Electric vehicles (EVs) are not worth the extra money, yet. The true cost of an EV vs. a gas-powered vehicle isn’t so straightforward. While some comparisons are subjective, the edge goes to gas-powered based on cost and convenience. Below are some major considerations:
Upfront costs and Rebates (Gas Wins): EVs are typically more expensive than gas-powered peers. However, a maximum federal credit of $7,500 can offset that differential. Credits vary depending on battery capacity, buyer income, state and local incentives, and other stipulations. Also, if you lease a qualified vehicle, the credit will go to the lessor instead of you. State and local incentives for purchasing an electric vehicle also exist. This list compiled by the National Conference of State Legislatures shows incentives in each state for EV buyers.
Cost per mile (Gas Wins): The average cost of a Level 1 charger is $600, but a Level 2 charger costs $1,600. An L1 charger uses 120-volt electricity and can take 20 hours to charge, whereas an L2 charger uses 240 volts and charges in a few hours. Most likely, you will want the $1,600 Level 2 charger.
A mid-priced gas-powered car that gets 33 miles per gallon would cost $12.12 to drive 100 miles at $4.00 a gallon. A mid-priced EV, such as Chevrolet Bolt, Nissan Leaf or a Tesla Model 3, would cost $12.95 to drive 100 miles. We assume recharging the vehicle using mostly a commercial charger.
On an annual basis assuming 10,000 miles, it would cost $1,212 to drive a gas-powered car, versus $1,554 to drive an EV. That’s an annual savings of $342 per year for the mid-priced gas-powered car.
Insurance (Gas wins): Drivers don’t realize that EV insurance can be substantially more expensive than for gas-powered. These higher insurance costs are primarily due to more expensive parts and specialized labor to repair electric vehicles.
Depreciation (Gas wins): Within its first year, a brand new car’s value can depreciate up to 20%. For an electric car, this can be even greater, depending on how quickly technology has improved. Newer cars could have longer range and improved battery life, making older models obsolete. Car brand and model matter too. A comparison by CarEdge found that after five years, a Tesla Model 3 maintained around 71% of its resale value, while a Nissan Leaf maintained 55%. A Toyota Camry, on the other hand, maintained 76% of its resale value.
A gas-powered car’s tank doesn’t get smaller as it gets older, but as an electric car ages, its battery range dwindles, decreasing the maximum amount of miles you can drive before it needs to be recharged. While many factors can impact battery lifespan, from improper charging to cold weather conditions, it’s unavoidable that an electric vehicle’s battery will not always have the same range as it did when it was new.
Maintenance (EV wins): EVs have fewer moving parts compared to gas-powered vehicles, contributing to their lower maintenance cost. EVs don’t require oil changes or regular tune-ups. Because of regenerative braking, brake systems also last longer.
One of the largest costs associated with electric vehicles may be its eventual battery replacement. Those buying a new car may not need to worry about this, but those wanting to go the pre-owned route may see this cost come up sooner rather than later. Green Cars estimates that the average cost of replacing the battery is between $5,000 to $15,000, even before labor. However, modern batteries can last up to 10 years or more, depending on the car, how it’s driven and charged, and more. Additionally, according to Autoweek, many manufacturers offer warranties on EV batteries, sometimes up to 100,000 miles or 10 years.
Performance and feel of the drive (Tie): EVs are often quicker than gasoline cars, but they’re not always faster. This means that they can go from 30 to 50 mph more quickly, but top speeds are often lower than gas cars’.
The smooth, effortless feel of electric-powered cars and trucks can feel generic. That lack of vibration may be a non-issue for some drivers, but others may miss the engine feel of a gas cars.
Noise pollution (EV wins): An electric motor is significantly quitter than an internal combustion engine. In fact, there have even been concerns from safety campaigners about EVs being too quiet. In September 2020, U.S. regulators required EVs to produce their own sounds when driving up to speeds of 18.6 MPH.
Limited style options (Gas Wins): Most brands still offer a smaller range of EV models vs gasoline options, but EV options are broadening with time. While Tesla is far and away the leader in EVs, some buyers may want more styling and color options to choose from.
Refueling Convenience (Gas Wins): EV drivers should consider that charging stations are simply not as readily accessible along the highway as gas stations. Time may be spent searching for a rapid charging station, and tat wandering will be stressful.
