Fuel Prices are RISING everyday. Buy an EV instead? — Transcript

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1. 0:00Ready?
2. 0:01So, you know, these two cars look
3. 0:04exactly the same.
4. 0:07>> [music]
5. 0:10>> But, this car is a little bit special.
6. 0:16So, people ask me all the time, "The EV
7. 0:19is great, but it's a little more
8. 0:20expensive. Maintenance seems lower. This
9. 0:23one is cheaper, but petrol prices are
10. 0:25through the roof. So, what makes
11. 0:27financial sense? Which one actually is
12. 0:30more affordable, and which one is easier
13. 0:33to maintain?" By the end of this video,
14. 0:35I'll answer all your questions on
15. 0:37ownership on an ICE [music] or an EV.
16. 0:40And obviously, I'm going to give you an
17. 0:42Excel sheet, so you can plug in all your
18. 0:44numbers, and you can answer for
19. 0:46yourself.
20. 0:57Okay.
21. 0:59So, let's get started. So, now let's
22. 1:01assume you're going to own this car for
23. 1:03the next 5 years. You drive roughly 30
24. 1:05km a day, so about 900 km a month.
25. 1:09And the loan is at 9%, and the down
26. 1:12payment is 20%. Now, I have taken a
27. 1:16particular model, so this can be as real
28. 1:19as possible, but you should definitely
29. 1:21change the model based on whatever car
30. 1:23you're buying. So, here, there's a
31. 1:25petrol version of the car that comes to
32. 1:26about 6.31 lakhs.
33. 1:30All right. So, you're going to pay 6.3
34. 1:32lakhs to buy the car, right?
35. 1:35Of course not.
36. 1:36As you know, this is called ex-showroom
37. 1:39price, which means exclusive of other
38. 1:42costs. So, let's see what's the on-road
39. 1:44cost for this car. First, we have to pay
40. 1:47road tax. So, over here, I'm going to
41. 1:49choose Delhi as an example.
42. 1:52The ex-showroom price is between 6 to
43. 1:5310, so the tax is right here, 7%, and
44. 1:57I'm going to add that.
45. 1:59Okay, so that's about 44,190
46. 2:02rupees and we'll add it and then we can
47. 2:05drive the car home, right?
48. 2:07Of course not. Insurance company will
49. 2:09take care.
50. 2:10Let's add the insurance cost. I'm going
51. 2:12to choose the zero depth version of the
52. 2:13insurance and I see that it's about
53. 2:1615,000 rupees for 1 year, so let's add
54. 2:18that. Also, some other miscellaneous
55. 2:20charges that are added. So, we have
56. 2:224,000 is MCD charge, there's a
57. 2:24hypothecation charge, there are number
58. 2:28plate changes etc. So, mota mota, let's
59. 2:30take 10,000 rupees and add it over here.
60. 2:33And now our total on-road price
61. 2:37Originally, we had seen 6.31. Now, after
62. 2:40all these actual costs, the on-road
63. 2:43price is [music] 7 lakh rupees. Let's
64. 2:46move forward. Um now, after you buy the
65. 2:49car,
66. 2:50an amazing expense happens [music] and
67. 2:52that expense
68. 2:54is maintenance and ownership cost. Also
69. 2:58known as running cost. And the most
70. 3:01obvious cost over here is fuel. So, the
71. 3:04cost of petrol is around 100 rupees a
72. 3:06liter and I will add that. Let's see the
73. 3:09mileage of the car is 19 is what they
74. 3:12claim.
75. 3:13We should not believe these claim
76. 3:15numbers. Let me reduce it. One, because
77. 3:17it's claimed and two, I know you're not
78. 3:19a good driver.
79. 3:20So, let me assume it's 17 kmpl and uh
80. 3:25let's add that up assuming 300 km a
81. 3:29month.
82. 3:30And then we have maintenance.
83. 3:32This is something most of us
84. 3:36miss.
85. 3:37All of us think, "Yeah, I bought this
86. 3:38car. Maintain to my car lunga." But, you
87. 3:41know, uh care is expensive time-wise and
88. 3:45money-wise as well. And since 01 cares
89. 3:48about the details of the details of the
90. 3:49details and this is why you're watching
91. 3:51the episode, We should add these costs.
