Electric vs. Gas Cars: True Cost of Ownership Guide

Electric vehicles (EVs) present substantial long-term savings, while gas-powered cars continue to be more affordable at the time of purchase. Below is a detailed breakdown to help determine which option aligns best with your financial and driving needs. Upfront Costs EVs come with an average price tag that is $5,804 higher than traditional gas cars in 2025. However, federal tax credits of up to $7,500 help narrow this initial difference, making EVs more competitive in pricing. Fuel & Charging Expenses The cost of charging an EV at home falls between $500 and $800 per year, depending on electricity rates. In contrast, fueling a gas vehicle costs between $2,000 and $2,220 annually, making EVs significantly more cost-effective in daily operations. Maintenance & Repairs On average, EV maintenance is 31% less expensive than that of gas cars. With fewer moving parts and no need for oil chang...