Going car shopping with the world’s most rational human.
If you’ve hung around these parts, you probably know that this team of bloggers is also the core of the Severin Borenstein fan club. We love the man. Not only is he a superb economist, amazing advisor, friend, mentor and boss. But, he is also the most detail oriented human you have ever met. This is a good thing when it comes to econometrics and rate design, but can be detrimental in real life. For example, the number of conversations we have had at lunch over what rate he is on and when to heat up his human sous-vide machine (aka “the hot tub”) cannot be counted on two hands. In my first week at the Energy Institute I got publicly shamed for using a debit card (“You are leaving rewards on the ground”). He lacks any appreciation for the fact that for some, the benefit of watching soccer World Cup matches during electricity camp may be higher than the social value of their attendance. He obsesses over schedules, space, times etc.
He has also driven the same worn out Toyota Prius, which he bought used, for the better part of a decade. He had not bought a new car in 27 years. His lovely spouse Margaret (avid reader of our blog – hi Margaret!) was justifiably worried about his safety when he drove said Prius to Folsom for CAISO meetings. After all, the average other vehicle on the road is the size of the Death Star and about as dangerous. So, after much nudging he signaled that he might be in the market for a new electric vehicle (EV). That was like when the record scratches to a stop. Obi-Wan is buying a new ride. I want in on that experience. So I offered to take Severin car shopping, and here is what I learned.
First off, a good microeconomist needs to come up with a choice set. Severin wanted something safe, good range, reasonably fun to drive, and possibly (but not necessarily) with enough room to possibly replace not only the Prius, but the collector’s item minivan they use for dog walks and nursery runs. I opted for visits to Toyota (Prius Plugin), VW (ID.4), BMW (i4), Kia (EV6 and EV9), and finally Hyundai (ioniq 5). We left out some obvious ones (Audi, Mercedes, Honda), but we could always come back another day.
Second, you need to schedule test drives. This used to be a pain in the behind, as you needed to call, figure out times and look up phone numbers. ChatGPT to the rescue. I prompted it with the vehicles I was interested in, said I had about 4.5 hours for this adventure and to please help me schedule test drives. Two iterations later I had phone numbers for the relevant person at each dealership and an itinerary, which could be printed out and fit into the required time. Highly recommend.
Third, Severin and Margaret showed up at my house and we headed out. Toyota was a bust. First off, the dealer did not seem at all interested in selling us a Prius Plugin (which might have something to do with the unobservable incentives (s)he faced). But maybe more importantly, the ride felt too much like what Severin had already. A Prius. Even though it’s quick now.
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We moved on to VW. We were 100% distracted by the (now no longer imported due to the tariffs) id. Buzz. Severin’s hippie soul lit up. As did mine. The thing is huge! But lovely. If you’ve got a team to transport and like comfort and an unusual design and lots of range, it’s a winner! But too much real estate for Team Borenstein. The ID.4 didn’t move any of us. Rumors of slow charging speeds and uninspired design made this a no go.
Severin liked Kia’s EV6. The sales team was competent, not pushy and incredibly knowledgeable about the cars they were selling and the competitors. After driving the EV6 Severin noted that it felt like my own ioniq 5. We learned that it is essentially the same car, as Hyundai and Kia share ownership and the same platform (we teach integration in Industrial Organizations!). We thought Hyundai’s design won out, especially as Max tried to explain the importance of the Lancia Delta Integrale in automotive history to Severin.
The BMW dealer was the most fun. Severin just looked at the offered lease deal for the i4, which I thought was a good deal for what you get, but his words “I am supposed to pay that much? For a car? Each month??????” He initially refused to even sit in it, but after some nudging, got to smell the Alcantara leather and feel the Bavarian lumbar support. We left.
After a slice of pizza and some kombucha, we finished up at Hyundai, where he drove a lower trim ioniq 5. The lot was full of them, and he loved it. It checked all the boxes. He was not ready to buy, and this is where the fun began. When we walked off the lot, the manager was running after us literally yelling “I will give you 20k off sticker if you sign today!!!!”. But Severin smelled a neoclassical rat and went home.
I thought we were done. But not quite. There was a nationally advertised deal for the car for $2,999 down, $189/month. He called the dealership to lease the car and they said “We could never sell you the car at that price, we would lose money. Why don’t you come in and we can talk about it?” More shenanigans ensued. Severin got grumpy and decided to continue driving his Prius (in which he had installed a new LED brake light himself! That light will outlast the car.).
After what I assume was Margaret making him see the light, he decided to check out the Toyota RAV4 Plugin Hybrid. He found a dealer that had one in stock and did not charge $500 for a test drive. He loved it. He hired a broker not named Max, who got him a lease offer and a cash offer. I will let you guess how much of the federal subsidy was passed through in the lease deal. Assuming 3 years, 5% discount rate, the pass through was zero. Meaning the dealer would absorb the entire subsidy. Fun. Severin bought the car flat out instead. Next step is to transfer those “TAX GAS” plates to the new ride. Then he and Margaret are faced with a much harder decision of which rescue pup to adopt!
I enjoyed spending a lovely afternoon with two wonderful humans. Although I was hoping some dealer was going to tell Severin how much money he was going to save by charging his car and watching his bit of remaining hair catch fire. But maybe a warning email went out to all the dealers from someone who reads this blog…..
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Suggested citation: Auffhammer, Maximilian. “Putting the EV in sEVerin” Energy Institute Blog, UC Berkeley, September 22, 2025, https://energyathaas.wordpress.com/2025/09/22/putting-the-ev-in-severin/
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