Alright, buckle up, because today we’re diving headfirst into one of the hottest debates of the 21st century: are electric vehicles (EVs) really cheaper than their gas-guzzling counterparts? While the EEVEE boys argue that fuel savings make up for the higher sticker price of electric cars, Team Internal Combustion says that initial prices and depreciation make gas-powered vehicles a better buy. So, which one is really better for your bank account? Let’s find out!
It’s no secret that EVs are generally more expensive upfront than gas-powered vehicles, with an average price difference of around $19,000. However, the federal tax credit for EVs and plug-in hybrids can help to offset this difference. Depending on your tax liability, you could qualify for up to $7,500 in tax credits, making the adjusted price of an EV more comparable to a gas-powered car. For example, with the tax credit, a Mini Electric would actually be cheaper than its gas-powered equivalent. But remember, Tesla and General Motors models are no longer eligible for this tax credit.
When it comes to maintenance, EVs are generally cheaper to maintain than gas-powered vehicles. With fewer components that can wear down and no need for oil changes, EV motors are simpler and more cost-effective in the long run. For example, using AAA’s Your Driving Cost tool, we found that the maintenance cost per mile for a Mini Electric is about 6.6 cents, while its gas-powered counterpart costs about 8.5 cents per mile.
As you might expect, EVs are cheaper to fuel than gas-powered vehicles. On average, driving a Mini Electric for 45,000 miles would save you around $2,500 in fuel costs compared to a gas-powered Mini. However, it’s important to consider the variation in electricity costs between states when calculating your potential savings.
While EVs are cheaper to run, they tend to depreciate more heavily than gas-powered vehicles, partly due to the federal tax credit and the rapid advancement of EV technology. However, if you factor in the tax credit, electric variants can actually lose less of their initial value over time.
Based on our side-by-side comparison, EVs are indeed cheaper to own these days, thanks in large part to the federal tax credit, lower maintenance costs, and fuel savings. So, while gas-powered vehicles might still have their place for certain uses, EVs are emerging as the more economical choice for many drivers.
Now we want to know, what’s your favorite electric car, truck, or SUV? Drop us a comment below and let us know! And if you enjoyed this video, be sure to hit the like button, subscribe, and turn on that notification bell for more great content from Ideal Money.