Day 50 - Cost Benefit Analysis

Below is a little spreadsheet I did out for myself in advance on making my decision to purchase a Nissan Leaf:




These figures are based on Petrol prices and Car Tax prices from November 2010. As you can see from the highlighted totals my ownership of Pepé isn't exactly saving me a huge amount of money. But you must understand the purpose of this spreadsheet. I didn't want to see if I was saving money. I wanted to see if I could afford the purchase of this vehicle. Obviously I would prefer if I were saving money. But, as you can see, I'm not really. So the question remains: why would you want to buy a range-limited vehicle?

Well, the answer to this question is multi-part. Firstly, the range of a BEV is only a major issue if you are commuting more than 120km a day, which I don't. Longer trips are possible with the help of a growing charging infrastructure. So range wasn't a big issue for me. Secondly, I prefer the fact that my car not add to Ireland's already exceptionally high carbon footprint. I have to admit, this was not my biggest concern, but has become more and more important (and noticeable) to me since purchasing Pepé.

Thirdly, cheaper running costs! Yes, the loan for this car is higher than my previous car. But the running costs are so much less. The cost of energy, the cost of insurance, the cost of tax, and most significantly the cost of maintenance are all reduced. In fact, if the first startling fact from the spreadsheet above is that I am not saving much money, the second should be the dramatic decrease in running costs for this car! I've had Pepé for fifty days now and I doubt I have spent more than €40 in energy! I have received over €300 back from my insurance company and I easily paid off my annual car tax bill upfront using two months worth of Car Tax that I had started to save for my previous car. Fourthly, it's a much easier and far less stressful drive! I cannot convey to you on these pages how easy it is to drive an electric car. It has all of the benefits of an automatic with none of the costs. It has a luxury feel in a family-sized hatch-back. and it is certainly the safest car I have ever owned!

So, I am playing a long term game here. Yes, Pepé's initial cost is swallowing up many of the immediate reduction in running costs. But this assumes that petrol prices will remain static. Once petrol starts to increase again (and it will!) my cost benefit analysis starts to improve. Pepé is a five year investment. And I sincerely believe that this investment is worth every cent!