Cost is a big consideration no matter what type of car you buy, electric cars are great options to help the environment, but what’s the point if they’re out of your budget? Let’s look at the factors involved in pricing electric cars and see how they stack up against conventional cars.
Do electric cars cost more than conventional cars?
Electric cars have a higher cost than gas-powered cars, but are cheaper over their lifetime, mainly due to the lower price of fuel. Several studies describe this total cost of ownership.
Consumer Reports estimates that “for all EVs analyzed, lifetime ownership costs were several thousand dollars lower than the cost of all comparable ICE (internal combustion engine) vehicles, with most EVs saving between $6,000 and $10,000.”
But the long-term nature of these savings is a major caveat. Although batteries are becoming cheaper, the initial cost of electric vehicles is becoming more expensive. The fuel savings will also eventually make the electric car worth it, but you still have to be able to buy the car in the first place.
Cox Automotive estimates that the average starting price for an electric vehicle is still around $65,000. By comparison, mid-size cars cost about $32,000, and full-size cars cost $44,000. Additionally, the sticker prices for electric cars place them between full-size pickups ($60,082) and mid-size luxury SUVs ($69,608).
Do hybrid cars cost more than electric cars?
Hybrid cars are usually cheaper than electric cars. The average cost for a hybrid vehicle in May 2022 is $38,335, which is lower than the overall industry average of $46,426, and comparable to pickup trucks/midsize trucks, which average $39,783.
If you’re buying a plug-in hybrid vehicle, calculating lifetime gas costs will really depend on your use case. If your commute is short enough to rely on the battery and you only use gas power in an emergency, you might get the best of both worlds: lower upfront costs and cheap fuel.
Is it cheaper to charge a car with electricity than to fuel it with petrol?
The price of electricity varies as much as petrol, so it is difficult to make a direct comparison. However, one 2020 study pegs the difference in fuel savings for electric vehicles at a minimum of $3,000 over 15 years, and up to $10,500. Another 2018 study suggested keeping a petrol car on the road is twice as high as an electric vehicle.
Is electric vehicle maintenance more expensive?
Maintenance costs will largely depend on how powerful your vehicle is, but electric vehicles have a big role to play. With fewer moving parts than conventional cars and without the mechanical stress of internal combustion, electric vehicles can last a little longer.
Even with mechanics’ prices on electric cars rising due to increased computers involved, recent research suggests that electric car owners pay about 30% less in service costs after three years of ownership.
Is electric vehicle insurance more expensive?
Insurance for electric cars is actually higher because individual repairs can be more expensive, although they are less frequent.
However, the gap is not wide, with one study estimating that insurance costs are on average 15% higher for owners of electric vehicles. Fortunately, insurers are likely to lower rates as they gain confidence in the reliability of electric vehicles.
Are electric vehicles discounted?
Yes, electric cars have discounts, but it can be difficult to determine their availability for anyone, as the discounts and rebates depend on the region. For example, some states in America and even some cities get discounts that are not available anywhere else, as well as the other challenge is to determine the timing, usually the budget for this discount is for a specific period.
Subsidies are a big part of what makes electric vehicles financially viable, with research suggesting that “subsidies have enabled battery electric vehicles to reach cost parity in, for example, the UK, California and Texas, but not for hybrids electric vehicles do not.” who did not receive the same amount of financial support.” To find discounts for your area, be sure to check the US Department of Energy’s database.
Are electric vehicles getting cheaper?
Unfortunately, with supply chain issues on the rise and manufacturers cramming larger batteries into their cars to alleviate scale concerns, initial costs for electric vehicles are on the rise, with data showing that the average cost of electric vehicles from April 2021 to April 2022 will increase by 16, 1 rose. percent. %, compared to the industry average of 13%. However, gas prices are also rising and the difference can add up over time.
There are many variables that come into play when measuring your car costs, but in general, electric vehicles are cheaper than gas cars in the long run, especially if you take advantage of discounts and are an average user.