Is it More Cost-Effective to Own an Electric or Hybrid Vehicle Compared to a Gas-Powered One?

When it comes to choosing between an electric vehicle, hybrid vehicle, or a gas-powered car, the question often revolves around cost-effectiveness. This article will explore the long-term costs associated with each option, drawing on specific examples to provide a comprehensive comparison.

Initial Costs and Savings

Let's start by examining the upfront costs and long-term savings of these vehicles. Consider a Tesla Y, which costs about $72,000. According to Tesla, charging the vehicle costs approximately 7 cents per mile. With a Federal rebate of $12,000 and an additional $5,000 in California, the effective purchase price is significantly reduced.

On the other end of the spectrum, a Ford Edge Platinum costs around $41,500. Fuel costs, which include gas and oil changes, total about 12.25 cents per mile at a gas price of $3.00 per gallon.

Long-Term Costs and Savings

The United States Department of Transportation (US DOT) conducted a study and reported that electric vehicles (EVs) cost $22 less to operate per mile than internal combustion engine (ICE) vehicles over 178,000 miles. Using this as a basis, let's calculate the cost per mile for each vehicle:

Tesla Y: $0.22 per mile (12 cents for charging plus 10 cents for other costs) Ford Edge: $0.23 per mile (12.25 cents for fuel) Hyundai Santa Fe Hybrid: $0.27 per mile (12.25 cents for fuel and 15 cents for other costs)

Comparison of Fuel and Maintenance Costs

First, let's break down the fuel and maintenance costs for the Tesla Y and the Ford Edge:

Tesla Y: $0.22 per mile ($7 per charge, 128 full charges at 370 miles per charge) Ford Edge: $0.1225 per mile at $3.00 per gallon of gas

Now, let's consider the specific example of a purchase made in 2017, when electrification was more cost-effective:

Tesla Model 3 in 2017 cost between $36,000 and $40,000. A Ford C-Max plug-in hybrid in 2017 cost approximately $22,000 ($17,000 after a $4,000 Federal rebate).

The C-Max, being a plug-in hybrid, still required regular maintenance such as oil changes, although many of these were minor given the reduced usage of gas. Even with this, the Tesla was seen as a more cost-effective option due to the significant reduction in fuel and maintenance costs:

Tesla Model 3: $0.27 per mile (12 cents for charging plus 15 cents for other costs) Ford C-Max Plug-in Hybrid: $0.21 per mile (12 cents for fuel and 9 cents for other costs)

Conclusion

From the above analysis, it is clear that electric vehicles and, to a lesser extent, hybrids are more cost-effective in the long run compared to gas-powered vehicles. However, the cost savings depend significantly on driving habits and fuel prices.

For individuals with low mileage and a willingness to invest in EV technology, these vehicles can provide substantial cost savings and reduced environmental impact. However, for those with higher mileage or concerns about the current EV infrastructure, a hybrid or traditional gas-powered vehicle may still be the better choice.

Bearing in mind the current state of the market, the most cost-effective car to own right now is a Tesla electric car. The 2017 Ford C-Max, being a plug-in hybrid, demonstrated the potential savings, but the cost-effectiveness is even more pronounced in newer EVs like the Tesla Model 3, which can provide about $5,000 in fuel and maintenance savings over 10 years.