The Cost of Owning an Electric Vehicle vs. Gas-Powered Vehicle Over 7 Years
In a recent report by Atlas Public Policy, it has been revealed that the cost of owning an electric vehicle (EV) over a 7-year period can be more economical than that of a gas-powered vehicle, depending on the type of vehicle chosen. The report highlights the potential savings that can be achieved by opting for an EV over a traditional internal combustion engine vehicle.
According to the report, the amount of savings varies depending on the type of vehicle chosen. For example, choosing a Chevrolet Bolt EUV over a Toyota Corolla can result in net savings of approximately $10,581 over 7 years. Similarly, opting for a Tesla Model Y instead of a Toyota Highlander can lead to savings of about $4,361.
However, in the sedan category, the cost of owning an electric vehicle is not necessarily cheaper than that of a gas-powered vehicle. For instance, the cost of owning a Tesla Model 3 over 7 years is estimated to be around $44,180, which is not significantly lower than the projected $44,307 for a Toyota Camry SE Nightshade. This is primarily due to the higher initial cost of the EV and its lower resale value compared to the Camry.
Nonetheless, if the Model 3 becomes eligible for a federal EV tax credit of $7,500, reducing its initial price for the customer, it would become 17% cheaper to own over 7 years than its Toyota counterpart, the report noted.
The report’s findings are significant, especially considering that over 90% of American households own at least one car, as per the U.S. Census Bureau. The potential for significant savings over a 7-year period could be a strong incentive for many households to consider switching to EVs.
Despite the higher average price of an EV compared to an internal combustion vehicle, the report suggests that owning an electric compact sedan, SUV, or pickup truck can lead to better savings due to lower fuel, maintenance, and repair costs. For example, owning a Bolt EUV over a Corolla LE could cost 25% less over seven years. Similarly, despite the significantly higher starting price of the Tesla Model Y compared to the Toyota Highlander L, the cost of ownership is still 9% lower due to better fuel savings.
In conclusion, the report highlights the potential cost savings of owning an electric vehicle over a 7-year period compared to a gas-powered vehicle. With the increasing popularity and affordability of EVs, more households may consider making the switch to electric vehicles to take advantage of the long-term cost benefits.
