We recently published a comprehensive car affordability review of the 2022 Hyundai Kona Electric Elite Auto. The review covered every aspect of buying, owning and maintaining the Hyundai EV.
The review focused on our prospective buyer Casey and her key estimates:
- 5 years ownership
- 12,500 annual kilometres
- 5 year Car Loan at 4.08%
Based on these and other estimates, Casey's average estimated Total Cost of Ownership came in at $1,479.37 per month.
Zero Emissions Vehicle (ZEV) Subsidy
Of particular interest in our car affordability review was the inclusion of the Victorian Government’s Zero Emissions Vehicle (ZEV) Subsidy.
The $3,000 subsidy is available to eligible new Zero Emission Vehicles purchased on or after 2 May 2021. To qualify, you must also be an "eligible person".
If you and your vehicle meet the criteria, the subsidy reduces the 'drive-away' price of an eligible vehicle by $3,000.
To learn more about the program and the criteria, see the Zero Emissions Vehicle (ZEV) Subsidy website.
It's highly unlikely anyone would refuse a $3,000 subsidy. It’s incredibly generous. But the program offers a limited number of subsidies over a limited period of time.
So we thought we'd examine how the subsidy impacts the affordability of the Hyundai for Casey. Especially when she plans to own the Hyundai for 5 years.
What's the ZEV Subsidy really worth?
To work this out, we jumped onto CarCalc to run the numbers.
For Casey’s Hyundai, we reset the ZEV subsidy from $3,000 to $0. Not something one would do in normal circumstances.
Given no other changes to Casey’s settings, the differences are interesting. Let’s take a look at what changed.
‘Drive-Away’ Price
The ‘Drive-Away’ Price increased from $62,974.90 to $65,974.90. A $3,000 increase. No surprises there.
Total Cost of Ownership (TCO)
The average monthly Total Cost of Ownership (TCO) increased from $1,597.16 to $1,652.52 per month. An increase of $55.36 per month. Why?
The increased ‘drive-away’ price of the Hyundai increased the value of Casey’s Car Loan. The flow on effect was an increase in the cost of her loan repayments.
Does the Hyundai remain affordable for Casey without the ZEV subsidy?
Unfortunately not.
Without the subsidy, the revised average estimated TCO of $1,652.52 leaves the Hyundai $52.52 per month above Casey's $1,600 extended budget.
There is good news though - for Casey and all prospective Victorian ZEV buyers.
At the time of writing, there are more than 3,000 subsidies remaining in the current release.
The ZEV Subsidy offers great savings
If you’re an eligible person and you're considering an eligble ZEV, the Victorian ZEV Subsidy offers some great savings.
If you're considering a Zero Emissions Vehicle and you'd like to assess its affordability based on your specific usage, register today for early access to CarCalc, the most comprehensive Total Cost of Ownership tool for cars, ever created (registering is free).
CarCalc
Want to know how much it costs to own and run a 2022 Hyundai Kona Electric Elite Auto? Thanks to CarCalc, we can tell you.
CarCalc have developed the world's most comprehensive Total Cost of Ownership (TCO) calculation engine for cars. Every calculation referenced in this article was generated using Carcalc.
CarCalc helps you to:
1. Understand all your options and make an informed decision on which car to buy. Take control.
2. Know what car(s) you can afford before you buy. Be prepared.
3. Make the right decision regardless of your circumstances. Save time. Save money.
CarCalc allows you to assess the affordability of any car, based on how you use it. It includes all available finance options and ownership costs, for EVs, hybrids and internal combustion engine vehicles.
If you'd like to know the best option for your next car purchase, join our upcoming private launch and try CarCalc before you buy your next car.
Don’t buy it until you CarCalc it.