This is the basic premise of the Stanford Marshmallow Experiment.

Young children sat down with one marshmallow in front of them. If they could resist eating the single marshmallow for fifteen minutes, they would receive two. In follow-up studies, those that resisted had better life outcomes.

We all struggle to plan for tomorrow because we see our future selves as strangers.

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The problems of tomorrow can be dealt with by someone else - even if that someone else is us in the future. It is why we have compulsory superannuation.

Most people acknowledge that electric cars are our future.

In my role as a technologist and futurist, I was recently asked when I thought electric cars (EVs) would achieve price equivalence with petrol cars (ICEVs). I told the audience we are already there! The outbursts were instant with people quoting ticket prices of EVs versus equivalent ICEVs.

The largest single cost of owning a motor car is not the purchase price. It is the depreciation cost.

Then registration and fixed costs followed by running costs such as fuel and maintenance. The actual purchase price is not the only factor to consider.

If people used the same logic when considering their home, we would not have the 67 per cent level of home ownership we have in this nation. Rent is cheaper than buying a home so logically everyone would keep renting!

Assume I am about to purchase a new small vehicle for my daily commute to work. I am trying to decide between a $30,000 ICEV and a $50,000 EV.

The EV seems significantly dearer but, making a number of assumptions and dropping the numbers into a spreadsheet I come up with the following.

The fixed annual costs are $5,900 for an ICEV versus $7,100 for an EV. Variable costs, such as fuel and maintenance, delivers a per kilometre cost of 12.4 cents per km for an ICEV versus 3.28 cents for an EV. Multiply those costs by the 13,400km ABS average for all Australian vehicles and the total is $1,662 versus $440.

Bring it all together and you have a total annual cost of ownership of $7,562 for an ICEV versus $7,540 for the EV.

The gap widens for every kilometre you travel over the national average.

I like to walk the walk and my household is now proudly ICEV free.

Having owned a Tesla for almost three years I have now added a 2020 Nissan LEAF to our garage to replace a hybrid vehicle.

I believe the electric future is here now!

Tell me if your next purchase will be an EV at ask@techtalk.digital.

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