The Surprising Math Behind EV Costs

Are Electric Cars Cheaper Than Gas Cars?

For years, electric cars (EVs) have been marketed as the cleaner, smarter alternative to gas-powered vehicles. But beyond being better for the planet, there’s one question a lot of drivers want answered: Are EVs actually cheaper than gas cars?

The short answer? It depends. While electric cars often come with a higher sticker price, they can save you money over time—if you play your cards right.

Let’s break it down.

The Upfront Cost: EVs Start Higher

Walk into a dealership, and you’ll probably notice that electric cars have a steeper upfront cost. According to Kelley Blue Book, the average EV sells for around $53,000, while the average gas-powered car lands closer to $48,000.

That gap has shrunk in recent years, thanks to more competition and cheaper battery tech, but it’s still there. And if you’re shopping on a tight budget, that difference can be a dealbreaker.

However, the government is trying to sweeten the deal. Federal tax credits of up to $7,500—and additional state incentives in some places—can help bring EV prices down. But not every model qualifies, and the fine print can get tricky.

Charging vs. Fuel: EVs Win on Energy

This is where EVs shine.

According to the U.S. Department of Energy, powering your car with electricity is generally cheaper than filling up at the pump. On average, charging an EV costs about half as much per mile as fueling a gas car.

Here’s an example:

• Charging an EV might cost you around $500–$600 a year, depending on where you live and how much you drive.
• A gas car doing the same mileage could cost you $1,000–$2,000 annually in fuel.

And if you charge at home with solar panels? Even better.

Maintenance: Fewer Moving Parts, Fewer Headaches

Electric vehicles have fewer parts that can break. There’s no oil to change, no exhaust system to rust, and no spark plugs to replace. That translates to lower maintenance costs over time.

A study by Consumer Reports found that EV owners can expect to save about $4,600 on maintenance and repairs over the life of the vehicle compared to gas-powered models.

Of course, that doesn’t mean EVs are maintenance-free. Battery replacement—though rare—is expensive. But most EV batteries are designed to last 8–10 years or more, and many come with warranties to match.

Resale Value: Still a Work in Progress

Resale value used to be a weak spot for electric cars. Older EVs lost value quickly, mostly because tech moved fast and early models had short range.

But as EVs have improved, so has their staying power. Brands like Tesla and Rivian tend to hold value well, though mainstream models like the Nissan Leaf still depreciate faster than gas cars.

Also worth noting: gas cars still dominate the used car market. So if you’re planning to sell or trade in your ride after a few years, it’s something to factor in.

The Bottom Line

Are electric cars cheaper than gas cars? Over time, they can be. You’ll likely pay more upfront, but lower fuel and maintenance costs can tip the scales in your favor—especially if you plan to keep the car for several years.

But the answer really depends on your situation:

• If you drive a lot, live somewhere with high gas prices, and can charge at home, an EV could save you thousands.
• If you’re on a tight budget and need a reliable used car, gas might still be the better fit—for now.

Either way, the gap is closing. And as battery costs drop and EV options expand, owning an electric car is starting to look a lot more like a smart financial move, not just a green one.