Which Is Cheaper To Own, EV or ICE?, Inflation Down, Unlocking EV Range

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It’s a new week and we’re in a new(ish) location, coming to you live from the 3rd Annual Beaver Toyota of Cumming Charity Golf Tournament. We’re covering a surprising JD Power study that shows that EVs are cheaper to own than ICE vehicles, how the auto industry is influencing inflation, and Tesla “unlocking” extra range for $1000+.

Show Notes with links

• While the high upfront cost of EVs deters many buyers, a J.D. Power analysis reveals that EVs are cheaper to own than gasoline-powered cars over five years in nearly every U.S. state.
  • EVs cost less to own long-term than internal combustion engine (ICE) vehicles in every state except Maine and West Virginia.
  • J.D. Power considered transaction prices, taxes, regional gasoline and electricity rates, and zero-emission vehicle incentives.
  • EVs averaged $57,584 in Q1 2023, about $13,000 more than gasoline vehicles.
  • In some states, EV owners can save over $9,000 in five years.
  • Some dealers, like William Knowles, COO of Maroone USA with 7 dealerships in Colorado, see that the entry price of EVs is still prohibitive. "Even with the EV tax credit and incentives, it's just really hard to come close [to a low priced ICE vehicle]." 
  • He also noted that most EV buyers aren’t choosing between an EV and an ICE. They know they want an EV from the start.

• There’s some good news on the inflation front. The Consumer Price Index (CPI) fell by 0.1% from May, slowing the annual inflation rate to 3% from 3.3%. This marks the first monthly decline since May 2020, driven by falling gas and car prices. 
  • The core CPI, which excludes energy and food, also slowed more than expected, rising only 0.1% from May.
  • Shelter costs, a significant component of the CPI, have started to ease, with the shelter index rising only 0.2% in June, the slowest increase in three years.
  • Wells Fargo noted that consumers are feeling increasingly strained, making it harder for businesses to pass price increases on to the consumer.
  • Auto insurance rates have surged by 19.5% over the past year, with the national average for full coverage nearly $2,300 annually or $190 monthly, driven by higher vehicle repair costs, riskier driving behaviors, and increased attorney involvement in accident claims.
  • These rising insurance rates, coupled with higher gas prices and vehicle maintenance costs, are straining household budgets and dampening the typically busy spring and summer car-buying season. Rates are expected to stabilize in 2025.

• Tesla is now offering an “energy boost” software upgrade for recent Model Y RWD owners to unlock additional battery capacity at a cost.
  • When the SR model was canceled, Tesla announced the batteries were larger than advertised and planned to offer software unlocks to increase range by 40-60 miles for $1,500-$2,000.
  • The upgrades are now available, with some owners seeing offers for $1,600 to add “up to 50 miles” and others for $1,000 to add “up to 30 miles.”
  • These figures

Hosts: Paul J Daly and Kyle Mountsier

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