Electric cars aren?t just cheaper over the long term but have cheaper total monthly cost from day one for most buyers in the United States, according to a new report from Energy Innovation.
A common refrain from new car buyers is that they?d like to buy electric, but they can?t justify the higher initial price. We have known for a long time that total cost of ownership for an EV is generally cheaper than that of a gas car, but consumers typically put more importance on initial purchase price rather than actual costs. The report states that half of Americans think EVs are ?too expensive to seriously consider.?
This analysis expands on the total cost of ownership calculation ? rather than looking at the entire average 12-year period of car ownership, it looks at monthly costs over the length of a six-year financing term. Since 85% of cars in the United States are financed at purchase, this is a more realistic way to view costs than by looking at the sticker price.
Energy Innovation?s analysis looks at EV vs. gas vehicle costs in every state and includes financing costs, fuel (based on average fuel costs as of May 4 and average electricity costs), maintenance, insurance, EV incentives, and even dumb EV fees that some states have implemented. They looked at six vehicles with similar gas and electric versions, and tried to pick similar option levels as well:
Hyundai Kona SEL vs. Hyundai Kona Electric SEL
Hyundai Kona Limited vs. Hyundai Kona Electric Limited
Ford F-150 XL vs. Ford F-150 Lightning Pro
Kia Niro EX Premium vs. Kia Niro EV EX Premium
Volvo XC40 Inscription vs. Volvo XC40 Recharge Plus
Nissan Versa S Xtronic CVT vs. Nissan LEAF
The analysis notes that these aren?t direct comparisons ? many EVs have more features at ?base? option level than gas versions of cars do ? but they?re the closest they could get. For example, the LEAF is a good car, and the Versa ? just isn?t.
When comparing all of these costs for each vehicle and each state, the report found that for most cars and most states, the EV is cheaper on a monthly cost basis: