Summary
- Electric vehicles (EVs) have the lowest fuel and maintenance costs in the United States compared to hybrid and gasoline vehicles
- AAA study shows EVs have high depreciation and insurance costs, balancing out the initial savings in fuel and maintenance
- Bigger EVs are the most affordable vehicles to own on a cost-per-year basis
- The average operating cost for the whole industry is $12,297 per year, with EVs averaging $12,704 per year
- Depending on location and specific circumstances, owning an EV may be more cost-effective than a hybrid or gas car
Article
The AAA study shows that electric vehicles have the lowest fuel and maintenance costs in the United States compared to hybrid and gasoline vehicles. However, depreciation and insurance costs are among the highest. The study looked at the best-selling models in each category and noted average costs for fuel, maintenance, depreciation, full-coverage insurance, license and registration fees, and finance charges. The information is based on a yearly driving distance of 15,000 miles and a total ownership period of five years or 75,000 miles.
Electric vehicles have an average operating cost of $12,704 per year, according to the AAA study. In comparison, hybrids came out at $9,910, mid-size gas pickups were at $12,366, and half-ton crew-cab gas pickups topped the chart with the highest yearly operating cost of $16,453 when driving 15,000 miles per year. Bigger EVs have lower average ownership costs, with pickups being the least expensive vehicles to own at $15,698 per year compared to hybrids at $15,971 and gas models at $16,453. Depending on where you live, you may experience higher or lower costs with an EV based on electricity prices.
In some places, energy prices may be much lower than gas, which can bring down the yearly cost of owning an EV. Additionally, some EV owners may have photovoltaic panels installed at home, which significantly reduces fuel costs. This advantage cannot be applied to gas or hybrid cars. When looking at a medium sedan, going electric may be more expensive than choosing a hybrid or gas model, with a yearly cost of $12,527. The gasoline alternative is $2,000 cheaper per year, while the hybrid is about $3,000 less.
In the compact SUV segment, EVs may have similar yearly operating costs as hybrids. However, in the medium SUV segment, EVs come out on top as the least expensive vehicles to own. Real-world costs may vary based on electricity and gasoline prices in your area. It’s essential to do your research before deciding whether an EV, hybrid, or gas vehicle is the best choice for your situation. Overall, EVs offer the lowest fuel and maintenance costs but may have higher depreciation and insurance expenses compared to other types of vehicles.
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