Whether you are motivated by the desire to be more environmentally friendly, or whether you are simply sick of paying for gas, an electric car is an increasingly viable option for people across the country. Electric cars have a few major differences from traditional cars, but they should be financed roughly the same. While some lenders are hesitant at accepting loans for electric cars (for reasons that will be discussed) Complete Auto Loans successfully lends money to electric car buyers from all over the country.
Why do Some Lenders Refuse to Finance Electric Cars?
In the early days of electric cars, reliability was a major issue. The batteries that are inside electric cars were new technology, and they didn’t last very long. Even the most expensive electric car could go around five years before the battery degraded to the point that it was no longer useable, and new batteries were not cheap. Additionally, some of the first electric cars had moderate problems with drive train reliability, and some even had cabin fires due to faulty battery and wiring design. Lenders remember the early days of electric cars without appreciating the huge strides that electric cars have made in the last decade. In 2013, electric cars took off throughout the world with the Consumer Reports selection of the Prius as the most reliable car in America and the Tesla Roadster as the best car in the country.
Benefits of Electric Cars
Electric cars are far cheaper to operate, on a per mile basis, than traditional cars. In areas with cheap electricity, electric cars can be dramatically less expensive than their gas-consuming counterparts, and many municipalities have free charging stations throughout the city to encourage their usage. Because of their zero emissions, electric cars are more environmentally friendly and they often qualify for tax breaks and other financial incentives. Electric cars have a huge amount of torque, and they accelerate very quickly – the Roadster is actually one of the highest performing sports cars in the world!
Downsides of Electric Cars
The technology curve of electric cars is still in its early stages, so one can expect them to develop and continue to improve throughout the next several years. In the mean-time, there are a few things you should consider before your purchase. Electric cars are usually more expensive than gasoline powered cars at first, and they tend to depreciate faster due to the high levels of obsolescence forecasted. Electric cars are difficult to service in parts of the country without many sales, and servicing the motor/charging system can be expensive and can require specialized mechanics at the dealership.