While some electric vehicles have a higher upfront price than gas-powered vehicles, total ownership cost for electric vehicles prove to be lower in the long run, especially for those who plan to keep their car for a while.
Cision reports that according to Kelly Blue Book, electric vehicles average around $10,000 more than similar gas-powered cars at the time of purchase. The average selling price of a new gas-powered car is $46,320, while the electric car is $56,437. So, how do electric cars savings pan out?
Credits, Savings, and Future Planning
The EV savings begin immediately. Federal tax credits can cover up to $7,500 of the purchase price of an electric vehicle, taking a large chunk out of the original $10,000 price difference. Tax rebates are available to all those who purchase a new, not leased, electric vehicle from a manufacturer who has not yet sold 200,000 unit, which is all EVs except GM and Tesla. To claim your credit, fill out IRS form 8936. While federal tax credits are the largest, states, cities, and even certain utilities also offer credits.
California offers the most advantages, including a $2,000 credit on all zero emissions vehicles (on top of the federal credit) and more for low-income customers. Those in the San Joaquin Air Valley Pollution Control District who trade in a gas-powered car for an EV, may qualify for an additional $4,500. Individual cities, such as Los Angeles, also offer their own credits, as do utilities. The Omaha Public Power District, for example, offers residents a $2,500 credit for the purchase of an EV and home charging station.
Better Fuel and Maintenance Costs for EVs
Tax credits are only one reason electric vehicles are ultimately cheaper than their gas-fueled counterparts. For the most part, gas-fueled vehicles cost around $1,117 to fuel and maintain per year, while EVs cost $485.
EVs come with a Level One charger, which is a regular cord plugged into a regular outlet. Blink offers the HQ 150, which is a 32amp Level 2 charger, and can charge up to 4 times faster than a Level One. Blink has also recently revealed the new HQ 200, a new smart home charger with 50amps of power, allowing users to schedule their charging during off-peak electricity hours, and integrate to Siri, Alexa, or Google Home. Drivers can find the HQ 150 on Amazon and expect the HQ 200 to launch in summer 2022.
Additionally, most drivers report little to no maintenance on their EVs. On the other hand, gas-powered vehicles require regular maintenance, such as oil changes, coolant and transmission fluid, which increase the ownership cost. Combustion engine cars also tend to have worse fuel-efficiency on average, a fully charged electric car costs under $7 in electricity while gas vehicles cost about $40. Although at some point, EV drivers would be faced with replacing the battery, most are guaranteed for 10 years or 150,000 miles. Which is around the same time drivers want to replace vehicles anyway, whether they’re electric or gas fueled.
Comparing Two Sedans: EV vs. Gas Car
The Ford Focus ST and the Ford Focus Electric sedan, the EV starts costing less within a few years of ownership. The study considers different factors and offers scenarios based on usage, gas and electricity prices, sticker price, and tax rebate. In all options, however, the EV was ultimately cheaper. In a scenario with an average miles driven per year of 13,476, electricity costs of 12 cents per kWh, price of gas at $3.50 a gallon, and a tax rebate of $7,500, savings began in the fifth year of ownership. And by the eighth year, there was a $6,000 difference in favor of the EV over the gas-fueled vehicle. Other factors favorable to EVs not taken into consideration in this study were noise production, ease of driving, and more.
|Features||Electric Vehicle: Ford Focus||Gas Vehicle: Ford Focus ST|
|Average Electricity/Gas Costs||$0.12 per kWh||$3.50 per gallon|
|Tax Rebate||$7,500 Savings||N/A|
|Turning Power||Generate torque more efficiently.||Engine is routed to the drivetrain, resulting in less torque.|
|Convenience||Able to charge your car at home or at work.||Must routinely stop for fuel at gas stations.|
|Parking||EV priority parking spaces with chargers.||No priority parking.|
Zero tailpipe emissions.
Not directly powered by fossil fuels.
|Have tailpipe emissions, leftover oil, contribute to toxic waste.|
|Performance||Quiet Smoother drive||Constant noise production.|
For those interested in long-term savings, electric vehicles present a responsible, environmentally conscious way to save money.