Important things to consider before buying an electric car

In a previous article we looked into the benefits of owning an electric car. Since that article was published there has been a number of articles posted by various news sources in Hong Kong about the topic including the introduction of Tesla's touted autopilot feature and the subsequent disabling of two key features due to safety concerns.

The staff at Kwiksure were extremely interested in this feature and the future of electric cars, especially when it comes to the technology powering these vehicles. These days, the most advanced tech can be found in electric cars and while it is progressing in leaps and bounds there are still teething problems. For example, this article from The Verge highlights a potential issue facing electric cars: Buyers considering these vehicles have more things they need to be aware of than purchasing other vehicles.

Because there is more to consider, we asked the electric car experts here at Kwiksure to share their knowledge on electric cars and provide advice to anyone considering purchasing an electric car.

1. Important things to consider before you buy

Because electric cars rely on electricity provided via the local energy grid the absolute first thing to consider before buying one is whether your car park at home (and at work) has charging facilities. Yes, you can use standard power outlets to charge your car's batteries, but in order to get the most efficient charging you are going to need an upgraded power system - typically referred to as a Fast Charge socket - that can only be installed by electricians.

Many parking facilities in Hong Kong, especially those in older buildings, will therefore need to be retrofitted in order to support the more powerful outlet. It is highly likely that you will be required to pay for this yourself. Fortunately, out in public there are now an increasing number of parking facilities in the city that offer charging stations, some of which operate by simply swiping your Octopus card and then plugging in! Check out CLPs informative website that explains more about how electric cars can be charged and where to find charging stations - both fast and slow.

Of course, while there are an ever increasing number of public parking facilities with charging stations, there may not be one in your office building so be sure to figure out where the nearest one is before you purchase your car.

Beyond the method of charging your car, the other most important thing to consider before you purchase an electric car is the battery. This is the single most expensive part of a pure electric car, which Ars Technica quoted to be "about USD 450 per kWh in 2014". To put this into perspective, the Nissan Leaf comes with either a 24 kWh or 30 kWh battery, which means it costs from around USD 10,800 to USD 13,500 for the battery alone. Because of the cost, you are going to want to make 100% sure there is a warranty on the battery and the coverage terms behind it.

The experts at Kwiksure also listed three things that any potential buyer should be aware of:

• Electric cars currently have a high repair cost - The technology behind these cars (batteries and software) is more advanced than almost every type of petrol car, so at this time repair should really only be carried out at the dealer. Some garages may advertise that they can maintain these vehicles, but most simply won't have the tools necessary to carry out anything beyond simple maintenance e.g., changing tyres or detailing. 
• Consider the range of the electric vehicle - If you drive extended distances every day, or even on occasion, this is something important to consider. For example the range of the Tesla is advertised to be 435 km in the brand new Model S. While this is impressive, if you plan on driving anywhere near this range you may find yourself struggling to find charging stations, especially if you head into the mainland.
• Software updates may be downloaded automatically - We touch on this a bit below, but essentially the Transportation Department has said that any software updates that tweak how the car is driven need to first be approved by the department. At this time, if say Tesla updates the software, it is automatically pushed to the car. If this update is not approved by the Transport Department you could be fined for using it.

2. What you should know about the Hong Kong Government's stance on electric vehicles

To date, the Hong Kong Government has taken a largely positive stance on electric vehicles. This is evident in the fact that they are waving the Motor Vehicle First Registration Tax on all 'pure electric' vehicles (cars that run only on battery) until 2017. The EPD (Environmental Protection Department), who is the main department in charge of promoting the use of electric vehicles notes that, "Enterprises which procure EVs are allowed 100% profits tax deduction for the capital expenditure on EVs in the first year of procurement." They also have aimed to start a new trial that will involve introducing zero-emission busses to the city by the end of this year.

While the stance of the government is largely positive and encouraging, the government has a number of regulations in place regarding electric cars. One such regulation is set in place by the Transport Department and states that the department must approve all software updates that would change the driving conditions of the car, largely set in place to ensure the safety of the vehicle. This came to light in early November when the SCMP reported that the Transport Department asked Tesla to remove their autopilot update to cars in Hong Kong. Users who are found to be using the auto-driving (automatic parking is approved for use) feature can actually be prosecuted.

Beyond all this, the government also looks at annual license fees for electric cars differently than petrol vehicles. For all pure electric vehicles the annual fee is calculated by the weight of the car rather than the engine size which is used for petrol vehicles. This means the annual fee is usually around HKD 1,000 while for most other cars it can be around HKD$3929 / $5794 / $7664 / $9534, depending on engine size.

3. What you need to know about in-terms of motor insurance

Because the internals of these cars are so different from internal combustion engines, motor insurers may offer different forms of coverage for these vehicles. Combine this with the fact that software and software-driven features may be viewed as a safety issue or even lead to accidents, it would be a good idea to secure comprehensive insurance before purchasing an electric car.

The experts here at Kwiksure can help you identify and purchase the best insurance for your electric car, so be sure to consider us if you are going to buy one. Or, if you have questions regarding motor insurance for your electric car, contact us today to learn how we can help.