The new number plate arrives on cars in September — and it may be time to reconsider the idea of an electric car. Consumers Buying Electric Cars As New Number Plate Reveals. Cars As New Number Plate Reveals
EV prices are falling as manufacturers ramp up production and the technology becomes more affordable. Consumers Buying Electric Cars As New Number Plate Reveals.
But many consumers remain skeptical, according to a new survey from the Consumer Federation of America (CFA). The reason?
1. The Technology is Expensive
For people who want to go green, there are federal, state, and local incentives that can make it much less expensive. Incentives include rebates to help pay for the car, discounts on charging equipment and other accessories, and special access to high-occupancy vehicle lanes that reduce commute times.
While the lockdowns stalled manufacturing and production, they did not halt demand for electric cars, which remained strong in countries where existing policy support schemes continued. This resilience was due to a combination of factors including strong consumer demand for lower-emission vehicles and purchase incentives.
For example, Mueller overestimated how much of a tax credit she would be able to claim for her new car. She is not alone; a recent study by researchers at the University of California, Davis, found that 13 percent of all EV owners overestimated their federal tax credit. This misunderstanding could hold back the growth of EVs. If middle-income buyers are not able to claim the full incentive, it will be harder for them to jump on the bandwagon.
2. People Expect Incentives
When strong policy support was in place — such as purchase incentives and regulatory instruments — electric car sales performed well. However, as the Covid-19 pandemic arose, many governments decreased or eliminated these incentives to help mitigate the effects of the crisis on the auto industry and the broader economy.
In the US, Congress recently introduced a bill to lift that cap and also allow EV buyers to claim their credits at the dealership instead of having to file taxes. This new “point-of-sale” credit will be available for families with any income, unlike the current version that has a cap based on household size.
This type of incentive is critical for middle-class drivers who are often the most likely to switch from gas to electric vehicles. In fact, a recent study by University of Wisconsin’s Cheng He, University of South Carolina’s O. Cem Ozturk, Georgia Institute of Technology’s Chris Gu and Chicago Booth’s Pradeep K. Chintagunta found that such subsidies are cost-effective and provide a substantial benefit to middle-class households.
3. The Technology is Perceived as a Luxury Product
The research methodology involved a thematic analysis to extract the barriers that are preventing consumers from purchasing electric cars. This was preferable to a survey as it allows for a much more in-depth understanding of the barriers to adoption.
A common theme that emerged was the perception that electric vehicles are a luxury product. This is due to the fact that they are more expensive than conventional cars, and they feel that this is a waste of money. They also feel that the electric car culture is a hipster one, which they dislike.
Consumers were also averse to the battery leasing policies that companies use. This was because they felt that the cost of leasing the vehicle could be difficult to manage, especially if they have a low credit score. They also feared that the battery would degrade unpredictably with extensive usage and harsh weather conditions.
4. The Technology Has a Short Lifespan
The fact that EVs are more expensive than traditional vehicles is one reason why many consumers hesitate to make the switch. However, this is a trend that should reverse itself as battery technology improves and prices decrease over time.
This concern is why it’s important for governments to offer incentives for people to purchase or lease electric cars.
Until then, the number of private consumers buying EVs will remain slow. The good news is that the supply of EVs has doubled since the pandemic began, giving consumers who are thinking about switching to a greener car more options here needs read more hear.
