If you’re in the market for a new car, know the following:
Cars in the future are going to be electric and autonomous.
How quickly we get there is anyone’s guess.
If we look at electrification, over the past 5 years, global sales have grown at an average rate of around 60% annually.
China says they’re targeting electric vehicle sales to account for 25% of total car sales in the country by 2025.
In Norway, electric vehicle sales constituted 55% of all new vehicle sales in 2019.
So the trend towards electrification is rather clear.
The average time people keep their cars is around 6 years.
So now the question becomes, if you buy a non-electric vehicle today, what are the chances you are going to get a decent price for it 6 years from now?
I’d say, not so good.
It’s hard to forecast how much demand will remain for internal combustion engine cars 6 years from now, and the answer to this question will likely vary largely based on where you live, but I’m going to venture to guess that the market will not be favorable for the seller.
Now you might be asking: well aren’t electric vehicles expensive?
While their starting price is on average higher than internal combustion engine cars, their smaller cost of ownership makes up for the difference in price quickly.
A 2018 study from the University of Michigan’s Transportation Research Institute found that electric vehicles cost less than half as much to operate as gas-powered cars.
The average cost to operate an EV in the United States is $485 per year, while the average for a gasoline-powered vehicle is $1,117.
According to a cost comparison study conducted by Loup Ventures, the cost per mile over a 5 year period of owning a Tesla Model 3, a Toyota Camry LE and an Audi A5, was $0.46, $0.49, $0.89 respectively.
So from a cost perspective, if you’re in the market for a new sedan, it seems to me that if you’re able to buy a Tesla Model 3, there’s no reason not to.
This and we haven’t said anything yet about Autonomy.
According to CEO of Tesla Motors, Elon Musk, Tesla cars have been designed to serve as robotic taxis since October of 2016.
Since 2019 they’ve equipped all of their new cars with a Full-Self Driving computer that would make Full-Self Driving possible.
According to Elon’s prediction, Full-Self Driving will be rolled out, albeit on a very limited scale, in 2020.
How ubiquitous Full-Self Driving is in 5 or 6 years is anyone’s guess.
Although I have a feeling that the rate of adoption will surprise many especially considering the safety enhancements that full-self driving brings.
Considering full self-driving is ultimately where things are headed in the next 5 years, why would anyone buy a car that didn’t have the capacity for full self-driving?
The question you should ask is: If you own a car that isn’t able to be fully self-driving in 6 years what will this mean for it’s resale value?
Will you be selling a horse in the midst of the public’s transition to automobiles?
Further still, if you buy a Tesla, full-self driving may eventually offer the the car owner the opportunity to actually earn money from their car through adding their car to a robotaxi network.
In the event that Tesla cars become income-earning vehicles, they may actually appreciate in price.
In conclusion, I think if you’re going to purchase a new car, you shouldn’t buy a car that isn’t both electric and has the hardware to become fully autonomous.
If you need a car but can’t afford to buy one with the criteria I mentioned, I would simply go with a used car and save up until you’re able to buy one that does.
Note: I don’t work for Tesla. I’m not getting paid by Tesla. I do own shares in the company.
If you’re looking for Halal funding to buy a new Tesla or anything else go to fundmebff.com