Are Electric Vehicles Cheaper To Own Than Gas Cars
Electric vehicles vs. gas cars: Which one comes out on top?
The choice of whether to buy EVs or traditional fuel cars is a difficult decision for many current and future car owners.
Some argue that its better to go with the electric option because they are eco-friendly and can save you money in the long run. However, others argue that the high initial cost of purchasing an EV makes them not worth the investment. So whos right and whos wrong?
The question of whether electric cars are more expensive than gas-powered vehicles is a hotly debated topic. Lets explore the common price concerns that consumers face when it comes to choosing between the two.
2022 Auto Refinance Rates
Are Electric Vehicles Cheaper Than Gas
The conversation surrounding California’s record high gas prices has motivated another aged discussion: electric vehicles.
Is it more cost effective to switch to an electric vehicle and where can I get one?
Are electric vehicles cheaper than gas-powered cars?
A 2020 Consumer Reports Study found that battery electric vehicle owners spend 60% less to fuel their vehicles compared to the average car in their class. According to AAA, although owning an electric car is about $600 more expensive annually, it’ll cost you less in individual categories: fuel, maintenance, repairs and tires.
But getting your hands on one is another challenge.
With looming gas prices and Gov. Gavin Newsom executive order that would ban the sale of new gas-powered passenger cars and trucks by 2035 worry in switching to electric has been rooted in a few things: price, charging accessibility and time on the road.
In January, Newsom outlined a $10 billion zero-emissions vehicle package, built upon his 2035 plan, to make the electric-powered vehicles more affordable and convenient for Californians.
Some of the initiatives include:
Setting aside $256 million for low income consumer purchases.
Settling aside $900 million to expand affordable and convenient zero-emission vehicle infrastructure access in low-income neighborhoods.
Video: Study Finds Transition To Zero Emission Vehicles Would Have Health Benefits, Save Californians
How can I get an electric car?
Electric Cars Vs Gas Cars Differences
Perhaps the most significant difference between electric vehicles and gas-powered vehicles is that they produce zero emissions.
Unlike gas-powered cars, electric cars do not release any emissions, making them more environmentally friendly than their counterparts.
Vehicles that run on gasoline produce harmful pollutants, such as carbon monoxide and nitrogen oxide, which contribute to climate change and respiratory problems.
Electric cars don’t have this issue, they can even help improve air quality in cities.
Electric cars are also more efficient than gas-powered vehicles. Gas-powered engines are designed for efficiency, while electric motors provide 100% torque from the get-go, allowing for faster acceleration and better mileage.
Electric motors can also be used in various ways to improve efficiency. For example, they can help change a gasoline engine to a hybrid electric-gasoline engine.
Gas cars cost more to maintain than electric cars, although, in the long run, they can save you money. Electric vehicles have fewer parts, and since they aren’t pushing pistons up and down all the time, that means less wear-and-tear! There is no need for an oil change or tune-ups there is also more consistent power with electric cars because they don’t have an engine that has to “rev up ” they have a more consistent power output.
Vehicles on the road infographic. Image source:United States Environmental Protection Agency
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Clean Energy For America Bill Reexamines Ev Tax Credits
The Clean Energy for America bill would eliminate the existing and stifling EV cap: $7,500 with no maximum price but a phase-out for individual automakers once they hit 200,000 total EVs sold. Tesla and GM have hit that limit, so no EV sales from these 2 manufacturers are currently eligible for the tax credit. Eliminating those barriers will make EVs seem much cheaper to the average US car consumer.
The recent announcement that the EV tax credit has been revised is really good news. The US Senate Finance Committee advanced legislation in May that would boost EV tax credits to as much as $12,500 for EVs that are assembled by union workers in the US. The bill would limit tax credits to vehicles with a retail price below $80,000 to qualify for the tax credits.
The new version of the credit would phase out over 3 years once 50% of US passenger vehicle sales were EVs. The US Senate Committee on Finance says the bill:
replaces the old rules with a free-market, technology-neutral system in which reducing carbon emissions becomes the lodestar of Americas energy future Instead of the 44 tax breaks from yesteryear, the new system will incentivize three goals: clean energy, clean transportation and energy efficiency.
This Article Addresses The Cost Of Electric Car Charging In The Us
The average cost for a Level 2 charger, which is usually found at home and can be installed by individuals, will run you about $1,200 and up to $8 per kilowatt-hour of usage. That means that if your vehicle needs 420 kWh on an annual basis , then it could cost as much as 6 months worth of electricity or over $2,600 annually.
You can save on a lot of costs and time when you invest in an electric car with a level 2 charger!
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How We Crunched The Numbers
We had three questions in mind when we put together these charts:
- How much does it cost to add 100 miles of range to the average ICE vehicle and the average EV?
- How have those costs changed over the last three years?
- How have those costs varied between different parts of the U.S.?
