March 1, 2024

Faith Macfarland

Automotive Advancements

Cost of owning and operating an electric vehicle vs. gas vehicle.

Introduction

Still don’t know an electric vehicle is right for you? The cost of ownership and operation are often a major consideration when considering whether or not to buy an EV. In this article, we’ll walk through the costs associated with purchasing and maintaining an electric vehicle. We’ll also compare them to traditional gas-powered cars so you can make the most informed decision possible.

The cost of owning and operating an electric vehicle can vary widely based on the type of vehicle, how you drive, and whether you have access to free charging.

The cost of owning and operating an electric vehicle can vary widely based on the type of vehicle, how you drive, and whether you have access to free charging.

  • The initial purchase price: Electric cars are more expensive to buy than gas-powered cars. However, if your car is powered by electricity from solar panels at home or wind energy from a farm nearby (and they’re cheaper than fossil fuels), then this may not be an issue for you.
  • Fuel costs: Electricity is cheaper than gasoline–but only when it comes out of the wall socket! Many people don’t realize that charging up their EVs at home will likely cost them more than filling up at their local pump with regular unleaded fuel.*

You can offset some costs by taking advantage of rebates and tax credits.

  • Rebates and tax credits are available in some areas.
  • Rebates are usually based on vehicle type, battery size and state. For example: In California you can get up to $2,500 towards an electric or hybrid car purchase or lease by applying for a Clean Vehicle Rebate Project (CVRP) rebate.[1] The funds come from the state’s cap-and-trade program revenue that’s been earmarked for clean air initiatives like these.[2]
  • Tax credits are usually based on income level, but there are also federal incentives for buying an EV if you live in certain states like Georgia or Texas.[3][4]

EVs are currently more expensive for the consumer than gas-powered cars.

EVs are currently more expensive for the consumer than gas-powered cars. The reason? They’re a new technology, and it costs money to develop them. However, as EVs become more popular and are mass produced, their price will decrease over time as they become more affordable and efficient. This may be partially due to government incentives and tax credits that encourage people to buy EVs instead of traditional cars–and because of this trend, many states offer special incentives for those who want an electric vehicle but don’t have enough cash on hand (or just aren’t interested in paying extra).

Electricity prices are rising in most areas of the country.

Electricity prices are rising in most areas of the country. For example, from 2014 to 2019, electricity prices increased by an average of 4{a5ecc776959f091c949c169bc862f9277bcf9d85da7cccd96cab34960af80885} per year across all states. Those increases have outpaced inflation (2{a5ecc776959f091c949c169bc862f9277bcf9d85da7cccd96cab34960af80885}) and wages (1{a5ecc776959f091c949c169bc862f9277bcf9d85da7cccd96cab34960af80885}). So if you’re paying more for your electricity right now than you were five years ago–and chances are good that you are–you might be wondering why it costs so much more to power an electric vehicle than a gas-powered one.

EVs tend to cost less per mile driven than a gas-powered vehicle.

EVs cost less per mile driven than gas-powered vehicles.

While the upfront cost of an EV can be more expensive than a gas-powered car, you’ll end up saving money in the long run because of lower maintenance costs and fuel expenses. In fact, some studies have shown that EVs can save you up to $1,000 per year on gas costs alone!

Ownership costs for electric vehicles vary widely depending on your usage, but they’re usually cheaper with electricity

Electric vehicles are more expensive than gas-powered vehicles. That’s just the truth of it, for now at least. But that doesn’t mean they’re not worth the investment–and there are many benefits to owning an electric vehicle (EV) beyond just being green.

For starters, EVs have lower maintenance costs because they have fewer parts and less wear on them due to fewer moving parts and no combustion engine or transmission fluids to change out regularly. They also require less frequent oil changes because they don’t need any oil at all; instead of using fossil fuels like gasoline or diesel fuel to generate electricity for the car’s battery pack(s), an EV uses regenerative braking or solar panels mounted on top of them (if applicable). This means you won’t have any out-of-pocket expenses when it comes time for an oil change visit!

Conclusion

We hope this article has given you a better understanding of what it takes to own an electric vehicle. While there are many benefits, there are also some costs associated with purchasing and maintaining an EV. However, these costs can be offset by taking advantage of rebates and tax credits that are available in most areas. If you’re considering making the switch from gas-powered cars to EVs–or just want more information before making that decision yourself–we encourage you to contact us today!