EV Total Cost of Ownership — Compare EV vs Gas Over 5-10 Years
Compare the full ownership cost of an EV vs gas car — purchase price, fuel, maintenance, insurance, and depreciation.
Electric Vehicle
Gas Vehicle
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Understanding Total Cost of Ownership
The sticker price is only part of the story. Total Cost of Ownership (TCO) includes every cost you'll face over the life of the vehicle: fuel, maintenance, insurance, depreciation, and tax incentives.
EVs typically cost more upfront but save significantly on fuel and maintenance. With federal tax credits up to $7,500 and lower running costs, many EVs reach cost parity with gas cars within 2-3 years.
Frequently Asked Questions
What is total cost of ownership for an EV?
Total cost of ownership (TCO) includes purchase price, fuel costs, maintenance, insurance, depreciation, and any tax credits or incentives. For most EVs, the TCO is $5,000-15,000 less than a comparable gas car over 5 years, despite higher upfront costs.
How much does EV battery replacement cost?
EV battery replacement costs range from $5,000-15,000 depending on the vehicle. However, most EV batteries are warrantied for 8 years/100,000 miles and are expected to last 200,000+ miles. Battery degradation averages only 2-3% per year for modern EVs.
Do electric cars depreciate faster than gas cars?
EVs historically depreciated faster, but the gap is narrowing. Tesla models retain 65-75% of their value after 3 years. Popular models like the Model Y and Hyundai Ioniq 5 now depreciate at similar rates to comparable gas SUVs.
What maintenance costs should I budget for an EV?
Budget approximately $600-900/year for EV maintenance: tire rotations ($50-75 every 6 months), cabin air filter ($30-50 annually), brake fluid check, and windshield wipers. No oil changes, transmission service, or spark plug replacements needed.
How do EV fuel costs compare to gas cars?
EVs cost about $0.04-0.06 per mile to fuel at home charging rates, compared to $0.12-0.20 per mile for gas cars. For a driver doing 12,000 miles/year, that saves $720-1,680 annually in fuel costs alone.