What Is the Real Cost of an Electric Vehicle?. Electric vehicle (EV) ownership is increasing. With an expected 35% growth in global sales by 2023, you may be thinking if switching to an electric vehicle is worth the financial investment.
The long-term expenses of owning an EV are determined by a number of factors, including maintenance, personal driving patterns, and vehicle selection. Breaking down the primary expenses and benefits of EVs will help you decide whether an electric vehicle is best for you.
Real Cost Electric Vehicle: How much do electric cars cost?
According to Kelley Blue Book, the average transaction price for EVs is around $5,000 higher than for gas-powered vehicles. However, the cost of electric automobiles varies by manufacturer, with some models starting at less than $30,000.
If the price difference is a concern for you, you may want to wait before purchasing an EV. Many electric vehicle manufacturers are beginning to cut their pricing. Ford reduced the price of its Mustang Mach-E versions by up to $5,900 in 2023, while Tesla has reduced the price of its Model 3 many times this year alone. Federal EV incentives can also help you save money on your purchase, with the Inflation Reduction Act offering a tax cut of up to $7,500 if you qualify.
Depending on the type of EV you choose, your initial investment may be significant. However, long-term ownership benefits may pay off over the life of your vehicle.
Real Cost Electric Vehicle: Common Costs of EV Ownership
Aside from the initial cost of purchasing an EV, there are additional expenses that contribute to your vehicle’s break-even value. Consider how charging, maintenance, and infrastructure affect the long-term worth of your electric vehicle.
Real Cost Electric Vehicle: ELECTRICITY
In a direct comparison of similar electrically propelled and internal-combustion-engine (ICE) vehicles, the total annual cost of energy to operate an EV is cheaper than current fuel prices for comparable mileage. This is also true in Hawaii, the state with the highest average price per kilowatt-hour. Although electricity rates vary by state, Consumer Reports discovered that EV owners pay 60% less than ICE owners on petrol.
EVs can also be up to 100% efficient by recovering lost energy via regenerative braking. Without this energy recapture, “EVs are 60% to 73% efficient,” according to the EPA. Meanwhile, combustion-powered vehicles can only convert 12% to 30% of their fuel energy to motion. This means that EVs consume more of the energy you pay for to drive the car than ICE automobiles.
Real Cost Electric Vehicle: Home Charging Ports
EV charging stations are accessible for public use throughout the country, with varied costs for each. However, for individuals in need of additional convenient charging choices, a home charging outlet may be worth the expenditure. Installing a charging connector allows you to simply charge at home, eliminating the need to find a charging station while on the move.
According to HomeAdvisor, the typical cost of a single-port Level 2 charging station is between $500 and $700, with an installation fee ranging from $400 to $1,700. This may be a significant investment, but with government incentives available to offset these costs, the convenience may be worth the additional expense up front.
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Real Cost Electric Vehicle: MAINTENANCE
EVs have an operating cost advantage over gas vehicles since they do not require as much routine maintenance as ICE vehicles, such as oil changes. However, you should consider the potential costs if you are involved in an accident with your EV.
According to a survey conducted by claims analysts CCC Intelligent Solutions, minor, non-luxury EV repairs cost 26.6% higher on average than non-EV repairs. Electric SUVs cost up to 53.5% more to fix and require 3.4% more work hours than gas-powered competitors. However, AAA reports that EVs continue to have the lowest expected costs for overall maintenance, repairs, gasoline, and other ownership expenses.
