Latest news with #Vincentric
National Post
6 days ago
- Automotive
- National Post
VinFast: EVs Help the Planet and the Household Budget
Article content MARKHAM, Ontario — As rising living costs push Canadian families to seek smarter financial choices, electric vehicles like those from VinFast are emerging as practical options that promise long-term savings and stability in uncertain economic times. Article content Article content Canadian families are having to make tough choices as grocery bills climb by 3.8% year over year 1. With 85% now feeling like they're living paycheque to paycheque 2 and 61% reconsidering major life decisions due to rising costs 3, every purchase matters more than ever. Article content In this climate, consumers will have to calculate which vehicle makes the most financial sense over time. The answer increasingly points to electric. Article content The Numbers Don't Lie Article content Recent research reveals a compelling financial picture for electric vehicles. Clean Energy Canada found that EVs save Canadian drivers roughly $3,000 annually on average. Over ten years, that adds up to about $30,000 in savings 4. An electric hatchback or SUV can save $28,500 compared to its gasoline equivalent during the same period. Article content An earlier research from Vincentric supports these findings. They analyzed 40 electric vehicles against comparable gas models and came to the conclusion that 95% of EVs cost less to own over five years than their traditional counterparts 5. The savings come from lower fuel costs, reduced maintenance needs, and fewer repairs. Article content Long seen as an environmentally friendly alternative to gasoline cars, EVs are now emerging as practical financial tools for households watching every dollar. Yes, EVs often cost more upfront, but they can reduce the total cost of ownership, a growing concern for budget-conscious families. Lower fuel costs make a difference when gas prices swing unpredictably, and reduced maintenance helps when unexpected repair bills can derail household budgets. Article content This financial logic could be especially appealing to parents. The Spring Financial report found that 70% of parents with kids at home are reconsidering major decisions due to cost pressures 6. They're 40% less likely to afford emergency savings compared to other Canadians. Article content For these families, an EV's lower operating costs might help free up money for other priorities. Article content The psychological shift may be underway. Canadians who once bought EVs to feel good about the environment might now be turning to them to make better financial decisions. Article content Automakers recognize this change. VinFast, the best-selling automaker in Vietnam, for example, has structured its Canadian strategy around what budget-conscious buyers actually want. Their '3 Good' approach focuses on premium cars, affordable prices, and excellent aftersales policies. It's straightforward messaging for complicated times. Article content Currently, VinFast offers one of the longest warranties in the car industry, with their all-wheel-drive mid-sized electric SUV, the VinFast VF 8, covered for ten years or 200,000 kilometers, with unlimited kilometers on the battery under normal usage. This is financial insurance for families who can't afford unexpected repair bills. The warranty reduces long-term uncertainty, which matters more when household budgets are already stretched thin. Article content The brand's approach aligns with current Canadian priorities. Affordable pricing addresses upfront cost concerns. Well-equipped vehicles provide value. Strong service commitments reduce ownership risks. These aren't luxury considerations anymore; they're necessities for families making careful financial decisions. Article content VinFast's strategy reflects the broader market reality. Canadian buyers want EVs that make financial sense first and environmental sense second. Both matter, but economic pressures have reordered priorities. Article content The New Equation Article content Today's car buyers face a different calculation than they did several years ago. Environmental benefits still matter, but financial benefits often determine the final decision. EVs deliver on both, but the economic case has become the compelling argument. Article content In this environment, brands should recognize that they're selling financial security as much as environmental responsibility. They can win over customers by understanding what Canadian families need most right now: vehicles that help their budgets work better, not just make their carbon footprint smaller. Article content Article content Article content Article content Article content Article content
Forbes
02-05-2025
- Automotive
- Forbes
More Than Half Of All EVs Remain Costlier To Own Than ICE Cars, Study Shows
A new study shows that over half of the current fleet of EVs lose money in the long run compared to ... More their conventional-powered alternatives. Aside from their zero-emissions operation, electric vehicles have been touted as money-savers with regard to their energy and maintenance costs. Yet a the recent annual EV Cost of Ownership Analysis conducted by the automotive market research company Vincentric shows that 56%of the current fleet of EVs still lose money in the long run vs comparable gas-powered models, due in large part to their higher up-front costs and steep rates of depreciation. Vincentric compared ownership costs among 54 current EVs and found that 24 of them – 44% – had lower five-year ownership costs (with 15,000 miles driven per year) compared to comparable internal combustion engine models. This represents a slight decrease over the organization's study released in 2024, however, in which 49% of EVs investigated were cheaper to own over time than their ICE counterparts. EV sales have long suffered from higher purchase prices, and while the chasm between battery and gas-powered models' sticker prices has slimmed down in recent years as a result of lower manufacturing costs and increased market competition, only five models of those studied now qualify for the one-time $7,500 federal tax credit. Originally enacted to spur electric-car sales, Biden administration rule changes now limit the credit based on a given model's component and manufacturing sources and retail prices, and is further limited by a buyer's household income. There's speculation the Trump administration could eventually eliminate the credit altogether. On the plus side, the study determined that all 54 current EVs studied have lower five-year average energy costs than comparable ICE vehicles. Also, 74% of them enjoy lower maintenance charges, though this is down from 90% of all EVs in 2024. Because they utilize an electric motor and a simple single-speed transmission, EVs eliminate over two-dozen mechanical components that would normally require regular service. Driving an electric car means being able to avoid oil changes, cooling system flushes, transmission servicing and replacing the air filter, spark plugs, and drive belts. What's more, all of the EVs examined were determined to be more environmentally friendly than ICE models, with their emissions-free operation being more than able to offset the impact of greenhouse gas pollution created in the generation of electricity. Vincentric found that EVs have the capability to reduce CO2 emissions by over 4.4 metric tons, NOx emissions by over 2.3 metric tons, and VOC emissions by over 1.7 metric tons in a five-year ownership period, versus ICE models. 'While our latest analysis of EVs in America has shown some decreases in cost-effectiveness from last year, the 2025 study still found that 44% of EVs cost less to own over five years than a comparable gas vehicle,' says Vincentric's president David Wurster. 'This means that, despite the oftentimes higher upfront cost, a wide variety of EVs can still save buyers money over another gasoline-powered car.' Vincentric compared EVs to ICE models based on eight long-term ownership costs: depreciation, fees and taxes, financing, fuel, insurance, maintenance, opportunity costs and repairs. Of note, many states charge more for EV registrations to help compensate for revenue lost by avoiding gas taxes at the pump, and insurance premiums tend to be higher with EVs, largely because of the steep costs involved with replacing the battery and other high-tech components. Depreciation is traditionally the highest ownership cost for all models, gas or electric, though EVs tend to lose their value more quickly as new models joining the market with higher operating ranges and other improvements tend to drive down older versions' resale values. Affordable EVs were found to lose far less of their original values in dollar amounts than more expensive models, with the these 10 models losing the least amount of their values over a five-year term: As it turns out, despite their inherently high rates of depreciation, the biggest overall EV money-savers, compared to ICE models, are costly luxury models. As it stands, upscale cars of all kinds tend to have steeper rates of depreciation than more-affordable models, as well as costlier service and repair visits, which tends to even the proverbial playing field somewhat with regard to ownership costs. These are the five EVs Vincentric determined will save an owner the most money over a five-year period, compared to similar ICE models:
