USED ELECTRIC VEHICLES DELIVER CONSUMER SAVINGS OVER GAS CARS

Analysis of 2017 and 2018 model year non-luxury used electric vehicles (EVs) in California shows that they deliver total ownership savings of $1,100 and $500 respectively over a 5.5-year period compared to similar gas cars. While EVs carry a purchase price premium, this is offset by lower fuel and maintenance costs. The report highlights that targeted incentives, such as the Clean Cars 4 All program's maximum $9,500 rebate, can reduce total ownership costs by nearly 40% for lower-income households. The author recommends expanded EV financing, electricity rate reductions using cap-and-trade revenue, and increased support for charging infrastructure in multi-unit dwellings to ensure an equitable transition.

• Non-luxury used electric vehicles (EVs) provide total ownership savings over comparable gasoline cars, with average savings of $1,100 for model year 2017 and $500 for model year 2018 over a typical five-and-a-half-year ownership period.
• Despite ownership savings, used EVs have a purchase price premium compared to gas cars, which was $1,800 for 2017 models and $2,400 for 2018 models.
• The Clean Cars 4 All program's maximum incentive of $9,500 can reduce the total cost of vehicle ownership by nearly 40% for an average EV owner compared to a similar gasoline-fueled car.
• Implementing a state sales tax waiver for EVs would reduce the average purchase price premium for non-luxury EVs by 63% for 2017 models and 57% for 2018 models.
• Battery pack costs have decreased by 89% in real terms from 2010 to 2020, contributing to the expectation that EV purchase prices will eventually fall below those of conventional vehicles.
• Battery-electric vehicles (BEVs) generally have a lower purchase price premium than plug-in hybrid vehicles (PHVs), partly due to steeper residual value losses for short-range BEVs which benefit the second owner.
• Transportation costs are a significantly higher burden for low-income households, representing 37.4% of expenditures for those earning $22,487 or less per year, compared to 11% for those earning $120,729 or more.
• California's leadership in EV policy has contributed to a significant increase in motor vehicle manufacturing jobs, which have nearly doubled historical levels to over 18,000 jobs.

APA

BUSCH, C. (2021). USED ELECTRIC VEHICLES DELIVER CONSUMER SAVINGS OVER GAS CARS. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Used-Electric-Vehicles-Deliver-Consumer-Savings-Over-Gas-Cars.pdf

Chicago

BUSCH, CHRIS. USED ELECTRIC VEHICLES DELIVER CONSUMER SAVINGS OVER GAS CARS. Energy Innovation, 2021. https://energyinnovation.org/wp-content/uploads/Used-Electric-Vehicles-Deliver-Consumer-Savings-Over-Gas-Cars.pdf.

Wikipedia

{{cite report |last1=BUSCH |first1=CHRIS |title=USED ELECTRIC VEHICLES DELIVER CONSUMER SAVINGS OVER GAS CARS |publisher=Energy Innovation |date=2 June 2021 |url=https://energyinnovation.org/wp-content/uploads/Used-Electric-Vehicles-Deliver-Consumer-Savings-Over-Gas-Cars.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{busch2021used, author = {BUSCH, CHRIS}, title = {{USED ELECTRIC VEHICLES DELIVER CONSUMER SAVINGS OVER GAS CARS}}, institution = {Energy Innovation}, year = {2021}, month = jun, url = {https://energyinnovation.org/wp-content/uploads/Used-Electric-Vehicles-Deliver-Consumer-Savings-Over-Gas-Cars.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }