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THE $7,500 off you used to keep going electric vehicles is officially gone. Now that the federal discount is gone, the fundamental question remains: Is it really cheaper to forgo electric vehicles and stick with a gas-powered car? We made it our mission to find out.
Total cost of ownership is the only calculation that matters when purchasing a vehicle. This total cost of ownership includes everything from maintenance and depreciation to fuel costs, and this is exactly where electric vehicles continue to make progress.
According to automotive experts, when you consider the whole picture, electric vehicles are generally the cheapest option in the long run. We’ve done the math to show you exactly how the costs break down so you can make a smart comparison before your next big purchase.
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Comparing the Upfront Costs of an Electric, Hybrid, and Gasoline Car
The sticker price is what most people think of when comparing prices of different cars. From this perspective, the disappearance of the $7,500 federal electric vehicle tax credit puts electric vehicles at a significant disadvantage in terms of upfront costs compared to gasoline cars or passive hybrid cars.
When it comes to upfront costs, we’ve identified the winner, loser, and runner-up.
|
Winner 🏆 |
Internal combustion engine vehicles |
Traditional gasoline cars generally have the lowest price compared to their electrified counterparts. These types of vehicles have long-established supply chains and economies of scale that make them cheaper to manufacture, according to Antuan GoodwinCNET Senior EV Editor. |
|
Finalist 🥈 |
Hybrid vehicles |
Hybrid-electric vehicles often have a slight premium over pure gas cars due to the dual gas and electric powertrains, but are generally still more affordable than most pure electric vehicles. |
|
Loser 💸 |
Electric vehicles |
Electric cars are generally at the high end in terms of selling price. “The battery will be the main reason why electric vehicles are more expensive,” says Goodwin. Electric vehicles also don’t benefit as much from economies of scale. Additionally, consumers continue to subsidize the research and development that traditional automakers do to design electric cars, according to Amelia Dalgaard, an automotive expert known online as Motorhead Mom. |
Comparison of fuel and charging costs
You can’t control gas prices, but you can control how much you spend to fill up.
This is where we start to see some of the biggest savings between electric vehicles and gasoline vehicles. Here is how the costs evolve:
|
Winner 🏆 |
Electric vehicles |
The cost of charging an electric vehicle depends largely on your local electricity rates and where you charge your vehicle. Charging at home with a Level 2 charger is generally the cheapest way to fuel your electric vehicle, while public Level 3 fast chargers are generally the most expensive. Generally speaking, charging an electric vehicle at home costs less than filling up with gas in a comparable car, according to Goodwin and Dalgaard. For that average of 11,000 miles per year, at the national average electricity rate, you would spend $550 on charging. |
|
Finalist 🥈 |
Hybrid vehicles |
Fuel costs for passive hybrids are generally lower than regular gasoline cars because their overall gas mileage is better. Some models, like the Toyota Priusget an average of 54 miles per gallon. So while their initial cost may be higher than a pure gasoline car, hybrids have a much lower cost per mile, and therefore lower refueling costs. |
|
Loser 💸 |
Internal combustion engine vehicles |
Gasoline is generally the most expensive way to power a car compared to an electric battery. “Electricity has always been considerably cheaper than gasoline,” says Goodwin. The average gasoline car gets 26 miles per gallon, which translates to an annual fuel cost of $1,320 for the average 11,000 miles driven per year. |
Maintenance and repair costs: less is more
Electric vehicles are also a big winner in terms of lower maintenance costs, which adds nice savings to their total cost of ownership. Here’s how they compare to gasoline cars:
|
Winner 🏆 |
Electric vehicles |
While gasoline engines have many parts that can break, electric powertrains almost never do. “Usually it’s set it and forget it,” says Goodwin. (No oil changes, spark plugs, or exhaust systems here.) This makes maintenance costs for electric vehicles much lower than their gasoline counterparts. That said, electric vehicle tires generally wear out more quickly because the vehicle is heavier. And if you need to make a major repair on an electric vehicle (for example, after a collision), it typically costs more because an electric vehicle’s batteries and technology are expensive to replace. |
|
Finalist 🥈 |
Internal combustion engine vehicles |
Gasoline cars require much more maintenance than electric cars. This is because gas engines have a lot more moving parts and a lot more things that can break, compared to an electric powertrain. Regular oil and fluid changes, as well as replacing brakes and other mechanical parts, can result in significant frequent maintenance costs. |
|
Loser 💸 |
Hybrid vehicles |
Passive hybrid vehicles require essentially the same maintenance as pure gasoline vehicles, but perhaps less often because the engine runs for less time. Meanwhile, plug-in hybrids, which feature both a gasoline engine and a powerful battery-electric powertrain, are basically the worst of both worlds in terms of maintenance costs, Dalgaard says. |
Compare insurance costs
Insurance is another ongoing cost that you simply can’t avoid, but different types of cars can mean your policy prices vary wildly.
