This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Ways Consumers Overestimate Their Electric Cars

NEW YORK (TheStreet) -- When you talk to an electric car owner, chances are you will hear how much better an EV (electric vehicle) is compared to a regular gasoline/diesel car, and why you absolutely must buy one. I have identified three reasons EV enthusiasts often overstate their case.

Reason Number One: Poor Objects of Comparison

Most EV buyers compare their new purchase with their previous car, which was on average three to 10 years old. This makes for an unfair comparison. It is not apples-to-apples.

Speaking of apples, it reminds me of how people who get their first smartphone in the form of an iPhone are certain that it's vastly superior to the best Android smartphones on the market. They are comparing their iPhone with whatever old junk they used before 2008 or 2010.

In that comparison, of course the iPhone is vastly better. However, it says nothing of how it compares with today's best Android smartphones. They just didn't compare it against a Nexus 5, Samsung Galaxy S5 or something equivalent.

It is absolutely true that even experienced automotive journalists who compare all sorts of cars all day long mostly agree that EVs are smoother to drive in city traffic. An electric motor has superior torque and linearity and there is no downshifting or other jerky behavior.

However, in comparison to what? Clearly the EV will be vastly superior to almost any three- to 10-year-old car, even a premium one. But to the best $30,000-$60,000 cars of today as opposed to three to 10 years ago?

A lot has happened to car performance over the last three to 10 years. The newest cars have far better transmissions, shifting far more smoothly. Many mid-range cars now have up to eight or nine gears, and the best CVTs (continuously variable transmissions) are butter-smooth, too.

Furthermore, the gasoline/diesel engines themselves are smoother than they used to be, and are better isolated from noise. On top of that, all new cars have better NVH (noise, vibration and harshness) than they used to have, even a couple of years ago.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $126.01 -2.10%
FB $77.38 -1.80%
GOOG $531.72 -1.70%
TSLA $230.45 -0.03%
YHOO $41.24 -1.90%

Markets

DOW 17,932.54 -137.86 -0.76%
S&P 500 2,093.05 -21.44 -1.01%
NASDAQ 4,943.1480 -73.7810 -1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs