The shift to electric vehicles (EVs) is gaining momentum as more consumers seek environmentally friendly alternatives to traditional gas-powered cars. But when it comes to purchasing an EV, one of the primary concerns is cost. While EVs are often seen as more expensive upfront, many buyers are drawn to their potential long-term savings. So, how much does it really cost to own an electric vehicle compared to a gas car?
In this article, we’ll break down the costs of owning both types of vehicles and help you understand the financial implications of making the switch to an EV. From purchase price to maintenance and fuel costs, we’ll give you the full picture so you can make an informed decision.
1. Purchase Price
One of the biggest differences between electric vehicles and gasoline cars is the initial purchase price. While the gap has narrowed in recent years, EVs generally cost more than their gas counterparts. The difference can be attributed to the higher cost of batteries, which make up a significant portion of an electric vehicle’s overall cost.
Electric Vehicle Prices
As of 2025, EV prices typically start around $30,000 for entry-level models like the Nissan Leaf or Chevrolet Bolt. Luxury EVs, such as the Tesla Model S or Audi e-tron, can cost upwards of $60,000 to $100,000 or more, depending on the model and features.
Gas Car Prices
In contrast, gas-powered cars can range widely in price, from affordable models starting around $20,000 to luxury cars that can cost upwards of $80,000. Generally, gas vehicles tend to have a lower starting price than electric vehicles of similar size and features.
Government Incentives
The good news for potential EV buyers is that many governments offer incentives to help lower the upfront cost. In the U.S., for example, you can qualify for federal tax credits of up to $7,500, and many states offer additional rebates. These incentives can significantly reduce the gap in purchase prices between EVs and gas cars.
Conclusion on Purchase Price
While the initial cost of an electric car may still be higher than a gas car, tax incentives and the lower cost of operating an EV can help offset this difference over time.
2. Fuel and Charging Costs
The ongoing cost of fueling a vehicle is another major factor in ownership costs. Gas-powered cars rely on gasoline, while electric cars depend on electricity for charging. Let’s break down the costs for each.
Fuel Costs for Gas Cars
Gas prices can fluctuate based on location, season, and market conditions, but the average price for regular unleaded gas in the U.S. in 2025 is around $3.50 per gallon. The fuel efficiency of gas cars varies, but a typical compact car gets around 30 miles per gallon.
- Cost Per Mile: If you drive 12,000 miles per year in a gas car that gets 30 miles per gallon, you’ll need approximately 400 gallons of gas annually. At $3.50 per gallon, that adds up to $1,400 per year.
Charging Costs for EVs
Electricity costs vary by location, but on average, the cost of electricity in the U.S. is about $0.13 per kWh. The average electric car consumes about 0.3 kWh per mile, meaning that it will cost around $0.039 per mile to drive.
- Cost Per Mile: Driving 12,000 miles annually in an EV would cost around $468 in electricity costs, a fraction of what you would spend on gas for a similar distance.
Public Charging
While home charging is the most cost-effective way to charge your EV, public charging stations can also add to your costs. Fast-charging stations tend to charge higher rates, but even then, EV owners still pay significantly less for charging compared to gasoline.
Conclusion on Fuel Costs
When comparing the two, it’s clear that EVs are much cheaper to fuel than gas cars. Over the course of a year, the savings can be significant, with an average EV owner spending less than a third of what they would spend on fuel in a gas-powered vehicle.
3. Maintenance and Repair Costs
Another major factor in the overall cost of ownership is maintenance. Gas vehicles have more moving parts and require regular servicing, including oil changes, exhaust system repairs, and engine-related maintenance. Electric vehicles, on the other hand, have fewer moving parts and require much less maintenance.
Maintenance for Gas Cars
- Oil Changes: Every 3,000 to 7,000 miles, you’ll need an oil change, which can cost anywhere from $30 to $100 each time.
- Other Costs: Gas cars also require regular replacement of parts such as spark plugs, timing belts, air filters, and the exhaust system. These repairs and replacements can add up over time.
Maintenance for Electric Cars
- No Oil Changes: Since EVs don’t have internal combustion engines, there’s no need for oil changes.
- Fewer Moving Parts: Electric vehicles generally require fewer repairs and less maintenance overall. They don’t need exhaust systems, and their brake pads last longer due to regenerative braking. However, the main component to watch out for is the battery.
Battery Replacement Costs
While electric vehicles require less maintenance overall, the battery can be an expensive part to replace. Battery costs have been dropping, but replacing a battery can still cost between $5,000 to $15,000, depending on the make and model of the car. However, most EV batteries are covered by warranties that last 8 to 10 years, and the battery will typically last that long.
Conclusion on Maintenance
EVs generally have lower maintenance costs than gas cars, primarily due to fewer moving parts. The major exception is battery replacement, but this cost is often covered by warranties for most new EVs.
4. Depreciation
Depreciation refers to the loss in value of a vehicle over time, and both electric and gas-powered cars experience depreciation. However, electric vehicles have historically depreciated faster than gasoline cars, primarily due to concerns about battery life and technology advancements.
Depreciation for Gas Cars
Gas vehicles tend to depreciate steadily over time, with typical depreciation rates of 15% to 20% per year for the first few years. Popular models from established manufacturers tend to retain their value better than others.
Depreciation for Electric Cars
Electric cars also depreciate, but their resale value can be more volatile. Early EV models, such as the Nissan Leaf, saw steep depreciation due to battery concerns and the rapid advancement of technology. However, newer models from brands like Tesla are holding their value better due to increased demand for EVs and longer battery lifespans.
Conclusion on Depreciation
While electric cars may still experience faster depreciation than gas cars in some cases, the gap is closing as demand for EVs increases and technology improves. Over time, as EVs become more mainstream, their resale value is expected to stabilize.
5. Incentives and Tax Credits
One of the key factors in reducing the cost of owning an electric vehicle is the availability of government incentives. These can help lower the upfront cost of the car and, in some cases, offset long-term expenses.
Electric Vehicle Incentives
In the U.S., buyers of electric cars can take advantage of federal tax credits, which can range up to $7,500, depending on the make and model of the vehicle. Many states also offer additional incentives, such as rebates, tax credits, and access to carpool lanes.
Gas Car Incentives
There are fewer incentives for purchasing gas-powered cars, although some states may offer tax credits for purchasing fuel-efficient vehicles.
Conclusion on Incentives
The incentives available for electric cars can significantly reduce the overall cost of ownership, making EVs more affordable in the long run.
Conclusion: Which Is More Expensive to Own?
While the upfront cost of an electric vehicle is generally higher than that of a gasoline car, the overall cost of ownership is often lower over time. EVs offer savings in fuel costs, maintenance, and repair expenses, and with government incentives, the gap in purchase price has narrowed. Additionally, as EV technology continues to evolve and battery costs decrease, owning an electric car will likely become even more cost-effective compared to traditional vehicles.
Ultimately, the decision to buy an EV or a gas-powered car depends on your driving habits, budget, and long-term goals. But if you’re looking to reduce long-term expenses while contributing to a greener planet, an electric vehicle is certainly worth considering.