The true costs of owning an EV
Electric vehicles (EVs) are likely going to be everywhere fairly soon. You might even be considering buying one yourself. Just like any major purchase, it’s worth thinking about the costs of electric cars. Let’s take a look.
Despite some improvements, the upfront cost of EVs is still much higher than the upfront cost of gas vehicles. According to Kelley Blue Book:
- $55,000 is the average price for a new EV.
- $35,000 is the average price for a gas vehicle.
If you buy an EV, you’ll get some tax credits, but they don’t come anywhere near making up for the $20,000 gap.
Your insurance rates will be higher if you drive an EV. One report found auto insurance rates for EVs are about 15 percent higher than gas vehicles.
One of the main reasons for buying an EV is to save money on fuel. And yes, gas is still cheaper than electricity. But the latter is getting more expensive. As the price of gas goes up, so does the price of electricity.
Average yearly cost of fueling a gas car is about $1,120 vs. the average yearly cost of charging an EV is about $485.
That $485 doesn’t take into account the price of commercial EV charging stations, which are usually more expensive than a home charge. Installing a home charging unit is about $2,000.
The cost of repairs is higher for EVs than it is for gas vehicles. Over the course of a year, the average cost to maintain an EV is anywhere between 1.6 and 2.3 times higher than the average cost to maintain a gas car.