Is it more expensive to buy an EV over a gas car? It's a complicated situation

By TechThop Team

Posted on: 18 Aug, 2022

The upfront cost of electric vehicles is higher than that of gas cars, but they cost less over the course of their lives as the cost of fuel goes down. In several studies, this total cost of ownership is broken down.

According to Consumer Reports, 'all EVs reviewed have been found to offer savings of between $6,000 and $10,000 over ICE vehicles' lifetime ownership costs.

The upfront costs for hybrids are usually lower than those for electric vehicles. In May 2022, the average hybrid car cost was $38,335, which was below the $46,426 industry average and comparable to small/mid-sized pickups.

The lifetime gas cost calculation for a plug-in hybrid will really depend on your use case. It's possible to get a lower upfront cost and cheap fuel if your commutes are short enough to use batteries.

As with gasoline, electric prices vary greatly, making it difficult to draw a direct comparison. According to a 2020 study, EVs could save up to $10,500 in fuel over 15 years through fuel savings. An EV costs twice as much to maintain as a gasoline vehicle, according to a 2018 study.

It depends heavily on how you treat your car, but EVs have an advantage. As EVs have fewer moving parts than traditional cars and don't suffer from the mechanical stresses of internal combustion, they tend to last longer.

In spite of the higher rates mechanics charge for electric vehicles due to their greater computerization, recent research suggests electric vehicle owners pay about 30% less in service costs over three years.

It is true that electric vehicle insurance is more expensive. It is because individual repairs are more expensive, although they are less frequent. It isn't a huge gap, however.

In one study, insurance costs for electric vehicle owners were estimated to be 15% higher on average. As EVs develop a reputation for reliability, insurance companies are likely to lower rates.

The availability of electric vehicle rebates can be tricky to determine, but they do exist. A rebate or discount will differ depending on the region. It is possible to find rebates in some states and even some cities that are not available elsewhere. Timing is another challenge. They are usually budgeted for a specific period of time.

A growing supply chain problem and EV manufacturers' tendency to cram bigger batteries into their vehicles to alleviate range anxiety are raising up-front costs for EVs. Between April 2021 and April 2022, the average EV

 Costs have increased 16.1% compared to an industry average of 13%. In addition, gas prices are also rising and may make up the difference over time.

In general, electric cars are cheaper than gasoline-powered cars in the long run, especially if you take advantage of rebates and use your vehicle moderately.

For more stories like this

Explore our website