Electric vehicles often have a higher sticker price than comparable gas cars, which leads many buyers to assume they're more expensive overall. But the full picture looks very different when you account for fuel savings, lower maintenance costs, and available tax credits. Here's an honest breakdown.
Purchase Price & Tax Credits
The average new EV in the US costs around $50,000–$55,000, while the average new gas car runs about $45,000. That's a roughly $5,000–$10,000 gap at purchase — but the federal EV tax credit changes the math significantly.
Under the Inflation Reduction Act, eligible new EVs qualify for up to $7,500 in federal tax credits, and used EVs qualify for up to $4,000. Income limits apply (single filers under $150,000, joint filers under $300,000), and the vehicle must meet North American assembly and battery sourcing requirements. Check fueleconomy.gov for the current list of eligible models.
Fuel Costs: A Major Advantage for EVs
This is where EVs pull decisively ahead. Charging an EV costs roughly $0.03–0.05 per mile at average US electricity rates, compared to $0.12–0.16 per mile for gas at current prices. For a driver covering 12,000 miles per year:
- EV fuel cost: ~$480–$600/year
- Gas car fuel cost: ~$1,440–$1,920/year
That's a savings of roughly $1,000–$1,300 per year on fuel alone. Over five years: $5,000–$6,500 saved.
Maintenance: EVs Cost Significantly Less
EVs have far fewer moving parts than gas cars — no oil changes, no transmission fluid, no spark plugs, no exhaust system, fewer brake jobs (regenerative braking extends brake life dramatically). Studies consistently find EV maintenance costs 30–40% lower than gas cars.
Average 5-year maintenance costs:
- Gas car: ~$4,500–$6,000
- EV: ~$2,500–$3,500
Insurance
EV insurance is currently 10–20% higher than comparable gas cars due to higher repair costs (specialized technicians, expensive battery components). This gap is narrowing as EV repair infrastructure matures. Budget roughly $150–$300 more per year for EV insurance, or about $750–$1,500 over five years.
Depreciation
Depreciation is the largest cost of car ownership for most buyers. Historically, EVs depreciated faster than gas cars due to battery range anxiety and rapidly improving technology. The gap has narrowed considerably as EVs have become mainstream. Today, popular EVs like the Tesla Model 3 and Chevy Equinox EV hold value comparably to equivalent gas vehicles.
5-Year Total Cost Summary
For a typical buyer driving 12,000 miles/year, comparing a $52,000 EV (after $7,500 credit: $44,500) vs a $45,000 gas car:
- Purchase price advantage: EV by ~$500 after credit
- Fuel savings over 5 years: EV saves ~$5,500
- Maintenance savings over 5 years: EV saves ~$2,000
- Insurance premium over 5 years: EV costs ~$1,000 more
- Net 5-year advantage for EV: ~$7,000
The EV wins on total cost of ownership for most buyers — and that's before accounting for the environmental benefits.
The Carbon Picture
Beyond costs, EVs produce significantly fewer lifetime carbon emissions than gas cars — typically 50–70% less when charged on the average US grid, and approaching zero in states with clean electricity grids like California, Washington, or New York. Use our Car vs EV Carbon Calculator to see the emissions comparison for your specific situation.
When a Gas Car Still Makes Sense
EVs aren't for everyone. If you regularly drive long distances without access to fast charging, live in an apartment without charging access, or need a vehicle type (certain trucks, work vehicles) where EV options are still limited, a gas car may be the more practical choice today. The market is changing rapidly, but range and charging infrastructure remain real considerations for some buyers.