In a recent report, it was revealed that the cost of owning an electric vehicle (EV) for a period of 7 years can be cheaper than that of a gas-powered vehicle, depending on the type of vehicle.
What happened: A recent report by Atlas Public Policy demonstrated that the cost of owning an electric vehicle over a 7-year period can be significantly lower than that of a gas-powered vehicle. However, the amount of savings depends on the type of vehicle.
For example, choosing a Chevrolet Bolt EUV on a Toyota Corolla can result in a net savings of approximately $10,581 over 7 years. Likewise, opting for a Tesla Model Y instead of a Toyota Highlander can lead to savings of approximately $4,361.
However, in the sedan category, the cost of owning an electric vehicle is not necessarily cheaper than that of a gas-powered vehicle. For example, the cost of owning a Tesla model 3 over 7 years is estimated at approximately $44,180, which is not significantly less than the expected $44,307 for a Toyota Camry SE Nightshade. This is mainly due to the EV’s higher initial cost and its lower resale value compared to the Camry.
However, if the Model 3 were eligible for a $7,500 federal EV tax credit, reducing its initial price to the customer, it would become 17% cheaper to own over 7 years than its Toyota counterpart, notes the relationship.
| type of vehicle | Vehicle with internal combustion engine | Electric vehicle | Net savings with an electric vehicle In 7 years |
| Compact Sedan |
Toyota Corolla LE | Chevrolet Bolt EUV | $10,581 |
| Sedan | Toyota Camry SE Pretty Woman |
Tesla model 3 | $127 |
| Compact SUVs |
Nissan Rogue SV | VolkswagenID.4 | $7,099 |
| Medium size SUVs |
Toyota Highlander L | Tesla Model Y | $4,361 |
| Collection Truck |
Ford F-150XL Supercrew |
Ford F-150 Lightning | $2,825 |
Because matter: The report’s findings are significant, especially when you consider that, according to the US Census Bureau, more than 90% of American households own at least one car. The potential for significant savings over a 7-year period could represent a strong incentive for many families to consider switching to electric vehicles.
Despite the higher average price of an electric vehicle compared to an internal combustion vehicle, the report suggests that owning an electric compact sedan, SUV or pickup truck can lead to greater savings through lower fuel, maintenance and repair costs. For example, owning a Bolt EUV versus a Corolla LE could cost 25% less over seven years. Likewise, despite the significantly higher starting price of the Tesla Model Y compared to the Toyota Highlander L, the cost of ownership is still 9% lower thanks to improved fuel economy.
See more of Benzinga’s Future of Mobility coverage from by following this link.
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