MOST ELECTRIC VEHICLES ARE CHEAPER TO OWN OFF THE LOT THAN GAS CARS

This report by Energy Innovation analyzes the monthly ownership costs of electric vehicles (EVs) compared to gasoline equivalents in the United States. It finds that for many models and states, EVs are cheaper to own on a monthly basis from the start of the loan term, primarily due to fuel and maintenance savings, provided the $7,500 federal tax credit is available.

• In most U.S. states, financing and owning an electric vehicle (EV) is cheaper on a monthly basis than owning an equivalent gasoline car, even when the sticker price is higher.
• The economic advantage of EVs varies by model; for the Ford F-150 and Hyundai Kona SEL, the EV version was cheaper per month in every single state. Conversely, the Kia Niro EV was only cheaper in a few states because the hybrid gasoline version has high fuel efficiency (50 mpg).
• The $7,500 federal tax credit is essential for making EVs cheaper during the loan repayment period. Without it, most EV models become more expensive monthly than gasoline cars, although their total cost of ownership (TCO) and operating costs remain lower.
• Increasing the federal tax credit to $10,000 would make EVs cheaper in nearly every state-vehicle comparison, with only the Kia Niro remaining non-economic in three states due to the high efficiency of its gasoline version.
• EVs offer significant long-term savings over their lifetime. The report estimates that EV owners save an average of $6,000 over the vehicle's lifetime, with monthly savings increasing dramatically once the vehicle loan is repaid.
• Operating costs for EVs are lower than for gasoline cars, with maintenance costs estimated at $0.061 per mile for EVs compared to $0.101 per mile for gasoline vehicles, representing a reduction of roughly 40%.

APA

ORVIS, R. (2022). MOST ELECTRIC VEHICLES ARE CHEAPER TO OWN OFF THE LOT THAN GAS CARS. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Most-Electric-Vehicles-Are-Cheaper-Off-The-Lot-Than-Gas-Cars.pdf

Chicago

ORVIS, ROBBIE. MOST ELECTRIC VEHICLES ARE CHEAPER TO OWN OFF THE LOT THAN GAS CARS. Energy Innovation, 2022. https://energyinnovation.org/wp-content/uploads/Most-Electric-Vehicles-Are-Cheaper-Off-The-Lot-Than-Gas-Cars.pdf.

Wikipedia

{{cite report |last1=ORVIS |first1=ROBBIE |title=MOST ELECTRIC VEHICLES ARE CHEAPER TO OWN OFF THE LOT THAN GAS CARS |publisher=Energy Innovation |date=May 2022 |url=https://energyinnovation.org/wp-content/uploads/Most-Electric-Vehicles-Are-Cheaper-Off-The-Lot-Than-Gas-Cars.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{orvis2022most, author = {ORVIS, ROBBIE}, title = {{MOST ELECTRIC VEHICLES ARE CHEAPER TO OWN OFF THE LOT THAN GAS CARS}}, institution = {Energy Innovation}, year = {2022}, month = may, url = {https://energyinnovation.org/wp-content/uploads/Most-Electric-Vehicles-Are-Cheaper-Off-The-Lot-Than-Gas-Cars.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }