Everyone's got an opinion on EVs. "They're the future!" "The range is terrible!" "You'll save thousands!" "What about the battery replacement?" Let's skip the opinions and just run the numbers.
We're comparing two similar cars over 5 years of ownership with 12,000 miles driven per year.
The Matchup
🔋 Electric Vehicle
Mid-range EV sedan (think Tesla Model 3 / Hyundai Ioniq 6 class)
MSRP: ~$40,000
Efficiency: 3.5 miles per kWh
Electricity cost: $0.14/kWh average
⛽ Gas Vehicle
Comparable gas sedan (think Honda Accord / Toyota Camry class)
MSRP: ~$32,000
Fuel economy: 32 MPG combined
Gas cost: $3.30/gallon average
1. Fuel Costs (The EV's Biggest Advantage)
This is where EVs destroy gas cars, and it's not even close.
Gas car: 12,000 miles ÷ 32 MPG = 375 gallons × $3.30 = $1,238/year
EV: 12,000 miles ÷ 3.5 mi/kWh = 3,429 kWh × $0.14 = $480/year
Annual fuel savings: $758
5-year fuel savings: $3,790
And if you charge during off-peak hours or have solar panels, the EV cost drops even further. Some EV owners pay under $300/year for "fuel."
2. Maintenance (EV Wins Again)
EVs have far fewer moving parts than gas cars — no engine oil, no transmission fluid, no spark plugs, no exhaust system, no timing belt.
Gas car annual maintenance: ~$800-1,200/year (oil changes, brake pads, transmission service, spark plugs, belts, filters)
EV annual maintenance: ~$400-600/year (tire rotation, cabin air filter, brake fluid, wiper blades — that's basically it)
EV brakes also last longer thanks to regenerative braking, which uses the motor to slow down instead of friction pads.
5-year maintenance savings: ~$2,000-3,000
3. Insurance (Gas Car Wins)
This is one area where gas cars come out ahead. EVs cost more to insure because they're more expensive to repair — specialized parts, fewer repair shops, and battery-related damage can be costly.
Gas car insurance: ~$1,600/year
EV insurance: ~$2,000/year
5-year difference: EV costs ~$2,000 more
4. Depreciation (The Hidden Cost)
This is the biggest cost of car ownership that nobody talks about. All cars lose value, but the rates differ.
Gas car: Loses about 40-45% of value in 5 years. A $32,000 car is worth ~$17,600.
EV: Depreciation has improved significantly as the market matures. A $40,000 EV after 5 years is worth ~$20,000-22,000 (depending on battery health and model).
Gas car 5-year depreciation: ~$14,400
EV 5-year depreciation: ~$18,000-20,000
5. Tax Credits (EV's Ace Card)
The federal EV tax credit of up to $7,500 dramatically changes the math. Not all EVs qualify, and income limits apply, but if you're eligible:
That $40,000 EV effectively costs $32,500 — bringing it close to the gas car's sticker price. Some states offer additional credits of $1,000-5,000.
The 5-Year Total Cost Comparison
📊 5-Year Cost Summary
| Category | Gas Car | EV |
|---|---|---|
| Purchase Price | $32,000 | $40,000 |
| Federal Tax Credit | $0 | -$7,500 |
| Fuel (5 years) | $6,190 | $2,400 |
| Maintenance (5 years) | $5,000 | $2,500 |
| Insurance (5 years) | $8,000 | $10,000 |
| Resale Value (5 years) | -$17,600 | -$21,000 |
| Total 5-Year Cost | $33,590 | $26,400 |
* EV saves approximately $7,190 over 5 years with the tax credit. Without the tax credit, savings are closer to $0-700.
The Verdict
With the tax credit: The EV is significantly cheaper over 5 years. The higher purchase price is more than offset by fuel savings, lower maintenance, and the tax credit.
Without the tax credit: It's essentially a wash. The gas car costs slightly less upfront, but the EV's lower running costs even things out over 5 years.
The breakeven point: Even without credits, if gas prices rise above $4/gallon or you drive more than 15,000 miles/year, the EV pulls ahead faster.
Run Your Own Numbers
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Check →The bottom line: EVs are genuinely cheaper to own if you qualify for the tax credit and plan to keep the car 5+ years. Without the credit, it's a lifestyle choice more than a financial one. Either way, crunch your own numbers — your situation is unique.