Insurance costs vary greatly depending on the type of car you own. Here are the general trends for different vehicles:
|
Winner 🏆 |
Internal combustion engine vehicles |
These are generally the lowest insurance costs because they are cheaper to replace and repair after a collision. |
|
Finalist 🥈 |
Hybrid vehicles |
In general, these cars are more expensive to insure than pure gasoline vehicles because they are more expensive upfront. |
|
Loser 💸 |
Electric vehicles |
These cars are the most expensive to insure because they have the highest sticker price and because components such as batteries are more expensive to replace, according to Goodwin and Dalgaard. |
Depreciation and resale value: the joker
Depreciation – or the loss of value of your vehicle over time – can have a huge impact on your total cost of ownership. In fact, when you sell your car, its residual value can make a big difference in the amount you lose on the transaction.
Here is the breakdown between gasoline and electric cars:
|
Winner 🏆 |
Internal combustion engine vehicles |
Because gas-powered cars have been around for so long, their resale value follows a predictable and well-established depreciation curve. Currently, this generally means that gasoline cars depreciate more slowly than electric cars. |
|
Finalist 🥈 |
Hybrid vehicles |
These cars have traditionally held their value well due to high demand and fuel efficiency. |
|
Loser 💸 |
Electric vehicles |
Historically, electric vehicles have experienced higher and faster depreciation than gasoline vehicles. Part of the reason is that EV technology is improving so quickly (leading to better battery life and faster charging) that older models are becoming undesirable more quickly (much like older models). iPhone Modelssaid Dalgaard). That said, as the electric vehicle market matures, this effect could begin to wane, Goodwin observes, leading to better resale value of electric vehicles. |
The Verdict on Total Cost of Ownership
I compared the total cost of ownership of the same car in its electric and gas models to highlight the differences.
I did the calculation with a real example, comparing an electric and gasoline version of the same car: the new 2026 version of the Chevrolet Equinox.
|
Autofill |
Electric vehicles |
Gasoline vehicles |
|---|---|---|
|
Make/Model/Year |
2026 Chevrolet Equinox EV |
2026 Chevrolet Equinox |
|
MSRP (sticker price) upon purchase |
$36,495 |
$30,495 |
|
Fuel cost/charge |
$0.05 per mile |
$0.12 per mile |
|
Cost of gasoline or electricity |
$0.175 per kWh |
$3.20 per gallon (US average) |
|
Maintenance costs |
6 cents per mile |
10 cents per mile |
|
Cost over 5 years |
$42,792 |
$43,088 |
|
Cost over 10 years |
$49,744 |
$56,994 |
|
Cost over 15 years |
$57,420 |
$72,345 |
Winner: Electric Vehicles 🏆
Loser: internal combustion engine vehicles 💸
Even without the federal government’s $7,500 tax credit, electric vehicles can still have a lower total cost of ownership than cars with internal combustion engines.
“In general, you will be better off with an electric vehicle,” says Dalgaard. Indeed, even though electric vehicles have a higher initial cost, gasoline cars can have fuel costs more than double and significantly higher maintenance costs.
Hybrids, meanwhile, likely have an advantage over vehicles with internal combustion engines (due to improved gas mileage) and offer a good compromise if you’re not ready for an electric vehicle.
The best choice for you will also depend on your driving habits: how long you drive, how long you plan to keep the car and whether you can charge an electric vehicle at home, for example.
“You now have more flexibility to choose a powertrain that’s right for you,” Goodwin says of today’s automotive market.
You must make the calculations yourself using local electricity rates, gas prices and driving habits. It’s complicated, but online calculators like the one from the New York Times can help you make the comparison.
