Electric Vehicles: Cost Savings Over Gasoline-Powered Cars Explained

Electric vehicles (EVs) have become a popular choice for many drivers. Not only do they offer a more environmentally friendly option, but they also have a lower operating cost over the long term. One key aspect of EV cost savings is the reduced expense of maintenance and running compared to traditional gasoline-powered vehicles (ICEs).

Reduced Operating Costs

When driving 100 miles, the cost of electricity is 4 to 5 times lower than the cost of gasoline. Adding to this, EVs have fewer maintenance requirements and are less prone to mechanical failures. This article will explore the cost savings associated with EVs compared to ICEs, using a 2023 Tesla Model Y and a 2023 Toyota Camry as examples.

Comparison of Fuel Costs

To illustrate the comparison, let's assume you have a 2023 Tesla Model Y and a 2023 Toyota Camry. The Camry, an efficient car, gets up to 28 city MPG and 39 highway MPG. However, the US average for all types of cars and driving is a disappointing 25.4 mpg, leading to an average cost of $0.14 per mile.

The Tesla Model Y, on the other hand, consumes 28 kWh per 100 miles, resulting in an official consumption of 0.26 kWh per mile. According to the US Energy Information Administration (EIA), the average cost of electricity in the US is $0.14 per kWh. This makes the cost of driving 1 mile in an EV about $0.036.

Cost Savings Analysis

Basing the cost of driving on actual data, we find that an average gas car costs:

$0.14 per mile for the Toyota Camry (at 25.4 mpg) $0.09 to $0.126 per mile for a more efficient gas car (at 34.7 to 46.3 mpg) $0.036 per mile for a Tesla Model Y (at 26 kWh/100 miles)

Therefore, an electric car is at least 3 times cheaper per mile than a gas car. Moreover, EVs have significantly lower maintenance costs, fewer service requirements, and a longer lifespan.

Comparing Maintenance Costs

Gas cars require regular maintenance such as oil changes, transmission servicing, and brake repairs, which can add several cents per mile to the cost. In contrast, electric cars have fewer moving parts and require minimal maintenance. A 2023 Tesla Model Y, for instance, has never needed servicing. The only maintenance required is changing the 12V battery, which is covered under warranty, and replacing cabin air filters that cost $15 on Amazon.

Gas Car Maintenance: Oil changes (every 3000 to 5000 miles) cost about $100, and brake services (every 30,000 miles) cost around $700, adding $2.3 cents per mile. Electric Car Maintenance: With regenerative braking, EVs use their hydraulic brakes less frequently, reducing the need for brake services and fluid changes. This means maintenance costs are virtually zero, even for Tesla's electrically actuated braking systems.

Battery Depreciation

eV batteries generally last much longer than the vehicle, but there is a depreciation factor to consider. The average lifespan of a gasoline car is between 150,000 and 200,000 miles. In contrast, a Tesla claims that the body and drive train can last a million miles, while batteries last 500,000 to 600,000 miles. For an average driver covering 12,000 miles per year, a car could last 83 years!

For a $35,000 gasoline car, the depreciation cost after 200,000 miles would be about $17 per mile, which is more than the cost of fuel and maintenance. In contrast, an EV's cost per mile, including battery replacement if needed, is far lower.

Conclusion

Overall, electric vehicles offer significant cost savings due to their lower fuel costs, minimal maintenance, and longer lifespans. By opting for an EV, drivers can save hundreds or even thousands of dollars over the years, making it a smart investment.