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These days, buying a car involves more than simply choosing a model or a certain brand. Today, the question that bothers many drivers is electric vs gas, which one saves money in the long run?
With gas prices fluctuating and electricity rates varying, each type of vehicle comes with different costs beyond the sticker price. So, let’s compare electric car vs gas in detail to see which is the better purchase.
Purchase Price: Electric Cars Still Cost More Upfront
Let’s begin with the biggest factor when choosing between electric car vs gas car, and that is the price. So, what is the average price of electric car vs gas car?
A typical new gas car costs around $48,000 on average, while most electric cars average at about $55,000.
This is a clear difference in price, especially now, when the $7,500 incentive for buying an electric car is no longer available.
So, what makes EVs so much more expensive than gas-powered vehicles? Well, the battery is the biggest factor. The battery contains many precious metals like lithium. These minerals are expensive to mine and this adds up to the total price of the vehicle.
Fuel Costs: Electricity Is Cheaper Than Gasoline
When we compare electric vs gas in terms of fueling costs, there is one clear winner: electricity. Charging an EV costs much less compared to filling a gas tank.
Let’s take an example, a gas car that gets 30 mpg and a driver who travels 12,000 miles a year. At $3.50 a gallon, the driver will spend about $1,400 a year on fuel.
When it comes to electric cars, driving the same distance might use 3,600 kWh of electricity. With the average rate per kWh in the US being $0.14, that’s about $500 a year spent on electricity.
Drivers can use a gas vs electric car cost calculator to check the exact savings based on more precise local fuel and electricity rates. It is worth noting that those who charge at home during off-peak hours will save even more.
Maintenance: Electric Cars Have Fewer Moving Parts
When it comes to cars, maintenance is a big area of concern when buying a new vehicle.
In this regard, electric cars also have an edge over gas-powered vehicles. This is the case because electric cars have fewer moving parts than gas cars. There is no oil to change and no spark plugs to replace.
The only maintenance on an electric car is routine tire rotations, brake pad and rotor replacements, and that’s about it.
On average, EV owners spend about 30% less on maintenance a year compared to gas car owners.
Battery Replacement: The Hidden Cost of Electric Cars
We noted that maintenance is lower with EVs, there is still one big concern, the battery! A replacement EV battery can cost anywhere between $5,000 and $15,000, depending on the model.
Still, there is a warranty on the battery, but this warranty is often limited at 150,000 miles or 8 years.
Issues with the battery start to appear above this 8-year timeframe and this is why older EVs depreciate so much. Nobody wants to risk potentially spending $15,000 on a new battery pack.
While in gas powered cars, there is no lithium-ion battery, so when it comes to an electric car vs gas, choosing gas is the way to go in this regard.
Charging at Home vs Public Stations
When it comes to electric vs gas, we also need to learn the charging convenience and how this also affects costs.
Home charging is the cheapest option if you have an EV. With a Level 2 charger preferably. However, this charger costs about $1,000 to $2,000. This is an investment that every EV owner should do if they have a house.
With this charger, you can charge your EV at decent speeds and keep it simple and affordable. Especially if charged overnight at lower rates.
Public fast chargers, on the other hand, cost more per kWh. These chargers charge owners almost equivalent to gas rates.
So, if you live in an apartment and you have limited access to home charging, then in the electric car vs gas car comparison, a gas vehicle makes a lot more sense.
Insurance, Resale Value, and Long-Term Costs
Now let’s make another comparison between electric vs gas cars when it comes to their insurance.
When it comes to insurance, EVs tend to cost more to insure because of their repair parts. The electric motors and batteries are very sophisticated and tend to cost a lot of money. Not to forget the small number of repair shops that handle EVs.
Resale value is also very poor when it comes to electric cars. EVs depreciate much faster compared to gas cars. The older they are the less they are worth. After 8 years when the warranty expires, their value drops significantly.
This gives an advantage to gas-powered cars. Gas cars are cheaper to maintain in the long term and also hold their value a bit better.
Real-Life Example: Comparing Total Costs
Now, let’s make a comparison between electric vs gas and see their total costs when it comes to fuel/electricity, maintenance, insurance, and registration fees.
As you can see, this is a difference of $1,150 per year in favor of the electric car. Over eight years, the EV saves more than $9,000 in running costs.
However, after 8 years, it is highly likely that these savings will go towards a new battery or electric motor.
Verdict: Electric Cars Win in Long-Term Savings
When you compare electric vs gas, electric cars cost more upfront and are cheaper to run. Cheap electricity at home and affordable maintenance make them a very good purchase when new.
When it comes to used cars, electric cars depreciate a lot because of their expensive batteries. These batteries can cost up to $15,000 to replace.
That’s why if you want to purchase new and don’t mind the infrastructure, choose electric. While if you want to get a used vehicle, choosing gas is better since you don’t have the risks involved with older EVs and expensive battery replacements.