Switching from gas to electric vehicles or EVs has been marketed as a sustainable solution to minimizing one’s individual carbon footprint. Another main benefit highlighted is the high cost savings that you get in the long run.
While the blanket statement is relatively correct, it’s important to have the whole truth behind how your finances will be affected.
Contents
Why the Electric vs. Gas Debate Matters
Figuring out whether you’re going electric or gas matters because of its massive effect on the environment. So many people drive or use vehicles to get around every day, and only those running on electricity produce zero tailpipe emissions compared to gasoline-powered vehicles.
Even just transitioning to a hybrid or plug-in hybrid can at least decrease tailpipe emissions in the long run. While electricity production may generate its own emissions, it still doesn’t make EVs as strong and polluting as conventional vehicles.
Is Switching to Electric Worth It?
Despite rumors of declining EV popularity, switching to an EV is more than worth it. In fact, a survey finds that 92% of EV drivers who made the switch won’t return to their gas or diesel counterparts. The lower operating costs have been the most motivating factor behind this decision, while its environmental benefits come second.
At least 4% of EV drivers would opt for a plug-in hybrid car if they had to replace their car the next day. However, the sentiment emerges as the conversation on upfront affordability comes to light.
Comparing the Costs
Swapping your gas car for an electric one is a big decision. Check out this breakdown of the costs and where you’re actually saving money:
1. Upfront Costs
The upfront expense of paying for a car can be heftier when going the electric route. For reference, the average transaction price for a new EV in August is approximately $57,245 this year compared to the general $49,077 for all cars.
If you did have an existing gas-powered car and you’re selling it to buy an electric one, it can ease the initial financial burden. However, the gap between the two is one of the pain points behind making the swap and sparks calls for further affordability.
2. Charging Fuel
Fuelling up the car is one of the most consistent expenses you have when dealing with the car, and charging an EV is more advantageous. EV charging costs an average of $2 per gallon for gas, which is at least $1 less than what you’d typically pay at the pump.
Other additional variables to consider include choosing between home and public charging stations. The former can have an upfront cost, but it can significantly lower the rates and provide more convenience to the car owner.
3. Upgrades
Gas and electric cars have relatively even costs when updated, but this mainly depends on what factors are being changed. For example, exploring new battery technologies that can make them charge more efficiently is the same.
Gas cars can be more expensive if you’re working on adding front air dams or even thinking of moving up to a dual-fuel system to minimize costs and reduce pollution. Generally, swapping to an EV can bring all those benefits and further long-term cost savings.
4. Maintenance
Preventive maintenance is key to keeping cars running smoothly. Because of their simpler mechanical composition, EVs generally need less maintenance than gas cars. Gas cars would need regular oil changes, fluid flushes, and the like to keep their systems intact.
There are similar non-system-related costs between the two, such as tires, windshields, and more. However, since they are still the same, you can focus on other costs when comparing them.
5. Repairs
Repairs are a must when your vehicles encounter problems. Once again, EVs are much more affordable due to their composition. Gas systems have more components that can be costly to fix when they fail.
That said, the actual cost still depends on the gravity of the problem. For example, if the EV’s battery is directly affected and broken, repairing or replacing it can be quite expensive to fund.
6. Resale Value
Selling an EV may be more lucrative than a gas car. A report finds that the supply of used EVs has gone up 50% year over year and that they are getting off the market six times faster when they are rebate-eligible and with warranties.
About 55% of the inventory of used EVs is under or around $30,000. Right now, only 11% of gas cars are sold for $20,000. From an investor’s point of view, you get better returns with the EV.
Other Ways to Minimize Expenses
Choosing an EV will result in greater cost savings in the long run, but it’s not without its faults. However, there are some great ways to keep the expenses to a minimum.
1. Take Off the Plug when Necessary
Some EV drivers will plug into public charging stations, but try to be wary of how long you use them. Standard ones will account for every 60 seconds in your invoice as long as you’re plugged in, regardless of how full your batteries are. Invest in a home charging station when you can and set up timers to pull the plug.
2. Plug in During Low-Demand Time
Plug in your EV during off-peak hours for electric consumption in your area. It’s typically midnight to early morning, but it can still be different for each area. The less demand you have within that window, the lower the final bill will be. You can see and compare the results if you do this more consistently.
3. Take Advantage of Smart Charging Apps
Use smart charging apps when available for your EV charging. These can typically be found on your mobile devices and connected directly to the car. Turn on notifications to prevent overcharging. Aside from minimizing costs, you’re keeping the battery health in a good place and reducing the likelihood of repairs or replacements.
4. Consider Other Renewable Resources
If you have a home charging station, consider using other renewable resources to power it up. A study finds that the annual operational costs for an electric car are 81.35% lower if the energy is from photovoltaic plants. Plus, you’d be making another sustainable move that would reduce your carbon footprint.
5. Optimize Your Routes
Using up the battery and charging sooner can certainly rack up your electric bill at the end of the month. Make sure you’re being smart about how often you’re using your car and how much energy you’re consuming. Look up optimal routes to get to your destination to minimize mileage. You can also walk for short distances when able.
6. Practice Proper Maintenance
Keeping up with EV maintenance can help you curb any repairs or replacements that would create unforeseen expenses. Make sure that you’re setting regular appointments and checking for any necessary upgrades. You can also exercise good charging habits to minimize the likelihood of premature degradation.
Understand the Full Financial Picture
Electric vehicles can provide more long-term savings than their gas counterparts, but it’s important to be mindful of more prominent costs, such as the upfront investment and upgrades. Practice the tips above to minimize your expenses as much as possible.