1.Economic patriotism: Part of the money spent on gasoline leaves the country. Money spent on a domestic fuel (coal and natural gas to produce electricity) circulates longer in the USA. I don't want to be part of the next oil shortage or oil embargo.



2.Prepare the market: If 100,000 vehicles are using standard batteries in 2007, then battery companies could start building a better battery for those vehicles.

3.Guilt: As a taxpayer, I pay for soldiers to protect oil pipelines. If I use electricity, I??m not creating demand for more gasoline, so fewer soldiers might be needed. If those soldiers are sweating in the desert, why shouldn??t I as a consumer sacrifice a bit and pay more for my fuel?

What are the economics? Does the cheaper fuel actually pay for itself? What are the actual costs of owning an EV?

Let??s say that it costs $15,000 to buy a car chassis, jettison the engine and put in an electric motor and batteries. Most conversions will cost less, but let??s start with that assumption. Assume 8% as the cost of borrowing the money.

$15,000 x 8% = $1200 per year or $100 a month to buy an EV.

Travel needs: 30 miles per day x 30 days = 900 miles per month

Insurance: An extra $400 per year or $34 a month to add a car to my insurance policy

Gasoline at 25 mpg

900/25 = 36 gallons per month

Cost at $3 per gallon = $108 per month ?? 12 cents per mile

Cost of electricity 10 cents per kilowatt-hour

Three Miles per kilowatt-hour --- 900/3 = 300 kilowatt-hours per month

3.3 cents per mile for electricity.

300 KWHr x 12 cents per KWHr = $36 per month for fuel

CategoryGasoline at $3 per gallon

Miles driven in a month900

Fuel use25 mpg

Cost per mile12 cents per mile

Amount of fuel36 gallons

Cost$108

Insurance for Electric car--

Maintenance

Oil change etc. 4 cents per mile$36

Amount spent per month$142

Monthly cost difference between gasoline and electric170 -142 = $28 extra per month for the EV

CategoryElectricity at 12 cents per KWHr

Miles driven in a month900

Fuel use3 miles per KWHr

Cost per mile3.4 cents per mile

Amount of fuel300 KWHr

Cost$36

Insurance for Electric car$34

Maintenance

Oil change etc. 4 cents per mileNo oil to change, no tune-ups

Amount spent per month$170* including the $100 per month to buy the electric car

Monthly cost difference between gasoline and electric

Analysis by S. McCrea, WhyWaitForDetroit.com September 28, 2006 roadlovers1@gmail.com

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