For gasoline, the Environmental Protection Agency reported that the average new vehicle sold in the U.S. in 2020 had a combined fuel-economy rating of 25.7 miles per gallon. Driving 100 miles in that average vehicle would use 3.9 gallons of gas.
On the electric-vehicle side, the EPA’s efficiency rating for EVs called “MPGe”, for miles per gallon equivalent gives consumers an idea of how far an EV can travel on 33.7 kilowatt-hours of charge. Why 33.7 kWh? That’s the amount of electricity that is chemically equivalent to the energy in a gallon of regular gasoline.
The average MPGe rating for 2022-model-year EVs sold in the U.S. is about 97, so driving 100 miles in that hypothetical average vehicle would use 34.7 kWh of electricity.
The charts above compare how the price of 3.9 gallons of gas has changed relative to the price of 34.7 kWh over time, using monthly data from the U.S. Energy Information Administration and the U.S. Bureau of Labor Statistics from February 2019 through February 2022.
CNBC’s Crystal Mercedes contributed to this article.
The Fueling Costs For A Gas
Prices for fuel vary all over the country, but Kelley Blue Book uses an average cost to help show the difference between charging and fueling. Using the average price of $2.88 a gallon of gas, a typical vehicle could cost around $34.50 to fill it up.
According to their example, you would visit the gas station at least three times a month, filling up with the same amount. By the end of the month, you would pay approximately $103.50 total for all three fueling stops.
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Lets Take A Road Trip
If paying for fast charges at a public station, EV savings largely vanish, considering the cost of a 300-mile road trip.
To recharge your battery in St. Louis for the 300-mile trip to Chicago, a Mach-E owner would end up paying $12.25 more than a RAV4 owner for the trip.
In Los Angeles, where gasoline prices are among the highest in the country, the recharge for a 300-mile road trip is slightly lower for the EV compared to the gasoline-powered car.
Will an EV pay off?
Over time, the average EV owner saves money because of lower fuel and maintenance, according to a 2020 Consumer Reports study.
A Mach-E was slightly more costly in the first five years of ownership than the RAV4, but slightly cheaper over the lifetime of the vehicles.
Is Charging An Electric Car Cheaper Than Gas
The average annual cost of charging an electric vehicle in America is $755, referred to as the egallon, compared to the average refill cost for a gas car which is $1,615. With these averages, yes, it is cheaper to charge an electric car than it is to fill a gas car across the year. These prices will vary greatly by state, but in our dataset, the cost of electricity was cheaper than gas for running vehicles. This is backed up further by the 2018 study done by the University of Michigan who found that EVs were around half the price to run compared to gas alternatives.
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Electric Cars Cheaper To Run Than Gas Study Finds
Electric cars can save Canadians thousands of dollars over their lifetime even without todays sky-high gas prices, a new study suggests.
Clean Energy Canada on the cost of owning electric cars in Canada.
The study compared six popular electric vehicles available in Canada with equivalent gasoline ones and calculated what owners would pay per kilometre for fuel, maintenance, insurance, taxes, and depreciation assuming eight years of ownership, 20,000 kilometres of driving a year, average federal and provincial rebates, and the average 2021 national gas price of $1.35/L.
In every single instance, the electric car was significantly cheaper, said Joanna Kyriazis, policy advisor with Clean Energy Canada, often saving owners $15,000 to $19,000 over eight years.
The study found a 2022 Chevy Bolt cost about 33 cents per kilometre to drive, for example, or 37-per-cent less than an equivalent 2022 Toyota Corolla hatchback. A gas-powered 2022 Hyundai Kona cost 44 cents per kilometre to run, or 27-per-cent more than an electric Kona.
Can Electric Vehicles Handle Canadian Winters
In wintry weather, electric car batteries can lose more than half their range. You can make up for this in part by warming up the car while its still plugged in, using economy mode settings and sticking to the speed limit. Canadians who drive 20 to 100 km a day and have access to a charging station may find that an electric car is the right choice, even in the winter. Another solution is to buy an electric vehicle with a longer-range battery, but of course it costs more.
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Final Thoughts About Cheaper Evs
Of course, the chip crisis is strongly affecting the automotive industry in general and the EV sector in particular and will most likely extend until 2022. It will create production problems for the near future.
But, as cheaper EVs assume global proportions, momentum will be hard-driven by the European and Chinese markets, which are expected to represent 72% of all passenger EV sales in 2030. By 2030, China and Europe are expected to achieve the feat of 50% of all cars on the road being EVs. This will be supported by policy measures that will emerge from European vehicle CO2 regulations and Chinas EV credit system, including fuel economy regulations and city policies that are intended to restrict new internal combustion vehicle sales.
In the US, nearly 60% of households have 2 or more cars, and many have the ability to install home charging. Around the world, governments and automakers are focused on selling newer, cleaner electric vehicles as a key solution to climate change. With 550 EV models predicted to be available from global auto manufacturers by 2022, interest in EVs will rise exponentially. A Massachusetts Institute of Technology study has definitively stated: Electric vehicles are better for the climate than gas-powered cars electric cars may actually save drivers money in the long run.
