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

The study finds that in most U.S. states, financing and owning an EV is cheaper on a monthly basis than an equivalent gasoline car, despite higher sticker prices. This advantage is heavily dependent on the $7,500 federal tax credit; without it, most EVs become more expensive during the loan repayment period. The research highlights that while total cost of ownership (TCO) is significantly lower for EVs over a vehicle's lifetime, consumers are often deterred by upfront costs. Increasing the federal tax credit to $10,000 would make EVs cheaper in nearly every state-vehicle comparison evaluated.

• In most U.S. states, the monthly cost of financing and owning an EV is lower than that of an equivalent gasoline vehicle, even when the initial purchase price is higher.
• Specific vehicle models show varying levels of monthly affordability: the Hyundai Kona SEL and Ford F-150 EV versions were cheaper per month in every state, while the Kia Niro EV was only cheaper in a few states due to the high fuel efficiency of its hybrid gasoline counterpart.
• The $7,500 federal tax credit is essential for making EVs cheaper during the loan repayment period; without it, most evaluated models would be more expensive monthly than gasoline cars.
• Increasing the federal tax credit to $10,000 would significantly improve the economics of EV ownership, making them cheaper in nearly every state-vehicle comparison.
• EVs offer significantly lower total cost of ownership (TCO) over their lifetime compared to gasoline cars, with average lifetime savings of $6,000.
• Monthly savings for EV owners increase dramatically once the vehicle loan is fully repaid, with some state-vehicle combinations saving up to $3,000 per year.

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} }