Save money with an electric vehicle
10.22.2020 - by Noah Barnes
Save money with an electric vehicle

A new Consumer Reports study shows what many of us who have been driving electric vehicles (EVs) have already known—that consumers can save money with an electric vehicle over the lifetime of the vehicle. Last year, we published our own comparison of the total cost of ownership between EVs and comparable gas vehicles, using data from our EV shopping website, PlugStar. While EVs do sometimes have a higher MSRP than gas vehicles, the low cost of electricity and the very little maintenance required on an EV more than make up the difference. We found this to be true whether buying or leasing, for different types of vehicles (sedans, SUVs, and minivans), and in different cities across the country.

Fuel and maintenance savings

Consumer Reports found that the average EV owner who charges their vehicle at home saves an average of $800–1,000 a year versus buying gasoline. On average, charging your vehicle at home is equal to paying $1.21 per gallon of gas. Consumers also save $4,600 in maintenance over the lifetime of the vehicle, as EVs have fewer moving parts that can break or fail and don’t require regular oil changes. They also found that newer, long-range EVs are not depreciating as quickly as some gas-powered vehicles, although this varies, depending on the vehicle.

The tools on Plug In America’s PlugStar.com website allow you to compare the total costs of any EV with comparable gas vehicles. For example, while a Hyundai Kona Electric has a slightly higher sticker price than a gas-powered Hyundai Kona, the costs of gasoline and maintenance more than make up for that difference.

Click image to enlarge.

 

Likewise, a Chevy Bolt has a higher sticker price than a Chevy Impala, but the Bolt is less expensive to operate overall.

Click image to enlarge.

 

Visit PlugStar.com’s Compare Vehicles tool to calculate your own savings.

The price of EVs is dropping

The declining cost of EV batteries is also making vehicles more affordable for families. There are nearly 50 models of EVs currently available in the United States, with many of those below the median sales price for a new car ($38,723), including the Nissan LEAF, Chevy Bolt, Hyundai Kona Electric, and Kia Niro EV. Because it is becoming cheaper to produce batteries, Kelley Blue Book found that the average sales price of an EV dropped 2% from September 2019 to September 2020, while the average price for gas vehicles rose 2.5%. By the mid 2020s, the price of an EV is expected to be on par with comparable gas vehicles.

Used EVs

Electric vehicles are also becoming more affordable as more used EVs are entering the market. The majority of EVs have been leased to consumers, so many of these are now entering the used market. Many used EVs can now be found for $10,000–15,000, just a fraction of their original MSRP. The advantage to a used electric vehicle is that, with fewer moving parts, the primary concern is the health of the battery. If the battery on a used EV is healthy, you can purchase a vehicle that is like new for a very affordable price. Our Used EV Buyers’ Guide provides more information to help you find the best used EV for your family.

Valuable tax credits and other incentives

Financial incentives also make EVs affordable for families. The federal government provides a tax credit of up to $7,500 when purchasing a new EV and a tax credit for 30% of the cost to install EV charging equipment. Many states and utilities also offer additional rebates and incentives for purchasing an EV or charging equipment. Visit PlugStar’s incentives page or Plug In America’s incentives map to find incentives in your area.

Tell us how much you’ve saved by driving an EV in the comments below!

3 comments on “Save money with an electric vehicle”
  1. Ralph Richards says:

    A guide to the best charging solution for home use would be very valuable. Actual minimum and max perimeters and reference to models, latest hardware price range would be helpful. Thanks for your very informative site.

    1. Noah Barnes says:

      Hi Ralph, You can find information on home charging stations on our PlugStar website at https://plugstar.com/chargers. Thanks!

  2. james epperson says:

    i wish they would standardize ev charging stations every where, and only use credit cards to charge. i love my BOLT. one more thing , we need more fast chargers between major cities like freeways every 50 miles..

Leave a Comment

Your email address will not be published. Required fields are marked *