A money-saving idea for the crowd that can’t afford an EV

Buying an electric vehicle is the obvious solution to the problem of high gas prices. But what do we do about the problem of high prices for electric vehicles?

You can learn all about electric vehicles in response to the high cost of gas in the latest episode of our Stress Test for Generation Y and Millennials personal finance podcast. We don’t shy away from the fact that electric vehicles can cost much more than internal combustion engine vehicles. But one of our guests is a 24-year-old who owns an electric vehicle and is saving money.

Government subsidies for EV buyers can help lower the cost of buying these cars and SUVs, and high gas prices help with the economics of owning them. But what if an EV is still out of your reach, even as high gas prices crush you?

Here’s some good advice from one of the guests on this podcast episode, Robert Karwel, an auto industry expert at JD Power: Buy a more fuel-efficient car instead of an SUV.

JD Power says the median price for a new vehicle was about $44,000 last month. Fuel-efficient cars can be had for $25,000 to $27,000 or so, plus taxes and miscellaneous dealer costs. Electric vehicles are in high demand right now, making it difficult for buyers to agree on price or financing rates. Cars may offer more room to negotiate the price down, and you may also find more reasonable financing rates.

The auto industry’s answer to affordability is to allow customers to finance loans for seven years or more. For a tutorial on the financial risks of long-term auto loans, check out a recent article by my colleague Erica Alini that had the following headline: She had a $29,000 loan for a $16,000 car. How auto financing is driving Canadians into debt.


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Rob’s Personal Finance Reading List

down with start houses

A critical look at the idea of ​​buying an initial home and then moving on to something bigger. The author is Benjamin Le Fort, author of a book called The Financial Freedom Equation. It is worth reading as the real estate market slows down.

best metal cards

A new trend in premium rewards: credit cards are made of metal instead of plastic. Lots of power to earn points, but annual fees of up to $700 per year.

buffet in bitcoin

Revered billionaire investor Warren Buffett says what would happen if he were offered all the bitcoins in the world for $25. Now, a balanced look at what is being described as Mr. Buffet’s crypto blind spot.

‘When you have children, your house becomes a big bathroom’

Tips on how to clean stains your kids leave on expensive items like rugs and sofas.


Questions and answers

Q: I have read tips for selling bonds and moving that money to GIC to take advantage of rising interest rates and deal with the bad bond market. As someone who won’t retire for 20 years and keeps 25 percent of his RRSP portfolio in bond ETFs, is the advice still valid?

AN: What you’re doing sounds sensible. Keep it up. The GIC alternative to bonds offers a big advantage right now: Secured Investment Certificates don’t lose value as interest rates rise, the way bonds and bond ETFs do. When interest rates fall again after peaking, bonds and bond ETFs will rise in price. Plus: By adding money bond ETFs now, you can lock in today’s highest yields

Do you have any question for me? Send it my way. Sorry I can’t answer each one personally. Questions and answers are edited for length and clarity.


Today’s financial tool

The best free retirement calculators, compiled by the My Own Advisor blog.


The Money Free Zone

I just came across this nugget: ride your ponyby 1960s soul singer Betty Harris.


See this

Canada Deposit Insurance Corp. explains how it now offers separate coverage for up to $100,000 of deposits in registered education savings plans and registered disability savings plans.


tweet of the week

The headline in a recent Globe and Mail editorial about raising the age to start Old Age Insurance: Sorry, Grandma, we’re cutting your benefits. A retired financial planner and business banker answers: “Yes (says the grandfather).”


In Case You Missed These Globe and Mail Personal Finance Related Stories
  • Canadians are racking up credit card debt again
  • Some new owners are losing money. With Rates Rising, Tenants Could See Rent Increases
  • Politicians are selling us a myth about housing: that more supply will be our salvation

More Rob Carrick coverage and money

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