As the world's economies recover gasoline prices are going to start to go up again as drivers resume their old habits of driving. When gasoline prices reached their heights during the summer of 2008 people realised that the cost of a car involves more than it's purchase price, it includes the cost of fueling it, which can cost more than $3,000 a year. There is a company called The Better Place Project  that is adopting the cellphone providers business model by "giving away the car," while billing the drivers for the miles driven.

BP will be able to do this because it's cars are electric and electricity is cheaper than gas. When you sign a three-year contract BP will lease you a car for free. You will be able to charge it at home and at work with a special charging appliance.

If you are in a hurry to recharge there will be "service stations" where workers will be able to swap battery packs faster than you can fill-up a gasoline motorvated automobile.

The current gap between gasoline prices and their per-mile equivalent in electricity is $3 per gallon. In countries with high gas prices like Europe this can be as high as $4. Better Place uses the difference to subsidize it's cars.

For the drivers that lease the "free cars" BP will charge them $.50 a mile, while the cost of the electricity costs the company $.02, the difference going to the company to reimburse it for the cars' original cost plus the operating costs to run the service stations.

For the drivers that buy the Electric Cars in the conventional manner (BP will own the battery) and charge those owners $.15 a mile. When they drive 10,000 miles the company will make $1,000 a year in profit. The battery packs are designed to last ten years.

A Better Place is counting on gasoline prices rising faster than the cost of producing electricity as more renewable sources of electric power come online in the future. The production of crude oil is declining while the generation of electricity from renewable sources is theoretically unlimited. As the price differential between gasoline and electricity increases the company will be able to pay-off the cost of the battery packs faster, making more money.

With no Greenhouse Gas emissions BP will be able to get government money to pay for the construction of the battery service stations and public charging appliances.

BP's Electric Car will be ideal for a state like Hawaii that has to import all it's gasoline.

The utility companies are planning on profits from millions of Electric Cars recharging every night, Click Link Below: "Electric Cars To Drive Smart Electrical Grid"

Electric Cars To Drive Smart Electrical Grid