SHOPSMART AUTOS – CUSTOMER INFORMATION – NOVEMBER 14, 2021-2
EV vs GAS WHICH ONE IS MORE COST TO OWN Another piece of the EV charging puzzle is the split between at-home and on-the-go charging. A 2017 GM study ofChevy Bolt EV
owners found that a whopping 92 percent charged at home or at work. We’re pooling all of that into home charging because tracking down every employer to see if and what they charge their employees for re-charging their EVs would be impossible. And we have no way of knowing how many of those EV commuters only charged up each evening at home. We threw all those calculations on charging into a bucket to determine the amount of it would take to keep the two EVs charged up enough to cover 45,000 miles.
Mini Electric
: $1939
Kona Electric
: $1723
Depreciation
The final piece of data affecting the cost of ownership of any vehicle is a big one: depreciation. It’s a knotty subject, as predicting depreciation is an educated guess based on past experience, customer demand, vehicle availability, brand reputation and, for all we know, the phases of the moon. A quick look at the numbers and its clear that EVs depreciate quicker than their gas counterparts. Cari Crane, Director of Insights at ALG (which used to be known as Auto Lease Guide), told us that the high cost of electric vehicles contributes to their steeper depreciation. “Dollar wise, we do see a premium on top of a compatible ICE (Internal Combustion Engine) vehicle comparably equipped in age. It’s just that price point that’s really causing that steeper depreciation.” We landed on the following numbers for three years-worth of depreciation using the source of AAA’s depreciation metrics,
Vincentric
.
Mini Hardtop:
$8,887
Mini Electric
: $13,653
Kona
: $10,663
Kona Electric
: $12,288
Three-Year Ownership Cost Comparison
After three years the grand totals give some insight into the question, “are EVs cheaper?” Based on purchase price, fuel, maintenance costs, and depreciation over a three-year period here’s what we’ve found for the cost-of-ownership of our subject vehicles:
Mini Hardtop
: $41,454
Mini Electric
: $49,312
Hyundai Kona
: $39,817
Hyundai Kona Electric
: $55,311
EV Tax Credits
Now, before you jump on the phone with your EV-driving friend, there are still additional variables. There’s the
$7,500 tax credit
that’s available for both of the electric cars. That brings the purchase prices of the electric vehicles down by that much. And that drops their ownership costs to:
Mini Electric
: $41,812
Hyundai Kona Electric
: $47,811
Which is Cheaper to Own?
So, by our calculations that makes the gas-powered Mini a mere $358 cheaper to own and operate over the first three years than its electric counterpart—essentially a wash. The Kona Electric, on the other hand, is more costly than the gas version by $7994. Then you get to factor in state and local incentives if those are available. Plus, as the years progress the lower cost of operating an electric vehicle (fuel and maintenance) continue to accrue. In the case of the Mini, it might just tip the advantage to the electric model. The current hitch is that not all new EVs are eligible for the $7500 incentive. Both
Tesla
and GM have hit their 200,000 vehicle cap. It’s also unlikely that the current administration will increase that cap any time soon. Eventually, other automakers will also lose the ability to dangle that federal incentive in front of buyers. ADVERTISEMENT – CONTINUE READING BELOW The other complicating issue is that comparing EVs and gas vehicles isn’t a straight comparison for most electric cars on the road. There are no
Tesla Model 3s
or
Ford Mustang Mach-Es
that run on gas. Buyers have to pit them against approximately similar gas vehicles. When you do that, the calculations to see which gives you the best bang for your buck can be even more headache inducing than what we’ve attempted here. But there’s a better way.
Do Your Own Comparison
If you’re interested in figuring out the cost difference between an EV and a gas vehicle, there’s a handy tool on the US Department of Energy’s site that
compares the overall cost of multiple vehicles at once
based on your yearly driving habits, EPA data, and even loan information. It even takes into account your state so that it can adjust the fuel-cost data to fit the gas and electricity prices of your area. So is owning an EV cheaper in the long run? All signs point to possibly. Maybe. Sometimes. But as we said, at this point in time, it’s complicated.
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