Electric Car vs Gas Car: The True 5-Year Cost Comparison
EVs cost more upfront but less to operate. Here is the complete 5-year cost breakdown.
Upfront: Average EV purchase price $45,000 (minus $7,500 federal tax credit = $37,500 effective). Average comparable gas car: $35,000. The EV costs $2,500 more after the credit. Now the operating costs flip.
5-Year Operating Costs
Fuel: EV charging at home costs about $0.04/mile. Gas at $3.50 and 28 MPG costs $0.125/mile. Over 60,000 miles (12,000/year × 5): EV $2,400, Gas $7,500. Savings: $5,100. Maintenance: EVs have no oil changes, no transmission service, fewer brake replacements (regenerative braking). 5-year EV maintenance: $1,500-2,500. Gas car: $4,000-6,000. Savings: $2,000-3,500. Insurance: EVs cost 15-25% more to insure ($500-1,000 more over 5 years).
5-Year Total Cost of Ownership
EV: $37,500 + $2,400 fuel + $2,000 maintenance + $6,000 insurance - $15,000 resale = $32,900. Gas: $35,000 + $7,500 fuel + $5,000 maintenance + $5,000 insurance - $14,000 resale = $38,500. The EV saves approximately $5,600 over 5 years despite the higher purchase price. The savings grow with higher gas prices and mileage.