Gas Prices Will Only Go Up More: Is an EV the Solution?
Is an electric vehicle the answer to sky-high gas prices? The answer is, “It depends.” There are good reasons to switch now, but you may not be able to go out and buy one tomorrow. It’s 2022; there are plenty of obstacles that might mean you’ll have to wait months.
Those reasons to buy an EV or hybrid became crystal clear
The good reasons to switch to an EV are many. But the number one reason today is they get great gas mileage. That’s because they don’t use gas at all. And charging stations for EVs are expanding by the day. Or, you can step up for a home charger and rarely frequent a charging station at all.
There are also rebates and tax credits. And they’re cheaper and easier to maintain. But the reason all of the manufacturers are switching their product portfolios to electric is they’re better for Mother Earth. For those reasons and more, you’re reading to step up to EVs.
Those reasons got even better in the last couple of months. COVID outbreaks caused assembly plants to close, the ongoing microchip shortages, supply-chain holdups, and now the war in Ukraine. Each one of these affected vehicle supplies and the price for both gas along with new and used cars.
Do we still import crude oil from Russia?
Now that the US won’t be using Russian oil, the gasoline overlords have their cue to ratchet up gas prices. That reason is so juicy for refineries and crude oil prices we may see months of increases-even if the war ends this week. An EV is surely the answer. But not so fast.
Have you been to a car dealership lately? They’re like a ghost town. Yes, there are plenty of Chevy Silverados and Ford Excursions on the lots. But where are the hatchbacks? Oh, that’s right, most car manufacturers stopped making cars a few years back.
But where are the smaller SUVs, hybrids of all flavors, and electric vehicles? Most dealers ran out of inventories for those months ago. According to Cox Automotive, inventories are down 70 percent from where they were in 2020.
Is ordering an EV the better way?
All of the reasons mentioned above mean about the only way to buy an EV or hybrid is by ordering it. Then it will take roughly three to four months before you take delivery. If you’re lucky.
Some buyers have to wait a year or more before they’ll get the vehicle they ordered. Ford has stopped taking orders for the 2022 Mustang Mach-E. You may have to wait until the end of 2022 to order a 2023 Mach-E that you might not get until 2024.
You could go on a waiting list, but you’ll probably pay more than MSRP once you get the call. And it could still take a while. Demand is so high right now for EVs and hybrids, and that too is likely to go up. You’ve got nowhere to go.
“People are accepting availability”
“People will buy what they can get,” Jay Joseph, American Honda Motor Co. vice president of marketing told CNBC. “There isn’t inventory for people to have a choice. We’re seeing people accepting availability.”
So right now, if you want a new vehicle, no matter what it is, you should wait. Though prices are sky-high, it’s still not a seller’s market. That’s because dealers have no inventory. So everything becomes more valuable because it is now rare. Supply and demand, baby.
If Americans are anything, it is adaptable. So maybe we’ll drive less, and carpool more. Or work from home more often, if you haven’t been already. And maybe a staycation is the answer for your summer this year. Things could be a lot worse; you could be living in, or fleeing your home and family from Ukraine.