HAVE YOU BEEN thinking of buying “alternative fuel” vehicles recently?
You would have noticed more and more hybrid, electric and natural gas vehicles on the roads these days. But before you rush of and buy one for yourself … you should consider the advantages and disadvantages of each one based on fuel, maintenance, cost and size.
These cars use two or more distinct power sources for propulsion such as electric motors and gasoline engines. And they are environmentally friendly because they use 30-60% less fuel than regular vehicles.
You can also save on fuel and benefit from several interest rate discounts. And because of its aerodynamics and lighter weight, you get higher gas mileage along with a higher resale value for its high demand.
However, hybrid cars come with a higher purchase tag; and maintenance can be quite expensive, because of their complex dual compulsion systems. They also come with less power, and a higher potential for electrocution or accidents.
Natural Gas Cars
These use compressed natural gas or liquefied natural gas to move. These are more fuel efficient as they cost about half the price of gasoline.
Plus, these fuels also improve air quality with fewer toxic pollutants. You don’t need to change the oil or do tune-ups often; and there has less wear and tear on the engine.
However, natural gas vehicles provide less mileage than gasoline. Also, they are somewhat slower and have few fuelling stations.
These cars use one or more electric motors to move. And, likewise, are energy efficient – converting 59-62% of the electrical energy from the grid; as opposed to gas vehicles which convert only 17-21% to power the wheels.
Because they have fewer moving parts, electric cars are easier to maintain and one-third cheaper to operate than gas vehicles. It is also eco-friendly and safe to drive.
However, one battery charge can last up to 50-100 miles only so electric cars are not ideal for long drives. They also take several hours to charge and most can only accommodate up to four passengers.
Electric cars also come with expensive batteries – costing around $30,000 to $100,000 each.
Behind the Scene
The government has announced a deal with Macquarie Leasing for cheaper finance to buy plug-in hybrids and electric vehicles, providing buyers a 0.7% discount. Eco-friendlier conventional cars will also come with a 0.5% percent. Abolition of the luxury car tax from battery-electric vehicles have also been are recommended.
Bottom Line: Whether you are a beginner, seasoned investor or business owner … you need guidance to maximise the financial areas of your life. Why not schedule a chat or call one of our local offices near you.
Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.