Factors affecting the price of an electric car
A number of parameters will influence the purchase price of an electric car:
- Purchase assistance
- Type of electric car: city car, compact car, sedan, SUV, etc.
- Battery size (in kWh): a battery represents a significant proportion of the total cost of the vehicle, so the smaller the battery, the lower the price, and the reverse is also true.
- The condition of the vehicle: should you buy new or used?
- The make of the vehicle: makes from China are generally less expensive than their European equivalents.
We'll detail them below, throughout this article.
Purchase assistance
The ecological bonus
To encourage the sale of electric vehicles, whether new or used, the government has introduced a purchase subsidy. This will make the price of an electric car more affordable, offsetting the difference in list price with its combustion counterparts.
There are two ecological bonuses:
- for new vehicles
- for used vehicles
New vehicles :
The government's aim is to encourage households and businesses to buy an electric vehicle, and to give extra help to those with more limited purchasing power.
The first parameter to be taken into account when determining the amount of the ecological bonus is the price of the vehicle, including all taxes and including all desired options.
The two tranches are :
- less than €47,000 incl. tax
- over €47,000 incl. tax
60% of new vehicles sold are purchased by professionals and the remaining 40% by private individuals. The government has introduced tax incentives for businesses and, to compensate for this, offers incentives to private individuals to reduce the price of an electric car.
The results are shown in the table below:
| Categories | Amounts from January 1, 2023 |
|---|---|
|
New electric vehicles under €47,000 |
5 000 € |
|
New electric vehicles from €47,000 to €60,000 |
Aid withdrawn |
|
New electric vehicles over €60,000 (hydrogen-powered) |
Aid withdrawn |
|
Electric vans |
6,000 (or €8,000 if reference tax income ≤ €14,089) |
|
Used electric vehicles |
1 000 € |
Condition = New vehicle New vehicle emitting max. 20 g/km of CO2
- the vehicle must not be sold within one year of acquisition, be purchased or leased under a contract of 2 years or more, and have covered a minimum of 6,000 km (2,000 km for 2-wheelers).
Used vehicles :
Since 2020, the government has introduced the ecological bonus for the purchase of used vehicles. This initiative will encourage smaller budgets to overcome their apprehension about financing their vehicle, by benefiting from state aid. It takes the form of a €1,000 grant for the purchase of a used electric car over two years old.
The conversion bonus
The conversion bonus applies to all electric vehicles, plug-in hybrids, electric two-wheelers (or three-wheelers) and internal combustion vehicles with a Crit'Air 1 rating.
The amount of the bonus is €2,500 for companies with new or used electric vehicles, and a taxable income in excess of €14,089. For individuals with a reference tax income of less than €14,089, up to €6,000 can be granted for the purchase of a new electric car.
For more details, please consult our article dedicated to the conversion bonus.
Purchase subsidies for the installation of a charging station
To help finance the installation of charging stations, you can opt for the tax credit, introduced by the French government:
- credit up to 75% of the price of the equipment,
- up to a maximum of €300 (including installation costs),
- valid between January 21, 2021 and December 31, 2023,
- limited to 1 terminal per person,
- increased max to 1 second home.
In a multi-family dwelling :
You can take advantage of the ADVENIR programme's Individual Solution grant program ofAvere-France (Association for the Development of Electric Mobility)
Here are the conditions:
- Advenir-certified electrical installer and equipment,
- Charging station power less than or equal to 22 kWh,
- Equipped with an energy management system.
Remember: a private individual with a parking space or a private owner can obtainADVENIR assistance for 50% of the cost, up to a maximum of €960.
Changes in eligibility conditions for individual charging points in apartment buildings :
From August 1, 2022, the conditions of eligibility for individual charging points in apartment buildings change.
From now on, only single-phase T2S charging points are eligible for the ADVENIR program.
A quick reminder: the rate and amount of aid for this target remain unchanged. It is still equal to 50%, with a maximum amount of €960 (excl. VAT) per recharging point.
Which electric vehicle is right for you?
Now let's take a look at how to choose the right electric vehicle for your needs, based on category, model and, of course, price.
How much do electric city cars cost?
The electric city cars are conditioned by a technology suited to city use. Their small size is an advantage in an environment so overrun by automobile traffic.
As a result, the use of these vehicles in an urban environment will rarely be affected by the new environmental restrictions, which increasingly keep the most polluting and cumbersome vehicles out of the city.
Prices for electric city cars in 2023 range from €8,190 for the Citroën AMI, with a range of 70 km for the cheapest, to €37,600 for the Mini Cooper SE, with a range of 234 km.
How much do compact electric cars cost?
Now it's time to turn to compact electric cars. Electric cars in this category are just as efficient in urban environments as they are on long-distance roads.
This ability to meet a dual need also doubles the average price of compact models, which are nonetheless available at a reasonable price.
This may be a good compromise for you, if you often travel outside built-up areas.
How much can an SUV cost?
While demand for electric SUVs continues to grow, so does the variety of models offered in this category.
This success is due to their great autonomy. SUVs meet a large number of drivers' needs, but the only obstacle remains their purchase price. SUVs are slightly more expensive than electric city cars and compact cars.
After all, for everyday use in the city, the choice of an SUV remains rather aesthetic. But if you're a frequent freeway user, electric SUVs are a great alternative.
What about electric sedans?
At the top of the ranking is a wide choice of electric sedans. Unlike the models discovered earlier, sedans are reputed to be the most complete and versatile on the market.
Their acquisition may require a certain investment, and should be a well-considered decision. But it's worth remembering that their acquisition cost is perfectly in line with the power and capacity these vehicles offer.
How much do electric commercial vehicles cost?
In addition to choosing an electric car for personal use, electric vans are very practical and perfectly suited to professional use.
Why is it so urgent to replace your commercial vehicle with its less polluting electric equivalent?
According to some reports, more than half the owners of electric commercial vehicles refuse to undergo the anti-pollution technical inspection. They simply turn a blind eye to the environmental impact of their pollution.
It's an act that can be condemned to a heavy fine, not to mention their "outlaw" aspect.
What's more, proposals for the price of utility vehicles range from €20,000 to €80,000. The price is therefore less of a constraint, especially if the purchase is for a secondary vehicle within the household.
So it's good news that there's something for everyone's wallet.
Electric battery costs
The price of an electric car battery
At present, the majority of electric vehicles are equipped with lithium-ion batteries. To get the best capacity and longest life out of them, the best choice is to opt for large batteries.
Then, as for the price of the battery, it will depend on its components, as well as the cost of the latter. It's worth noting that the price of these components varies greatly from year to year, and downwards.
The main factors are :
- price per kW (kilowatt),
- the price of lithium,
- the price of cobalt...
If we were to estimate the budget to be allocated to this main part of the electric vehicle, it would be around €30,000 for the purchase of a new vehicle.
Aware of this high price, manufacturers have introduced guarantees that you can take advantage of when purchasing a new electric car.
Warranties
If the price of a new electric is high at first glance, it's important to know that the warranties offered by manufacturers can cover the cost of this part. These warranties can range from 5 to 8 years, so you're fully covered for battery replacement.
New or leased battery?
Taking innovation into account, the choice of battery can be made taking into account the condition of the car. Whether it's brand-new or has already been driven many kilometers, it may not require the installation of a new battery. The advantage of rental batteries is that this alternative reduces the cost by two-thirds, if purchased out of warranty. The price of a battery would then be approximately €10,000.
How much do charging stations cost?
Of course, the cost of installing charging stations is not the same as buying a battery. But it's still an expense to include in your bill.
You can recharge your vehicle at public charging stations, or at a home-installed charging station.
You can choose between the reinforced electrical socket, the Wallboxand the standard socket, depending on what suits you best.
For the price of a reinforced electrical outlet, you'll need to invest an average of €100, but you should be aware that charging time on this type of terminal could range from 4 to 10 hours.
Wallboxes are the most recommended choice, and cost between €500 and €1,200. On the other hand, this investment won't be in vain, as choosing a Wallbox will save you several hours' charging time.
Then there's the third option, which is to connect your electric car's battery to a standard socket. In this case, all you have to do is buy a cable to connect your car to the standard socket, and pay for it on your electricity bill.
Find out more about corporate charging stations!
(You can also opt for a collective charging station, by mutual agreement with your neighbors. This is a possible solution).
