Do Electric Cars Save You Money?

For the average American household, transportation is the second largest expense after housing. Swapping a gasoline-powered vehicle for an all-electric vehicle (AEV) or plug-in hybrid electric vehicle (PHEV) can help you save money on day-to-day expenses!

Fuel savings from driving electric cars

One of the biggest day-to-day savings is the cost of fuel. A 2018 study from the University of Michigan found that electric vehicles cost less than half as much to operate as gas-powered cars. The average cost to operate an EV in the United States is $485 per year, while the average for a gasoline-powered vehicle is $1,117. 

On top of the cost savings, electricity rates are much more stable than gasoline prices. Over the past 10 years, the cost of fuel ranged from $1.50 to $4.00 per gallon. By comparison, over that same amount of time, electric car drivers paid about $1.20 for electricity to go the same distance.  A consistent electricity rate means that fueling an electric car is both more budget-friendly and more predictable.

As battery technology continues to improve, the equivalent cost per mile for driving electric vehicles is significantly less expensive than driving gasoline-based vehicles. Your average electric car can go approximately 100 miles per 30 kilowatt-hours (kWh) of electricity. Assuming that you can buy 1 kWh of electricity for $0.12, this means that you can travel about 36 miles for $1.00. In terms of gasoline-powered vehicles, your average car with a fuel efficiency of 22 miles per gallon will only be able to travel about 18 miles for that same $1.00 in costs. Essentially, by driving an electric car you can get double the mileage for your dollar.

Thinking of making the switch to an electric or hybrid vehicle? We have plenty in our inventory! Visit our website to schedule a test drive today!