How EVs and gasoline cars compare on total cost
From CNBC: 2024-08-20 13:07:48
Electric vehicles (EVs) may cost more upfront, but overall lifetime expenses for fuel and maintenance can make them cheaper than traditional gas cars. EV prices are approaching cost parity with gasoline models as battery prices decrease.
Consumers paid an average of $56,000 for a new EV in June 2024, compared to $49,000 for a gas car. Carmakers are lowering EV prices, with a federal tax credit up to $7,500 available. States and utilities may offer additional tax breaks.
Switching to an EV can save drivers $6,000 to $12,000 over the vehicle’s life compared to a gas car. EVs require less maintenance and are cheaper to refuel. Geographic location plays a significant role in determining the financial benefits of owning an EV.
Factors like electricity and gas prices, as well as access to home charging, significantly impact the lifetime cost of owning an EV. Cities with low electricity prices, high gas prices, and direct purchase incentives are most EV-friendly. Smaller range EVs are generally more cost-effective than larger models.