Could The Real Problem With EV Sales Be That Only The Rich Want One?

Disappointing sales of electric vehicles have plunged the segment into an old-fashioned price war -- one that some EV proponents fear could erode acceptance of the technology in the long term.

With the first wave of early adopters all but exhausted, carmakers are chasing a wider EV audience -- and not without some success. Sales of the Nissan Leaf more than tripled those of the previous months in March and April after Nissan slashed the price 18 percent.

Honda joined in last week, cutting the monthly payment on its zero-down, 36-month lease from $389 to $259. And by month's end Honda will increase the number of dealerships that will carry the Fit EV from 36 to more than 200.

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MorePower - 6/7/2013 5:09:49 PM

+2 Boost

No, "poor" people want the same things, in general, as "rich" people.

As with many things in today's society, it comes down to price vs perceived benefit.

The problem with ev sales is that you don't get a lot of car for the money. In addition, you are asking consumers to pay more for a vehicle that is perceived to be a less capable vehicle in terms of: size, quality, performance and aesthetics.

Example: I can pay $40k+ for a Volt, or I can pay $40k+ for: base 3 series, Ford Explorer, Infiniti G series, etc.

ParadoX - 6/7/2013 5:52:44 PM

+2 Boost

I am sure poor people want them, but poor people can't pay that for a car. a 40,000 dollar car is about 5-10,000 less than the average American's income (depending on how you calculate it). It simply is not affordable for the average American. Really it is only affordable for the wealthy and those living beyond their means.

Poor people would probably love to driver a luxury car, but affordability becomes an issue.

gatoreight - 6/7/2013 9:10:42 PM

+2 Boost

I'll make this real simple:

A common consumer wants a nice car for their money. If you have 45k to spend, there are much nicer cars than the Volt, Leaf, and Coda (40k LOL), so you go with a better car, because it's better. If you have 75k to spend, you either get a base Tesla Model S (basically), or a lot of car for the money with a fully loaded 5 series, A6, E-class. People with 100k+ to spend are buying Tesla's, but really, because it's the only true "green" conventional sedan at that price.

People aren't buying electric cars in mass because there are not enough options on the market, and the only class with a real standout is the 100K+, aka Model S range. . . . All lower price points are just more saturated with quality alternatives.

Give me a G37, all electric, without changing the price, make it compatible with superchargers, and yea, I'm in.

vdiv - 6/8/2013 12:19:59 AM

+1 Boost

You guys are missing the $200 a month that an EV driver does not pay for gas. That along with the much reduced maintenance more than pays for the higher purchase cost over the life of the car.

I know quite a few people that drive a Leaf or a Volt that are not rich by any sort of the imagination and one of the main reason why they went with a plugin is that it saves them money.

MorePower - 6/8/2013 1:01:12 AM

+1 Boost

You're missing the point that a lot of people can not afford the initial investment to buy the car to save the X amount of money a month.

Example: Going on the assumption that you can afford a $325k mortgage - Try getting a mortgage loan for a $550,000 home on the basis that with the mortgage tax deduction you should you, IN THEORY, have the ratios to afford it even though on the pure financial aspect of your income & expenses at present, you can not afford it.

vdiv - 6/9/2013 2:05:31 AM

+1 Boost

Cannot compare mortgages with car loans, which are almost always available with 0 down and do not have a tax-deductible interest. Cannot compare cars that depreciate in value to real estate that does not.

There are online calculators that compare the TCO of electric and "normal" gas cars over time.

Not to mention leases that can be had as low as $199/mnth for 3yr/36k miles. EVs for rich people?! BS

mini22 - 6/9/2013 1:50:13 PM

+1 Boost

Look-The technology is simply not there yet. As some have mentioned the oil and gas industry is heavily subsidized. Also there has been a tremendous investment in infrastructure over the past 70 yrs. If the US is going to be serious about electric vehicles there needs to be the same sort of subsidation as in oil and gas.It has to be a combination of greatly improved battery technology and a dramatic increase in fast charging stations.Also the price on these things simply have to come down.
so to sumarize
1) The price has to be similar to the price of a normal gasoline car.
2) Multiple charging stations in cities, highways, and rural communities.
3) A minimum range of 300 miles for the cheapest EV on the market.
4) Charging times need to be reduced to a maximum of 10 minutes.
5) EV's have to be able to function as the only car in a household. The availablility to to drive locally and on long trips.

Until these things happen EV sales will always be regulated to the rich.
Current EV technology is not economically feasible for the average person.But things are gradually improving. If and when Tesla will come out with a $35 grand sedan that will be a great start.