Buying an electric vehicle? Keep these points in mind

Buying an electric car is an important financial and environmentally responsible decision. Here are the things you need to check before you buy an electric car

Today, people are growing increasingly conscious of the environment and are looking at making eco-friendly choices. One major shift is the preference for electric cars. There are only a few vendors in the electric car space in India. But many financial institutions are now open to financing the purchase of electric cars. IDFC FIRST Bank’s car loan is a convenient funding option.

Before you choose an electric car, here are a few things that you need to keep in mind: 

1. Check For Charging Points

In India, electric vehicles are still in nascent stages; the charging infrastructure is minimal. As of March 2021, there are 1800 charging points in India, which is very little compared to fuel stations. There may be stretches where one may not find a charging point easily; this gives the owner no option but to get external help. 

Tip: If you plan to use your vehicle only within the city, there may be sufficient charging infrastructure; however, some remote locations do not have the required infrastructure. This is a fact that you should account for before you decide to buy an electric car in India.

2. Compare Features Of Different Brands

The manufacturer could specify driving range figures, but it may not be prudent to rely on this information alone. Given that the internet provides rich insight, you should look for reviews online and understand the driving range of EVs on prevalent road conditions. A driving range of over 100 km will be enough for your daily drive requirements. 

Tip: If you intend to buy a high-end electric car, the driving range is typically over 400 km. You can compare the features across various vendors and choose the optimal one.

3. Choose The Right Mode To Finance Your Electric Car

The average cost of an electric car is between Rs. 21 Lakh to Rs. 1 crore; often, you may need to avail external finance to fund this requirement. Most financial institutions extend auto loans to electric vehicles with similar or the same features as those of fuel vehicles.

4. Assess Financial Benefits To Make This Purchase Easy On The Pocket 

The purchase of an electric car is an eco-friendly and environmentally responsible decision; the Government recognises this aspect and extends incentives and tax benefits. These financial benefits can reduce the overall cost of electric cars. Make sure to avail all these incentives and tax benefits on your electric vehicle purchase. 

Another benefit that the Indian Government extends towards electric vehicles is the reduced Goods and Services Tax (GST); this again contributes to the reduced overall cost of electric cars. Your auto loan provider can help you in this regard to ensure that you avail of the benefits. IDFC FIRST Bank executives can help you with this in addition to providing your auto loan to finance your vehicle.

You can complement your electric car purchase by getting a FASTag online. Pay for parking, get instant discounts on fuel purchases, and get auto recharge benefits with IDFC FIRST Bank's FASTag, FIRSTForward. To know more, click here.

5. Latest Technology 

Electric vehicles have complex and advanced technologies such as powertrains, etc. There is a lot of innovation happening in this space, and cars are constantly being equipped with the latest technology. If you purchase an EV, make sure to assess if the subsequent upgrades in technology can be adapted to the current model. 

Some manufacturers offer free and regular improvements. Ascertain all the technical details before you avail electric cars; it is an important financial decision. 

Buying an electric car is an important financial and environmentally responsible decision. Evaluating the nuances is pertinent to ensure that you do not regret the decision later. Electric cars are likely to become the future of mobility; it is only a matter of time before the infrastructure improves and cost efficiency kicks in.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.