Although cost remains an issue, buyers of new EVs are paying a lower premium over conventional gas-only cars than in the past, according to data from Cox Automotive. In February, the average new EV sold for $55,300, which is about $6,500 more than the average new gas-powered vehicle and the lowest premium on record. Large automaker rebates are common (see the best deals on EVs), and some used EVs are actually selling for less than their gas-powered equivalents.
The cost of charging an EV is almost always hundreds of dollars less per year than the fuel costs for a similar gas-powered vehicle. But exactly how much can vary widely depending on the electricity rates and gas prices where you live. For example, electricity can cost twice as much per kilowatt-hour (kWh) in Connecticut as it does in Oregon. (Compare costs in your area using the free calculator in our EV buying guide.)
“Depending on local gas and electricity costs, hybrids might make better financial sense than EVs for some buyers, especially because many have outstanding long-term reliability,” Fisher says. For example, if you live somewhere with high gas prices and low electricity costs, such as the West Coast, an EV will almost always be less expensive to run than a conventional car or hybrid. But in New England, where gas prices are lower and electricity prices are generally higher than out West, those savings may be negligible and could even tilt the balance in favor of a gas-electric hybrid with a lower purchase price.
In addition, EVs depreciate more rapidly than gas or hybrid cars, which could negate some savings on energy costs. “For the most savings, look for a reliable used EV that’s already depreciated significantly but is still under warranty,” says Fisher.
Consumer Reports has anonymously purchased and tested over 50 of the most popular EVs on the market, plugging them in at home and on the road, so we know what it’s like to trade a gas pump for a charger. To help you better understand the potential costs and savings of an EV, CR will walk you through how to shop for one while saving money at each step.
