Electric Car vs. Gas Car Costs: Which Truly Saves You The Most Money?

By The Car Coach Lauren Fix

There is a push for every driver to switch to electric, and almost every automaker has invested billions of dollars into expanding their electric vehicle lineups with hopes that you will make the switch.

Consumers, though, need to do the math and see what works best for them and your budget and not be pressured in to what may or may not work for you.

What are the costs?

The debate rages on concerning which kind of vehicle will save you the most money overall?

Let’s look at the numbers, there is plenty to think about.

When you compare the cost comparison between gas and electric, there are six factors that can fluctuate but are critical to doing the math.

Most EVs still have higher-than-average starting prices, discouraging plenty of cost-conscious buyers.

The cost of regular gas-powered cars don’t come with any tax credits.

Then there are factors like auto insurance, general maintenance, and resale value to consider. You also have to weigh the costs of filling up the tank at the gas pump versus charging your EV charger, either at home or at public charging stations.

Here’s how everything breaks down.

Purchase Price
The average price for a brand new EV is about $55,000. That’s considerably higher than the average four-door sedan, which runs about $35,000, according to Kelly Blue Book. Tax credits and gas savings can save you money, however, it’s going to take a few years to make up a potential $20,000 difference.

There are some lower cost EV’s like the Nissan Leaf, KIA Soul, Hyundai Kona and Chevy Bolt EV, but the average EV is much more expensive. EVs still demand a larger upfront financial commitment than gas-powered cars. The average cost of a home charger plus installation is $2000.

Tax credits can help lower the price of a new EV. The average federal tax credit through rebates vary from state to state and by brand, ranging from $2500 to $7500. Plug-in Hybrids offer lower rebates and there’s no rebate for gas or diesel vehicles.

Insurance is a big factor to consider, too. The average cost of an electric car is 23 percent + more expensive because the car itself and parts cost more to repair and replace. Gas powered vehicles cost less to repair if in a collision.

Cost of fuel, as the price of gasoline rises, so does the cost of electricity. The average fuel costs fluctuate, but as of today it’s about $1,120 per year. The annual cost to operate an electric vehicle, though the costs differ as well, is about $485 per year and owning a home charger can lower those fees.

What about Maintenance?
Some people say there is no maintenance required on EV’s, but that is not true. If there are moving parts there is maintenance. Granted, there are less moving parts, but the annual costs are about $900 per year and around $1200 per year for gas or diesel engines.

The Bottom Line
The average length of time drivers keep a new vehicle is about six years, with an average yearly cost of $3300 for EV’s and $3900 for gas powered cars.

Totaling all factors, total costs over the average use of the vehicles are $71,770 for EV’s and $58,664 for gasoline powered cars.

You’ll never make up the initial expense difference over the lifetime of your more expensive electric vehicle. Spending tens of thousands of dollars on any vehicle is a big decision for most people, so it’s worth digging deeper into the true overall cost of each vehicle.

No matter which kind of car you end up with, we have plenty of great tips on how to save money when buying a new car.

Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, analyst, author, and television host.  A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and aspects, energy, industry, consumer news, and safety issues.   

Lauren is the CEO of Automotive Aspects and the Editor-in-Chief of Car Coach Reports, a global automotive news outlet. She is an automotive contributor to national and local television news shows, including Fox News, Fox Business, CNN International, The Weather Channel, Inside Edition, Local Now News, Community Digital News, and more. Lauren also co-hosts a regular show on ABC.com with Paul Brian called “His Turn – Her Turn” and hosts regular radio segments on USA Radio – DayBreak. 

Lauren is honored to be inducted into the Women’s Transportation Hall of Fame and a Board Member of the Buffalo Motorcar Museum and Juror / President for the North American Car, Utility & Truck of the Year Awards.  

Check her out on Twitter and Instagram @LaurenFix.

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Leave a Comment

5 Responses to “Electric Car vs. Gas Car Costs: Which Truly Saves You The Most Money?”

  1. Rich Koch says:

    It was refreshing to read such an honest evaluation. I get tired of reading all the breathless boosting for EV’s without any balance. You have given an excellent summary, even without mentioning hours-long recharge times, limited electric grid capacity, and the large environmental footprint of those big batteries. Thanks for being the adult in the room.

  2. Tristan says:

    Your numbers are WAY OFF!

    I’ve owned a cheap EV for 5 years.
    $0 in maintenance so far.
    Paid $30,000 for it brand new.
    At 4.5 years I paid it off in my fuel/maintenance savings and am now basically paying $0.10/”liter” or $0.40/”gallon” to drive anywhere. I’ve got about 110,000kms (65,000miles) on it. The three times I’ve brought it to the dealer for maintenance I’ve been billed zero dollars. No oil changes, no brake issues, no carb, no values, no belts.

    Stop this BS reporting on electric cars.

  3. Michelle says:

    Sorry, but where are you getting these numbers? I work in Clean Transportation and know for a fact the average cost of maintenance for an electric vehicle per year is actually $330. Plus, the moving parts of an Electric Vehicle are only a fraction of a gas car. Gas cars have over 2,000 moving parts on average while Electric vehicles have about 20.

  4. Michael Jones says:

    What about resale value between the two types of vehicles?