Comparing the Costs of Electric Cars and Gas Cars

By Craig Fitzgerald

Introduction

With gasoline prices hovering above $3.50 per gallon, many drivers are contemplating a shift to electric vehicles (EVs) for their daily commute. The allure of reduced fuel costs and the promise of a greener footprint make EVs an attractive option. But is the switch financially justifiable, especially when considering the investments already made in gas-powered cars?

The Real Cost of Switching to Electric Vehicles

Most of us have significant "sunk costs" in our current vehicles—money already spent that can't be recovered. Back in 2009, when gas prices soared higher than today's rates (when adjusted for inflation), consumers faced a similar dilemma. At that time, the only alternatives were hybrids like the Toyota Prius and the Honda Insight. While they offered better fuel economy, the overall costs—including sales tax, registration, and depreciation—made it hard to justify trading in a gas guzzler for a new hybrid.

Understanding Fuel and Energy Costs

EVs change the equation by eliminating gasoline purchases altogether. Instead, drivers rely on electricity, which can be sourced and priced differently than fuel. The majority of EV owners—estimates range from 79% to 85%—charge their vehicles at home using Level 2 chargers. This home charging significantly reduces costs compared to public charging stations or gasoline purchases.

Maintenance and Ownership Costs

Beyond fuel savings, EVs often have lower maintenance costs. They lack many of the complex systems required for internal combustion engines (ICE), such as exhaust systems, oil changes, and extensive cooling systems. Fewer moving parts mean fewer things that can go wrong, translating to savings over the vehicle's lifespan.

Cost Comparison Across Vehicle Classes

To truly understand the cost differences, let's compare similar vehicles across different classes. We'll examine compact crossovers, compact cars, full-size pickups, and hybrids versus EVs. We'll focus on the cost per mile and annual costs based on an average of 15,000 miles driven per year.

Compact Crossover: Chevrolet Bolt EUV vs. Honda HR-V

The Chevrolet Bolt EUV, an all-electric compact crossover, offers 247 miles of range on a full charge of its 65 kWh battery. Charging at home at the national average electricity rate of $0.17 per kWh, a full charge costs about $11.05, resulting in a cost of approximately $0.04 per mile.

In comparison, the gas-powered Honda HR-V has a range of 392 miles with its 13.2-gallon tank. To match the Bolt's 247-mile range, the HR-V would need about 8.316 gallons of gas, costing roughly $29.11 at $3.50 per gallon. This translates to about $0.12 per mile.

Annual Costs:

• Chevrolet Bolt EUV: $600
• Honda HR-V: $1,800

Compact Car: Nissan Leaf vs. Toyota Corolla Hatchback

The Nissan Leaf, equipped with a 62 kWh battery, provides 226 miles of range. Charging it fully at home costs about $10.54, equating to $0.047 per mile. The Toyota Corolla Hatchback, with a combined fuel economy of 35 mpg, would need about 6.45 gallons of gas to cover the same distance, costing $22.58 and resulting in $0.10 per mile.

Annual Costs:

• Nissan Leaf: $705
• Toyota Corolla Hatchback: $1,500

Full-Size Pickup: Ford F-150 Lightning vs. Ford F-150

The Ford F-150 Lightning, an electric pickup with a 145 kWh battery, offers a range of 300 miles. Charging at home costs about $24.65, or $0.08 per mile. The traditional Ford F-150 with a 3.3-liter V6 engine achieves about 22 mpg on the highway. To cover 300 miles, it requires about 14.99 gallons of gas, costing $52.47, or $0.17 per mile.

Annual Costs:

• Ford F-150 Lightning: $1,200
• Ford F-150 (Gas): $2,550

Hybrid vs. Electric: Kia Niro EV vs. Kia Niro Hybrid

The Kia Niro EV offers 253 miles of range with its 64.8 kWh battery. A full charge costs about $11.02 at home, resulting in $0.04 per mile. The Kia Niro Hybrid, with an 11.4-gallon tank, has a range of 544 miles. To match the EV's 253 miles, it needs about 5.3 gallons of gas, costing $18.55, or $0.07 per mile.

Annual Costs:

• Kia Niro EV: $600
• Kia Niro Hybrid: $1,050

The Bigger Picture

The larger the vehicle, the more substantial the savings when switching to an EV. For instance, over an average ownership period of 11.8 years, driving an electric Ford F-150 Lightning could save you approximately $15,930 compared to its gas-powered counterpart. Additionally, EVs contribute to lower emissions, reduced environmental impact, and decreased reliance on fossil fuels.

Conclusion

Switching to an electric vehicle can offer significant cost savings, especially for larger vehicles. While the initial purchase price might be higher, the reduced fuel and maintenance costs can make up the difference over time. Before making a decision, consider your driving habits, local electricity rates, and the availability of home charging solutions. The move to electric isn't just a financial choice; it's an investment in a more sustainable future.