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Considerations before you Buy an EV in Port Dover

Considerations before you Buy an EV in Port Dover

If you look around, you will start to notice more electric vehicles on the road. The default vehicle is Tesla but the big 3 carmakers are also introducing their all-electric vehicles.  You may want to reconsider buying one, at least right now.

 

Our Port Dover car loans team outlines some of the main things you might want to consider when planning to buy an EV in Canada.

 

Questions regarding reliability

 

Well over 100 years ago, carmakers were trying to build an electric car but decided to go with the internal combustion engine instead.

 

While the carmakers are revisiting the dream of electric, some pressing challenges need to be addressed.

 

Electric vehicles operating in harsh Canadian climate

 

If you live in a place with warm weather like California, then having an electric car may be a good option. However, Canada has severely cold winters that last for months.

 

The Tesla, for example, tries to overcome the challenge of cold weather by using battery power to keep the baseline temperature above freezing.  This is a short-term solution and will sacrifice the total range you can drive.

 

While you can drive an EV in Canada during the winter, you will need to plan your trips and find charging stations that provide shelter from the elements.

 

Lack of charging stations across Canada

 

The number of charging stations being rolled out across Canada has increased but is not where it needs to be.

 

It can take over 2 hours to fully charge an EV, sometimes longer depending on the type of car you are driving. If the number of EV users increases dramatically, you will have lineups of people waiting for a chance to charge their car.

 

These growing pains are to be expected but imagine driving to an area in Canada, where there is a charging station on the map. Only to find out that the station is not working properly! While you could call CAA for a tow, it is a situation you do not want to deal with.

 

Financing the purchase of an EV

 

The auto loan industry has gone through significant automation but has not yet adapted to financing the purchase of an EV. Some websites will give you quotes on car loans but to get competitive loans when you buy an EV, you would need to speak with a representative from a local dealership.

 

The reason that underwriting loans for these vehicles are challenging stems from the lack of historical data. Lenders can project the fair market value of a car 5-7 years from now.

 

Lenders need to be able to project this depreciation so they are never in a situation where the collateral in this case the car is worth less than the total amount owed.

 

These same lenders are also more cautious when financing these vehicles. So you will need to have a very strong credit score and stable sources of income to get the best possible terms when you buy an EV.

 

By enlisting the help of a reputable, local dealership you will have a much better chance of buying an EV but perhaps you should consider going with a hybrid.

 

The hybrid vehicles currently on the road are fuel-efficient and very reliable. By the time you finish paying off your new hybrid, the EVs should have worked out most of their bugs.

 

When you’re ready for a car lease or loan, get in touch with the Port Dover auto loan experts at Northway Ford for great deals on auto finance.

 

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