles in ...
If you're in for long car trips, choose diesel over petrol engines since they provide more power at lower engine revs. Featuring better fuel economy. Diesel cars give their owners better mpg than their petrol counterparts due to their fuel containing more energy per litre. Lower CO₂ emissions.
Australia's "25-Year Rule" allows importing classic and collectible vehicles (cars, motorcycles, light commercials) older than 25 years, under the Road Vehicle Standards (RVS) laws, by obtaining a Concessional RAV (Register of Approved Vehicles) approval to avoid strict compliance with modern Australian Design Rules (ADRs). This "rolling" rule means the vehicle must be at least 25 years old at the time of application, simplifying imports for enthusiasts but still requiring compliance with ADRs relevant to its original build year, plus some modifications for safety like VINs or child restraints.
However, you should be aware that leases lose significant value when they fall below 80 years. Leaseholders can also find it harder to mortgage or sell properties with leases below this length, which is why it is important to consider extending them before they fall below this length.
The liability associated with a Finance Lease is considered debt, which is consistent with previous Capital Lease treatment. For companies following IFRS, the new standard could cause some concerns over debt covenants as all leases will be Finance Leases and the lease liability will be considered debt.
Commonly, leases can be expressed to be, for example 3 x 3 (a three year term with an option for three years), 3 x 3 x 3 (a three year term with two option periods of three years each), 5 plus 5 (a five year term with a five year option) etc.