Electric Cars Vs Petrol Cars
There are a number of differences between electric and petrol or diesel cars. One of the key benefits is the cost to fill up.
With the average UK electricity price sitting at around 17.2p per kWh and if you assume an electric car will travel 3.5 miles per kWh on average, to travel 100 miles would cost around £5 or 4.91p per mile.
However, a petrol car would cost around £12 or 12p per mile if fuel cost £1.34 per litre and we assume the UKs average new car fuel consumption in 2019 was 49.2 miles-per-gallon for petrol cars. If you have a cheaper fixed tariff, then it’s likely the cost to fill up your electric car will be cheaper still.
The above is only an indication and depending on where you live, the prices you pay for both electricity and fuel and the vehicle you own may increase or decrease these savings.
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Rising Gas Prices Push Americans To Consider Buying Electric Cars
Rising gas prices could push more Americans to consider buying an electric car. A third of Americans told Gallup pollsters they would consider making the switch if prices keep going up. But supply chain constraints have limited the number of electric cars on the market, which limits the prospects for an immediate surge in sales.
Electric car prices have been falling as the cost of manufacturing batteries goes down. Over the next six years, the International Council on Clean Transportation estimates that electric cars will be as cheap to buy as gas-powered cars in every categoryand will remain cheaper to refuel and maintain.
Charging Infrastructure For The Electric Car
While Mr. Burns still regularly drives to the gas station, potentially having to contend with detours and waiting times, and fills his car with gasoline, Ms. Sparks is smart enough to want to invest in her own charging station. This gives her full flexibility when driving, safety when charging, and the convenience of being able to fill up her car in the comfort of her very own garage.
Depending on the model and range of functions, a wallbox costs at least 600. There may also be installation costs and adjustments needed to her houses electrical system. But many people buying electric cars might not have to bear the costs of charging at home entirely on their own: North Rhine-Westphalia and Schleswig-Holstein, for instance, are reimbursing 50% of the cost of a wallbox, and a number of cities like Hanover, Jena, Mainz, Munich and Nuremberg have similar subsidies in their programs. A government subsidy for the development of private charging infrastructure could be introduced soon too. 500 million will be made available for private charging facilities as part of the coronavirus stimulus package. Roughly speaking, this support package could subsidize half a million private wallboxes to the tune of 1,000 each.
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Installing A Charging System At Home
Not all electric cars have the same batteries and will require different power supplies to keep them charged. There are a few electric cars that have a charger that plugs into a standard 110v outlet. There are others that require a much more powerful charger to accomplish efficient charging.
Most of our phone chargers and computers use a 110v outlet with two to three prongs that plug into a common outlet. You may have seen that behind your washer and dryer that it has a weird 5-6 prong plug for the dryer to plug into. This is because it needs 220v to be able to produce the right amount of heat for your clothes to dry fast. Some cars can quickly charge depending on the amount of power available and have around an 80% charge in just minutes!
Electric cars are no different and need a higher powered outlet in your garage or near where you park your car to charge it properly. To start you will want to have an electrician walk you through the fuse box you have in your home. The last thing you want to do is burn your entire lifes work to the ground while trying to charge your new electric car.
How Much Does It Cost To Buy & Run A Petrol Car By Comparison
Though electric cars are generally more expensive to buy, they usually work out cheaper than an equivalent petrol or diesel in the long run, especially if you use them regularly. Weve already mentioned the lower running costs, but you dont have to pay road tax if you have a full-electric car with zero CO2 emissions and a list price of less than £40,000.
EVs also have fewer moving parts so there are less items to replace or repair, which means servicing costs are lower. In many cases, EVs have stronger residual values than petrol and diesel equivalents, so they may be worth more in future. If youre still not sure, What Car?s Fuel Comparison tool can help you work out whether an electric car is suitable for you based on your personal circumstances.
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Electric Vehicles Have Been Around For A Century
Cost of making a lithium-ion battery for electric vehicles has, for first time EVER, dropped below magic number to bring price of EVs below petrol cars: $100 KWhIt makes zero sense to buy petrol cars today and they will be gone by 2030. Good riddance.
As revolutionary as electric cars seem today, the battery-powered car isnt a novel idea. In fact, the first electric car made its grand debut in 1890, according to Energy.gov. It was a six-passenger electric wagon whose top speed was 14 mph. Sure, it was no Tesla. But the technology caught on thanks to socialites who preferred the quieter electric vehicles to the noisy and often smelly exhaust-producing gas versions of the day.
The automaker Fritchle produced 198 electric cars between 1909 and 1914, with the peak year of popularity being 1912. EVs were all the rage among wealthy, high-profile businesspeople of the time. Even charging stations were readily available for consumers to assemble and use at home.