Electric vs. Gas-Powered Vehicle Cost of Ownership

Electric vs. Gas-Powered Vehicles: What’s the Difference?

How electric and gas-powered vehicles are made differs significantly. Here’s a quick overview of the differences between these types of cars:

features	electric Car	Gas-Powered car
Mechanics	Electric motor powered by a rechargeable battery.	Internal combustion engine fueled by gas.
environmental impact	Zero tailpipe emissions.	CO2 emissions and other pollutants.
Maintenance	Fewer moving parts and less routine maintenance.	Various services are required every few thousand miles.
Fueling	Charge at home or a public charging station.	Refuel at gas stations.
Performance	Instant torque and a smooth, quiet ride.	Quick acceleration and, on average, higher speeds.

Another critical difference between these types of vehicles is the cost of ownership. Several factors influence electric vs. gas-powered vehicle cost of ownership, each of which we’ll discuss in more detail now.

Cost To Power Electric vs. Gas-Powered Vehicles

The cost of keeping the model fueling your travels is something to consider every week when owning a vehicle. For a gas-powered vehicle, you need to visit a local gas station. According to the American Automobile Association, individuals spend up to $3,000 per year adding fuel to their gas-powered cars.

Compared to electric vehicles (EVs), these owners can charge either at home or a public charging station. Charging at home usually costs less. However, at-home chargers typically take longer to power your EV than public charging stations.

Experts who have studied the cost of ownership between EVs and gas-powered cars have found that EV owners spend 60 percent less to power their vehicles. Depending on the body style and driving range, it’s estimated that EV owners spend more than $1,300 less to power their cars annually.

Maintenance Cost of Ownership: EV vs. Gas-Powered Vehicle

Electric cars are the way to go when looking for a vehicle that will provide you with lower maintenance costs. The elimination of the engine excludes about 200 parts that require routine maintenance and future repairs.

Some of the services that are needed for a gas-powered vehicle but aren’t required for an EV include:

• Oil and filter change
• Spark plug replacement
• Engine tune-up
• Belt replacement

While electric cars still need routine maintenance, experts have found that maintaining an EV costs about half as much as maintaining a gas-powered vehicle.

Federal & State Financial Incentives

As a final note on electric vs. gas-powered vehicle cost of ownership, the purchase of an EV may make you eligible for federal and state tax incentives that aren’t offered with the purchase of a gas-powered vehicle.

The federal government offers a clean vehicle tax credit of up to $7,500 with the purchase of an eligible EV. Additionally, you may qualify for state-offered benefits, including:

• $500 rebate for purchasing a or pre-wiring for a level 2 at-home charging station via Indiana Michigan Power.
• Rent a level 2 charging station for a flat monthly rate via Duke Energy.
• $50 quarterly incentive for those who charge their EV during off-peak hours via Duke Energy.

While these credits and rebates don’t alter the overall cost of ownership of an electric vehicle, they are an added perk that isn’t offered with a gas-powered vehicle.