92. 3:53So, for maintenance over here, I have
93. 3:56the service costs. Please change it for
94. 3:58your car. Now, we took the cost of only
95. 4:011 year of insurance.
96. 4:06You own the car for 5 years, so
97. 4:08we will add all the 4 years car cost of
98. 4:12the insurance as well. So, I'll add it
99. 4:14here. Now, assuming you're driving this
100. 4:16car 900 km a month, in 5 years you'll
101. 4:20definitely change the tires. So, let me
102. 4:22add that cost as well. The replacement
103. 4:25cost is around 18,000 rupees.
104. 4:27Now, I want to add all of this up and
105. 4:31see the actual cost of ownership.
106. 4:33Remember,
107. 4:34what was the ex-showroom price of this
108. 4:36car? 6.3 lakhs was the cost. Now, after
109. 4:39adding all of this, the actual cost is
110. 4:42an extra 4.2 lakh rupees on top of the
111. 4:44on-road price, which means the total
112. 4:47cost of driving the vehicle is 11. 1
113. 4:52lakhs.
114. 4:54People look at the ex-showroom price and
115. 4:56then they say, "Oh, this is the cost."
116. 4:58But, it's not. We added all this up and
117. 5:00it's almost double. But, you know what?
118. 5:02There's one [music] cost that you're
119. 5:04completely missing, which I'll tell you
120. 5:06in just a bit. But, before that,
121. 5:09let's look at the cost of the EV car.
122. 5:15So, now let's do
123. 5:17the EV car.
124. 5:18And we can see that the ex-showroom
125. 5:20price is 7.99 lakhs. It is more
126. 5:23expensive than the petrol, but that's
127. 5:25fine. If you look at both of these cars,
128. 5:28>> [music]
129. 5:28>> the EV and the ICE, they're actually
130. 5:31pretty identical, which is why we took
131. 5:32this as an [music] example. The only
132. 5:34difference is one is electric and the
133. 5:37other is not.
134. 5:39Next, I want you to look at this. It
135. 5:40says tax over here and the tax for our
136. 5:43EV
137. 5:44is zero. Now, this is assumed that you
138. 5:47make the purchase in Delhi. So, if you
139. 5:49look at this, every state has a
140. 5:51different tax structure and the
141. 5:53incentives keep changing. Kabhi a jata
142. 5:55subsidy, kabhi it removes. So, please,
143. 5:57[music] in the Excel, based on what your
144. 5:59state is and what the rule is, you can
145. 6:02change whether the rebate exists
146. 6:04or not. Then we have my favorite,
147. 6:07insurance. Now, see, the car was 20-30%
148. 6:10more expensive. So, the insurance,
149. 6:13naturally, should also go up by 20-30%,
150. 6:16right?
151. 6:18Right?
152. 6:19Lekin ye such nahi hai. The EV example
153. 6:22that we've taken, the cost actually
154. 6:24doubles.
155. 6:26I want to know why. In fact, before this
156. 6:29video, I myself actually did not know
157. 6:31this. So, so here's what we found. The
158. 6:33first thing is that the insurance is
159. 6:35actually covering the battery in an
160. 6:37accidental claim.
161. 6:39So, ideally, you should insure the
162. 6:41battery as well for non-accidental
163. 6:44incidences as well. And because of that,
164. 6:47the cost [music]
165. 6:47goes up. So, in this case, it's 29,405.
166. 6:51It's almost double. We'll add this to
167. 6:54the sheet and then we'll move on to
168. 6:57range.
169. 6:58Mwah, I love this.
170. 7:00When, you know, EV vehicles were
171. 7:01launched initially, [music]
172. 7:03the range was not that great. So, people
173. 7:05would have this range anxiety.
174. 7:09When I used to drive my Wagon R,
175. 7:11actually, I knew the car so well, I knew
176. 7:14exactly kitne kilometer I have to drive
177. 7:16to get to my petrol station. But in EV,
178. 7:19it's not petrol, right? It's range. And
179. 7:21if the range is too less, then you get
180. 7:23this range anxiety because you need
181. 7:26[music] two things.
182. 7:27One,
183. 7:28either you have a charging station very
184. 7:30often on your route, but that's not the
185. 7:32case. But the cool thing is that a lot
186. 7:35of these apps, including a manufacturer
187. 7:36apps, give you access to where these
188. 7:39charging stations are, so you can plan
189. 7:41your route properly,
190. 7:42>> [music]
191. 7:42>> which I guess is a good thing, but the
192. 7:44overall penetration
193. 7:46still sucks, huh? Like, overall, look at
194. 7:48these stats.
195. 7:51It's not even close to what we get in
196. 7:53ICE right now. The other is sometimes
197. 7:55the range itself isn't long enough, so
198. 7:58you have to keep charging it again and
199. 7:59again, and for some people, that's not
200. 8:01ideal. But, I found something a little
201. 8:04crazy
202. 8:05in the brochure. I want to really show
203. 8:08you this, okay? Take a look at this.
204. 8:09Over here, it says
205. 8:11certified full range, 223
206. 8:15km on a single charge.
207. 8:17Amazing, right? But, if you look right
208. 8:19below it, you'll see it says
209. 8:22estimated real-world driving range,
210. 8:25168.
211. 8:27That's like what, 60 km difference. So,
212. 8:30when you see the advertising, the
213. 8:32advertising might say the higher number,
214. 8:35so you might want to check with whatever
215. 8:37car you're going with, does this also
216. 8:39exist for your car? Like, what's the
217. 8:41real-world range versus the certified
218. 8:44range? Cuz [music] this is quite a big
219. 8:45gap in my opinion. Then, we have the
220. 8:48electricity cost. In Delhi, I'm going to
221. 8:50assume the average of 7 rupees a unit.
222. 8:53Please change it based on how much you
223. 8:55will be charged in your state. Then, we
224. 8:57have maintenance. Now, in an EV vehicle,
225. 9:00the maintenance is actually really good
226. 9:03because it is 20 to 30% cheaper, and
227. 9:06logically, it makes sense because there
228. 9:07are less moving parts. Less moving part
229. 9:10means less wear and tear. Comparison
230. 9:12with ICE, electric wins hands down over
231. 9:14here. So, we'll assume 4,000 rupees for
232. 9:16the EV vehicle for maintenance a year.
233. 9:19I'm going to add this. Cool. And then,
234. 9:21we have tires. Tires, no change. Just
235. 9:23like the ICE vehicle, we should replace
236. 9:26it every 5 years at least. Also notice
237. 9:29that uh the EV tires I've added here are
238. 9:31slightly more expensive than the ICE
239. 9:33vehicle because of the battery, the car
240. 9:35is heavier, so you might want slightly
241. 9:37better tires here. So, I'll put 20,000
242. 9:39over here
243. 9:41for the EV tires.
244. 9:43Now, for the grand finale,
245. 9:46we have ICE vehicle key costs here, and
246. 9:49we have the EV vehicle costs here, but
247. 9:53something's missing. Like I told you,
248. 9:55there are two things over here that we
249. 9:57did not include. And if you guessed it,
250. 10:00pause the video right now. Put it in the
251. 10:02comments if you know what I'm going to
252. 10:03say, and it's
253. 10:05interest.
254. 10:07Interest is a cost that you are paying
255. 10:08to the bank because you've taken a
256. 10:10freaking loan, and none of us add the
257. 10:13interest as a cost. We just look at the
258. 10:15EMI and say,
259. 10:16Hogya. But, let's do this. Let's add the
260. 10:19interest for both of these vehicles. You
261. 10:21would imagine that they're both the
262. 10:23same, but no, we paid more for the EV
263. 10:26vehicle, so the interest will also be
264. 10:29higher. [music] Let's see what it is.
265. 10:321.37 lakhs
266. 10:34for the ICE vehicle, and 1.65 lakhs
267. 10:37almost for the EV vehicle.
268. 10:41And there's one more thing over here,
269. 10:43but before I tell you this,
270. 10:44can you do one thing for me? If you
271. 10:46notice, every time 01 makes a video,
272. 10:49we give you an Excel sheet. We try to
273. 10:51make your personal finance decisions
274. 10:53better. And we're noticing more and more
275. 10:56people are watching this on television
276. 10:57with their families. Our entire team is
277. 11:00optimized for only one thing, and that's
278. 11:02impact stories.
279. 11:04Are we really making a difference in
280. 11:05your in your life? Because when I meet
281. 11:07you in person, you tell me these crazy
282. 11:08stories which I never get to hear when
283. 11:12we're talking like this to you on
284. 11:13YouTube. So, if you have a story that
285. 11:15[music] 01 has helped you or something,
286. 11:18maybe from this you learned something,
287. 11:20put that story in the comments. The
288. 11:21entire team, there are a lot of us,
289. 11:24we'll all read it. Now, back to the
290. 11:26comparison, and then we have resale
291. 11:30value. So, I'm going to add this and
292. 11:32let's understand the resale value
293. 11:34between the EV car and our lovely ICE
294. 11:38vehicle. Okay.
295. 11:41So, we'll assume that you want to sell
296. 11:43the car after 5 years, which means your
297. 11:46overall cost of ownership actually
298. 11:48reduces because some money comes back.
299. 11:51Now, the difference is this, that the EV
300. 11:53car's value is derived from
301. 11:55its battery. The battery's value is a
302. 11:57little tough to figure out and we have
303. 12:00some three ways where you can actually
304. 12:02measure the health of a battery, but
305. 12:05there no standards yet.
306. 12:07For most EV manufacturers, if you look
307. 12:09at this, the battery pack [music]
308. 12:11is about 8 years or 1.6 lakh kilometers,
309. 12:15whichever is earlier. Now, let's suppose
310. 12:17you own the car for 5 or 6 years and you
311. 12:19plan to resale it.
312. 12:20The guy who's buying it literally is
313. 12:23owning it for the next three or two
314. 12:26years. So, the life is defined as
315. 12:28limited. And that's why the resale value
316. 12:31actually reduces because if he has to
317. 12:33replace the battery,
318. 12:34>> [music]
319. 12:34>> it becomes an expensive affair.
320. 12:36So, basically, when you sell the ICE
321. 12:39vehicle after 5 years, you'll get about
322. 12:41roughly, let's say, 50% of its value.
323. 12:44And for the EV car, you'll get about 30
324. 12:47or 40%.
325. 12:48>> [music]
326. 12:48>> In many cases, this also may not be true
327. 12:51if the battery has a major fault in it
328. 12:53because the car is the battery. But,
329. 12:56I'll still assume 30 to 40% as resale.
330. 12:59And if I add all of this up, the clear
331. 13:02winner is electric vehicle, the EV. Can
332. 13:06we clap?
333. 13:08The EV wins by 40,000 rupees, but
334. 13:12I actually don't agree. I don't think
335. 13:14the EV actually won. Let me show you a
336. 13:17little bit of magic.
337. 13:18On this Excel sheet, I'm going to change
338. 13:20a bunch of things. Let's say I change
339. 13:22the usage from the current 900 to 1,500
340. 13:27kilometers a month.
341. 13:29The ice car will never be able to beat
342. 13:32the EV and the EV will win even more.
343. 13:35But if I remove the subsidy that you got
344. 13:39for the electric vehicle, that discount,
345. 13:41that rebate, then the ice vehicle
346. 13:44actually wins pretty well. And then I
347. 13:46have a friend who drove the EV and his
348. 13:48ice and he absolutely loved the EV
349. 13:51because the talk, that initial thrust
350. 13:53was amazing and he absolutely loved the
351. 13:55car. And that's actually a good reason
352. 13:58to buy the EV. Another petrol head had a
353. 14:01bunch of other reasons why he thought
354. 14:02petrol was good because the engine
355. 14:04growled and he just felt he by this is a
356. 14:07good car.
357. 14:09My point is we can do all these excel
358. 14:11sheets and now you actually know the
359. 14:13real costs, but you should buy the car
360. 14:16which you actually enjoyed. And since
361. 14:18this is the end of the video, I know
362. 14:20that you'll listen fully and hopefully
363. 14:22you'll be smart about it.
364. 14:24There are actually only
365. 14:26three or four things you need to care
366. 14:27about
367. 14:28on the financial side.
368. 14:30My only request is
369. 14:32don't overextend yourself and make this
370. 14:35car a burden because if it becomes a
371. 14:36burden, all these memories not
372. 14:39negate. Life bahut lambi hai. I promise
373. 14:42you everything you ever wanted
374. 14:44you'll get all of it.
375. 14:46But you won't get it now.
376. 14:49You'll get it over a period of time.
377. 14:52So
378. 14:53financially if you're sorted
379. 14:56go to the showroom
380. 14:58AND FREAKING BUY THAT CAR.
381. 15:01>> [laughter]