Find out why you shouldn’t choose your next car based on purchase price and how you can save money with a battery electric vehicle (BEV) on subscription from Clyde compared to leasing or buying a vehicle with internal combustion engine (ICE).
What is the Total Cost of Ownership (TCO) of a car?
When buying a car, the focus is usually on the purchase price – it’s clear as day and unambiguous. But what about the rest of the costs that are incurred in relation to the car? Insurance, maintenance, repairs, fuel – these costs are often massively underestimated and can easily skyrocket (2). All these expenses fall under the overall cost consideration – i.e. the total cost of a car.
What factors need to be considered for a total cost analysis?
According to a study by SwissEnergy (3), electric cars in the mid-range, luxury and SUV classes are cheaper than their combustion-engine counterparts over the period of ownership. This is despite the often higher purchase price – so what’s the reason for this?
BEVs and ICEs in direct comparison:
Service costs:
Electric cars generally have lower maintenance costs than cars with an internal combustion engine and plug-in hybrid cars.
Tyre costs:
Contrary to popular belief, the cost of tires for electric cars is not higher than for combustion engines.
Depreciation:
This is where the biggest cost driver lies. It refers to the loss of purchase price due to ageing, wear and tear and loss of market value. The depreciation of electric cars is usually lower than that of combustion-engine cars, as they are less susceptible to wear and tear.
Fuel costs:
Electricity is usually cheaper than petrol or diesel in terms of mileage, which means that fuel costs are lower for electric cars.
Electric cars are therefore the more economical choice from a total cost perspective and offer additional cost benefits when acquired via Clyde’s subscription offer.
Why the Clyde electric car subscription is cheaper than leasing or buying a car with combustion engine
Our all-inclusive subscription price not only includes insurance, service, tires, taxes, registration and vignette, but also multi-driver and even electricity is included. But that’s not all: We are the only provider that includes charging at the same time. These are cost blocks that are not included as standard with purchase, lease and even other subscription offers.
With the “Clyde Energy Benefit“, you can now charge for free not only at public charging stations throughout Europe, but also at home or at work. The used electricity will be refunded for your Clyde car. So from a TCO perspective, it’s super attractive and the reason why popular electric cars at Clyde are on average over 15% cheaper than comparable internal combustion cars in traditional sales formats.
You can find detailed information on our total cost analysis here.
In short, with the Clyde subscription, everything is included, everything is transparent, and there are no surprises. We keep things real. And more. #Spoileralert. More on this in the next section.
Electrified already? Click here for the electric car subscription
Low total costs and the option to earn extra money?
Yes! High electricity bills for electric cars are a thing of the past, because with Clyde you’ll not only save in terms the overall cost comparison, but you can also get the chance to earn money with your own electricity from your photovoltaic system. We will reimburse you CHF0.30/kWh for electricity charged at home – significantly more than the rate offered by local electricity suppliers.
What have we learned?
Take-away 1 – whether buying a car, leasing a car or taking out an electric car subscription with Clyde: Think carefully about which car offer you choose and get an overview of the total costs of a car in advance. After all, something that seems lucrative at first glance will often look different on closer inspection.
Take-away 2 – the figures show that electric cars are ahead of internal-combustion cars in terms of total cost of ownership.
Take-away 3 – with the lucrative, flexible and transparent electric car subscription, we can provide maximum freedom for customers compared to a car purchase or leasing offer, which will even pay out twice if customers have a PV system.
Clyde Energy Benefit
Thanks to our unique Clyde Energy Benefit, electricity is included both at public charging stations and at home or at work: If you charge your electric car at one of the many public charging stations in our partner charging network in Switzerland and throughout Europe, electricity is included in your monthly subscription. Private charging is credited in the form of vouchers that you can put towards your next monthly payment.
