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The cheapest electric car in Australia at the moment is the MG ZS EV but the biggest challenge you may face is finding one for sale. Several dealers Canstar approached currently have little or no stock of the popular SUV.
There is a new updated model coming soon but that faces competition from a new entry that could knock the MG off the ‘cheapest’ pedestal.
MG, the former British car maker now part of China’s Shanghai Automotive Industry Corporation (SAIC), released the ZS EV model in Australia in 2021. It soon became the nation’s second-most popular electric car, behind the Tesla Model 3, selling more than 1,500 vehicles.
A spokesperson for MG Motor Australia told Canstar there were now only about 30 left in stock at the time of writing.
You may still be able to track down a current 2021 model of the MG ZS EV, priced by some dealers at about $44,990 driveaway. You may even be able to get one cheaper if you can find a demonstration model for sale.
That model has a range of 263km on a single charge, which isn’t much compared to many of the other best sellers.
MG Motor Australia CEO Peter Ciao said the new model comes in two variants with a greater range of up to 320km. It should be available from July for $46,990 drive-away, so more expensive than the existing model.
“It offers more technology at a price that will allow everyday Australians to switch to electric motoring without compromise,” said Mr Ciao.
Keep an eye out though for new entries set to enter the market soon at the lower end of the price scale. China’s BYD is taking Australian orders for its Atto 3 electric car with a driveaway price to match the older MG model of $44,990 with an estimated delivery date also in July.
So unless there’s any last-minute price battle between MG and BYD, that would make the Atto 3 then Australia’s cheapest electric car.
If it’s a Tesla you’re after, the cheapest available is the Model 3 with prices starting from $62,625 (including order and delivery fees but excluding other costs such as stamp duty) with a range of 491km. There is a waiting list of between five to seven months.
Some of the cheapest electric vehicles*
- MG ZS EV from $44,990 ($46,990 from July for the 2022 model)
- BYD Atto 3 from $44,900 (taking orders)
- Nissan Leaf from $54,187
- Hyundai IONIQ Electric from $54,423
- Hyundai Kona Electric from $58,360
- MINI Electric from $61,479
- Tesla Model 3 from $62,625
(* Prices as listed where available from each manufacturer or dealer’s website, subject to change and conditions may apply, especially depending on your location.)
As with any new vehicle purchase, prices may vary and you will have to factor what other fees and charges may apply depending on which state or territory you live in.
Read more: Top 10 selling electric cars in Australia
Calculating cheapest: upfront price vs cheaper running costs on electric cars
Electric cars are still relatively expensive when compared to similar combustion engine modes, but prices are expected to fall as they become more popular.
If you’re interested in an electric car then Alex Kelly, Policy Manager at the Electric Vehicle Council in Australia, told Canstar you should look beyond just the forecourt or initial purchase price of a new vehicle.
“One of the main benefits of an electric vehicle is the savings on fuel, servicing and maintenance,” she said.
If your car is fully electric – not a hybrid mix of battery power and a combustion engine – then that means no more regular trips to fill up at the bowser.
Charging can be done at home and if you have solar power that could ease the pressure on your power bill as charging could come courtesy of the Sun.
The council estimates the savings on fuel to be about $1,500 a year.
Servicing and maintenance are also typically cheaper for an electric car. That’s because there are fewer mechanical parts in an electric motor compared to a combustion engine.
“An electric vehicle is basically a computer on wheels,” said Ms Kelly.
Some regular components will still need attention but she said that was mainly the window wipers and tyres. Lights and brakes too.
Again, the wear on brakes can be reduced by the clever way most electric vehicles slow down using regenerative braking.
Press down on the accelerator pedal and that makes the electric motor make the car go. Ease back on the pedal and that makes the motor slow the car. The clever bit is that some of the kinetic energy from the car’s motion slowing down is fed back to charge the battery.
All that means there’s less usage of the traditional brakes and brake pads.
Ms Kelly said the estimate on savings in servicing and maintenance was about $300 to $500 a year. She also pointed out that electric vehicles usually don’t need servicing as regularly as combustion engine vehicles.
Read more: How much does an electric car actually cost?
So electric cars may not be the cheapest to buy, but they can be cheaper to run if you factor out the initial purchase price.
There are some government incentives available that could help reduce the cost of buying an electric car, but these vary across Australia so you should check with your state or territory administration to see what may be available.
Will I have to replace an electric car’s battery?
Most electric vehicles come with some form of warranty on the battery. Check with the dealer and manufacturer to see what applies for any model you are considering. For example, the Tesla-3 has a battery warranty of up to eight years which is similar to other manufacturers.
Ms Kelly told Canstar the common perception among people was that they may have to replace an electric car’s battery every five years or so, and that could be expensive and wipe out those other savings.
But she said that’s not the case with the improvements that have been made over the years in battery technology and manufacturing.
“The expectation now is that the battery will outlast the car,” said Ms Kelly.
Once a car battery reaches the end of its life to power the car, that doesn’t necessarily mean the end of the battery. There are plenty of ways an old electric car battery can be repurposed for other uses.
For example, if you have solar panels installed at home, Ms Kelly said you may be able to reuse your car’s battery to store some of that solar charge to help provide power to your home.
Can I buy a second-hand electric car?
There are some used electric cars you can track down that can be cheaper than a new model would cost. As interest in electric cars grows you should see more second-hand vehicles become available.
Ms Kelly said that was one reason why the council was encouraging fleet operators, such as governments and big corporations, to invest in electric cars. They tend to run vehicles for about three to five years before replacing them, and that would then feed the second-hand market.
Some car rental companies, such as Hertz and EuropCar, have started to use electric cars.It could still be a few years before ex-rental electric models become available on the second-hand market, but if it’s a cheap deal on an electric car you’re looking for then it’s something to start saving for now.
If you want to find out more about the cost of running an electric vehicle, there is a useful calculator available on the Electric Vehicle Council’s website.
This content was reviewed by Sub Editor Tom Letts as part of our fact-checking process.
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