Is buying the RAV4 EV a good value decision?

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busyx2

New member
Joined
Aug 18, 2014
Messages
3
Hi,
I am trying to convince myself that the RAV4 EV is a good financial decision. Please help!

Assuming (after contacting several Toyota dealer), I can obtain the 'unlimited lease with no money down'.

I believe the lease cost is about $500/month + $1500 for charger. For 3 years, the total spent ~ $20000

We have 2 cars and the EV would only replace 1 car, assuming other than daily commute the furthest guy gets the EV and all weekend drivings on the EV, I looked at my comparison:

VW TDI (drove approx 90,000 miles in 5 years)
36 MPG actual mileage, $4.00/gallon Diesel = total fuel cost for 90K = $10000
Oil change etc regular maintenance = $70/oil change * 9 + transmission flush x 2 etc = $1200
New car with tax OTD = $32000
Current KBB private party price = $14000

Total cost of owner ship for 5 years @ 90K miles = $29200

Compare the above with RAV4 EV, Total cost for 3 years = $20000. It seems no savings over gas/diesel car. I am simply getting the benefit of HOV sticker and being Green.

Also, I am assuming that the RAV4 EV costs the same to insure but if the value of the car is tied to Insurance cost, I will suppose I may pay more for insurance.

Please comment on my math above and is there anything I am not counting in?

The Honda FIT EV $259 lease is much better deal, but it's nearly impossible to get it.
 
Not everyone buys these based solely based on a financial payback. Consider doing it because it's just better than buring dinosaurs.
 
If you are in CA don't forget the $2500 rebate.

Also the freedom to drive anywhere local without having to worry about mileage costs is priceless!
You can even go as far as figuring your time savings not having to go to the gas station (like Tesla does).

You can also debate whether the EV will be worth more than the residual in 3 years.
 
busyx2 said:
I believe the lease cost is about $500/month + $1500 for charger. For 3 years, the total spent ~ $20000
That's a little high. Dianne's latest unlimited mileage lease with no money down is ~$460/month for 35 months. Adding 8-9% to that for tax then taking off the $2500 state rebate brings the 3 year total to just about $15,000. $1,500 for a charging station is also high, unless you also need a difficult installation. Plus it's still good to charge your next electric car or sell after your 3yr lease is up, and any upgrade to your home's electrical infrastructure is value added to your home and not a sunken cost like a lease payment (i.e. depreciation.)

Also, you're comparing a small, fuel efficient car against an SUV. That "utility" in SUV is worth something! And those HOV stickers are definitely worth something! (I saw the value estimated at about $3k somewhere.) And here's an interesting TCO analysis someone else did that showed the Rav as a clear winner against several other cars.
 
I am in N.CA, not sure if thats why I have slightly higher number, but $460 plus tax should be nearly $486 and I did not account for additional Electric bills. I would say 486 x 35 is $17K already. I am just wondering if I had missed any major incentive or big ticket items.

Unless I am mistaken and the lease payment is closer to $430 plus tax. Not seen such low quote yet, although there is a $409 (previously I type $309 was a typo) per month with $3500 down which may be the lowest TOC deal I got.
 
I obsessively ran a bunch of figures through a spreadsheet before I decided on the Rav4 EV lease. With a 72 mile round trip commute, I determined that the Rav4 EV is going to cost me about $70/month to own over the 36 month lease over what I would pay with my 2006 Pontiac Vibe. My calculation includes what I will get for selling the Vibe this week, 50% off the bridge toll, and gas savings. That figure doesn't include the inevitable repair and high maintenance costs associated with the Vibe (8 years old and 160,000 miles). It also doesn't include the charger (ended up costing $750 all in, including installation).

For me, the value is in the white stickers (time savings and 50% off the bridge toll), having a new comfortable car for a long commute, and knowing that the more I drive, the more I save at $.09/kWh. The other upside is the intangible of trying something new and taking a little risk with newer EV technology. The downside, which is well discussed, is the range limitation.

I did the calculations side by side with a plug-in prius and a standard prius, the Rav4 beat both in terms of value. I think it's largely a function of how long my commute is.
 
You didn't include the $2500 state rebate. Your EV Charger costs are tax deductible. I calculated my unlimited mile lease costs to be $15K OTD after state rebate (I got a free EVSE). I assume you're talking about the Passat.

Here's what you didn't talk about:

1. Cargo Space and leg room
2. Torque, 0-60 and overall vehicle performance
3. Time not having to go to gas station or oil change
4. Free maintenance and warranty
5. Free roadside assistance
6. You're not driving a Passat which is basically a piece of plastic with four wheels on it.

If it's all about cost savings go buy a Prius C.
 
The electric vehicle works out better by my calculations. Which is why I got one.

Previous comments mentioned the $2500 CA state refund, which you get whether you buy or lease as long as you keep the vehicle at least 3 years. Otherwise, I don't think you forget anything big. However, I think your estimate for charger installation is high. Also, it skews the numbers when you compare expenses over 5 years versus 3 years.

By pro-rating your VW costs for fuel and maintenance, I calculate $2240/year (or $6720 for 3 years). Compare this to expense to install an EV charger and buy extra electricity and of around $3550 over 3 years. I assumed you would be able to claim all of the nonrefundible tax credit for 30% of purchase/installation of home charging station (so it would only be around $1000), that you would drive 18,000 miles/yr, and that your overnight electricity costs for the additional 700kWh or so per month would be billed at $0.10/kWh (because you would switch over to PG&E's EV rate schedule). If you also figure in the state's $2500 refund, then the total EV expense comes down to $1050 over 3 years. I private messaged you with my cell phone number if you want more info on my calcs.

Comparing the overall cost of buying/selling vs a 3-year lease are about the same (I didn't bother pro-rating these), maybe a little better for the Rav4: $32,000 - $14,000 = $18000 old car purchase and KBB sale of the used car. Approx $500/mo x 35 months = $17,500 new car lease (first month's lease payment is rolled in with lease initation costs, so you only end up paying 35 monthly payments).

Insurance and Registration costs are of course related to the value of the car. In this case, the $50k RAV4 is likely going to run you a more than the $30k VW you are comparing it to. Just the nature of getting a car with a higher sticker price. But I think the expense and leasing savings more than cover it.
 
Most people will not be eligible for the tax credit on the charging station in the same year as the $7,500 for the car. The car offsets AMT, the charging station does not. So, don't count on that one.
 
rav4buyer said:
You didn't include the $2500 state rebate. Your EV Charger costs are tax deductible. I calculated my unlimited mile lease costs to be $15K OTD after state rebate (I got a free EVSE). I assume you're talking about the Passat.

Here's what you didn't talk about:

1. Cargo Space and leg room
2. Torque, 0-60 and overall vehicle performance
3. Time not having to go to gas station or oil change
4. Free maintenance and warranty
5. Free roadside assistance
6. You're not driving a Passat which is basically a piece of plastic with four wheels on it.

If it's all about cost savings go buy a Prius C.

Isn't that the tax credit for home charger expired in 2013?
 
According to my recent research, there are no current tax credits for EVSE equipment unless you are a business.
 
miimura said:
Most people will not be eligible for the tax credit on the charging station in the same year as the $7,500 for the car. The car offsets AMT, the charging station does not. So, don't count on that one.

I think he was talking about leasing, not buying, so he wouldn't be eligible to claim the $7500 credit.
 
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