Electric Cars vs. Gasoline Cars: Are They Cheaper to Own Long-Term?
Many people assume that gasoline cars are cheaper to own and run long-term compared to electric vehicles (EVs), but the truth is that EVs can often save you money on monthly ownership costs. This article explores key factors that contribute to this phenomenon and provides real-world examples.
Lower Fuel Costs
One of the most significant factors in the cost savings of EV ownership is lower fuel costs. When traveling the same distance, charging an EV is far cheaper than filling up a gas car.
Electricity vs. Gasoline:
Charging an electric vehicle (EV) is generally cheaper than filling up a gas tank. The cost per mile for electricity is often significantly lower than for gasoline.
The average cost of electricity to drive 100 miles in an EV is $2 to $4, while the cost of gasoline to cover the same distance is estimated to be around $17 to $21.
Maintenance Costs
EVs have fewer moving parts than internal combustion engine (ICE) vehicles, which can lead to lower maintenance costs. Here are some specific savings:
no oil changes
reduced brake wear (thanks to regenerative braking) which lasts over 100,000 miles
less need for frequent service and repairs
Since EVs rely on fewer components, they often require less maintenance and repairs. This can significantly reduce the monthly and long-term costs of owning a car.
Incentives and Rebates
Many governments offer financial incentives to encourage the purchase of electric vehicles. These include tax credits, rebates, and grants which can help reduce the effective purchase price:
Tax Credits: Federal tax credits range from $2,500 to $7,500 depending on the type and size of the EV.
State and Local Incentives: Some states and municipalities offer additional benefits such as reduced registration fees, access to carpool lanes, and incentives for charging station installation.
Insurance Costs
Insurance costs can vary, but some studies suggest that EVs may have comparable or lower insurance costs than gas vehicles. This is due to the lower probability of severe accidents and the reputation for being safer.
Depreciation
Resale value can be a significant factor in long-term cost of ownership:
While the resale value of EVs can vary, with increasing demand and market acceptance, some models hold their value better than gasoline vehicles.
Resale value can impact the overall cost of ownership, as higher resale value means the car retains its value after several years of use.
Total Cost of Ownership
When considering the total cost of ownership over the long term including purchase price, fuel, maintenance, and depreciation, EVs can be more economical:
For example, let’s consider the monthly costs of an EV vs. a gas car for a hypothetical scenario:
EV: Higher initial cost Lower monthly fuel costs Lower maintenance costs Potential for tax credits and rebates Potentially lower insurance costs Better resale value
Gas Car: Lower initial cost Higher monthly fuel costs Higher maintenance costs (e.g., oil changes, transmission servicing) No tax credits or rebates Higher insurance costs (if applicable) Lower resale value
Conclusion:
While the initial purchase price of an electric vehicle (EV) may be higher, the overall monthly ownership costs can be lower due to savings on fuel, maintenance, and potential incentives. If you plan to keep the vehicle for several years, the long-term savings can be substantial.
EVs are not only environmentally friendly but they also offer significant cost benefits over traditional gasoline cars. Consider the total cost of ownership to determine if an electric vehicle is right for you.