We predict, based in Ann Arbor, Michigan, is a company that uses data analytics to give manufacturers the information they need to make accurate business decisions. He works with manufacturers behind the scenes using actual repair and maintenance data to help manufacturers spot potential issues faster.
On October 28, We Predict released its Real cost Deepview analysis – its most comprehensive study to date on the true cost of maintaining an automobile. Here’s the takeaway from this report: “After higher costs in the first year, service costs for electric vehicles drop 30% below the costs of gasoline vehicles at three years. “
We Predict is doing unusual things. It includes items covered by factory warranties, but not collision repairs. Dollar figures include, but are not limited to, direct consumer spending. Including manufacturer costs gives a more accurate picture of what it really costs to keep a vehicle in top condition, CEO James Davies recount Forbes.
The We Predict survey adds up the total money spent by manufacturers and vehicle owners on repairs and maintenance during the first three years of ownership. The size of its sample is enormous. The study is based on 65 million maintenance or repair orders for 13 million vehicles of all kinds, not just electric vehicles.
We Predict calls its 36-month study a “second owner study” because most leases are 36 months long. Millions of non-rental vehicles go to a second owner after 36 months. Electric vehicles are also very commonly rented.
We Predict’s cost calculations include maintenance, unscheduled repairs, warranty and recalls, service campaigns, diagnostics, software updates, and warranty costs on factory-installed options, Davies explains. Other routine ownership costs, such as gasoline or recharging electric vehicle batteries, local and state inspections, seasonal tire changes and insurance, are not included.
The survey found that the average amount spent on maintenance per EV in the first three years is $ 77, which is significantly lower than the average of $ 228 for gasoline vehicles. “Consumers have high expectations of electric vehicles in terms of cost of ownership,” said Renee Stephens, vice president of North American operations for We Predict. “While the costs at the start of the ownership period are higher for electric vehicles, they ultimately become more economical for both the owner and the manufacturer. Over time, less maintenance on electric vehicles compensates for higher costs in the first year for diagnostics, repairs and campaigns.
The study includes over 13 million vehicles across 400 models, with results based on 65 million maintenance or repair orders totaling over $ 7.7 billion in parts and $ 9.5 billion in costs. labor. Here are the main findings of the report:
- Data from Deepview shows that electric vehicle maintenance is three times lower and repairs are 22% lower than gasoline vehicle costs at three years.
- Kia ranks best for lowest service costs among non-premium brands at three years.
- Acura has the lowest service costs among premium brands for the same period.
- Nissan Motor Corp. topped the brand’s charts with six segment-leading vehicles in the new We Predict Deepview True Cost study of service cost data after three years of service.
For electric vehicles, We Predict ranked the Honda Clarity, Chevrolet Bolt, and Volkswagen e-Golf in the Top 3, respectively, for the lowest 36-month costs. The study confirms the widely held expectation that electric vehicles should logically cost less to maintain, because they are mechanically simpler than vehicles with internal combustion engines and have fewer moving parts.
A previous study by We Predict, released in May 2021 and based exclusively on the first 90 days of ownership, caused a stir in the auto industry, Forbes said because it showed higher costs for electric vehicles compared to internal combustion vehicles. Davies says this holds true for the first 90 days, but over 36 months EVs are on average lower.
In addition, he said the 36-month costs are “very indicative” of the costs consumers would likely face beyond the 36-month point. In other words, the report is based on enough data for the results to reflect real-world experience and closely match the expectations of customers and manufacturers.
Just because electric cars are cheaper to maintain doesn’t necessarily mean they’re competitive with conventional cars, at least not yet. But add higher resale value, lower fuel costs, and intangible assets like not polluting the atmosphere (and your kids) with carbon dioxide and fine particles and the business case for electric vehicles becomes bigger. and louder.
We have been saying for years that electric cars cost less to maintain and now we have proof of it. One more reason why you should consider switching to an electric car as soon as possible. It would be nice today!
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