$7,500 off you're used to getting along electric cars officially disappeared. Now that the federal rebate is gone, a fundamental question remains: Is it really cheaper to give up an electric car and stick with a gas-powered car? We set ourselves the task of finding out.
Total cost of ownership (TCO) is the only mathematical metric that matters when purchasing a car. This total cost of ownership includes everything from maintenance and depreciation to fuel costs—and it's where electric vehicles continue to take the lead.
When the big picture is taken into account, electric vehicles tend to be the cheaper option in the long run, according to auto experts. We've done the math to show you exactly how the costs break down so you can make smart comparisons before your next big purchase.
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Comparison of initial costs for an electric car, a hybrid and a gasoline car
The guide price is what most people think about when they compare the prices of different cars. From this perspective, the disappearance of the $7,500 federal electric vehicle tax credit puts electric vehicles at a significant disadvantage in terms of upfront costs compared to gasoline or passive hybrid vehicles.
In terms of start-up costs, we have a winner, a loser and a runner-up.
|
Winner 🏆 |
Cars with internal combustion engine |
Traditional gasoline cars typically have the lowest price compared to their electrified counterparts. These types of vehicles have long-established supply chains and economies of scale that make them cheaper to produce, experts say. Antoine GoodwinCNET's senior EV writer. |
|
Second place 🥈 |
Hybrid cars |
Hybrid-electric vehicles often have a small premium over pure gas vehicles due to the dual gas and electric powertrain, but they are usually still more affordable than most pure gas electric vehicles. |
|
Loser 💸 |
Electric cars |
Electric cars are usually at the top end of the price range. “The battery is going to be the biggest driver of electric vehicle prices,” Goodwin says. EVs also don't benefit from economies of scale as much. Plus, according to Amelia Dalgaard, an automotive expert known online as Motorhead Mom. |
Comparison of fuel and charging costs
You can't control gas prices, but you can control how much you spend at the pump.
This is where you start to see the biggest savings between electric vehicles and gas-powered vehicles. Here's what the costs look like:
|
Winner 🏆 |
Electric cars |
The cost of charging an electric vehicle depends largely on local electricity rates and where you charge your car. Charging at home with a Level 2 charger is usually the cheapest way to top up your EV, while publicly available Level 3 fast chargers are usually the most expensive. Overall, according to Goodwin and Dalgaard, charging an electric vehicle at home is cheaper than filling a similar car with gasoline. Over those average 11,000 miles per year at the national average electric rate, you'll spend $550 on charging. |
|
Second place 🥈 |
Hybrid cars |
Fuel costs for passive hybrids are typically lower than for conventional gasoline vehicles because they have lower overall fuel consumption. Some models like Toyota Priusget an average of 54 mpg. So while their initial cost may be higher than a pure gasoline vehicle, hybrids have a much lower cost per mile and therefore lower costs at the pump. |
|
Loser 💸 |
Cars with internal combustion engine |
Gasoline is typically a more expensive way to fuel a vehicle compared to an electric battery. “Electricity has historically been significantly cheaper than gasoline,” Goodwin says. The average gasoline car gets 26 mpg, which works out to an annual fuel cost of $1,320 for an average mileage of 11,000 miles per year. |
Maintenance and repair costs: less is more
Electric vehicles are also a big benefit due to their lower maintenance costs, which adds significant savings to their total cost of ownership. Here is their comparison with gasoline cars:
|
Winner 🏆 |
Electric cars |
While gasoline engines have a lot of things that can break, electric transmissions almost never break. “It’s usually set and forget,” Goodwin says. (There are no oil changes, spark plugs or exhaust changes.) This makes maintenance costs for electric vehicles much lower than their gas-powered counterparts. However, EV tires typically wear out faster because the vehicle is heavier. And if you do need to do major repairs to your EV (say, after a collision), it tends to be more expensive because replacing batteries and technology in an EV is expensive. |
|
Second place 🥈 |
Cars with internal combustion engine |
Gasoline cars require much more maintenance than electric cars. That's because gasoline engines have a lot more moving parts and a lot more things that can break compared to electric powertrains. Regular oil and fluid changes, as well as replacing brakes and other mechanical parts, can add significant costs to frequent maintenance. |
|
Loser 💸 |
Hybrid cars |
Passive hybrid vehicles require much the same maintenance as pure gasoline vehicles, but perhaps less often because the engine runs for less time. Meanwhile, plug-in hybrids, which have both an all-gasoline engine and a powerful battery-electric powertrain, are essentially the worst of both worlds when it comes to maintenance costs, Dalgaard says. |
Insurance cost comparison
Insurance is another constant cost that you simply can't avoid, but different types of cars can mean your policy prices vary widely.
The cost of insurance varies greatly depending on the type of car you have. Here are the general trends for different cars:
|
Winner 🏆 |
Cars with internal combustion engine |
They typically have the lowest insurance costs because they are cheaper to replace and repair after collisions. |
|
Second place 🥈 |
Hybrid cars |
Typically, these cars are more expensive to insure compared to pure gasoline cars because they are more expensive to begin with. |
|
Loser 💸 |
Electric cars |
These are the most expensive cars to insure because they have the highest price tag and because components like batteries cost more to replace, Goodwin and Dalgaard said. |
Depreciation and Resale Value: Wildcard
Depreciation—or how much your car's value declines over time—can have a huge impact on your total cost of ownership. That's because when you're looking to sell your car, its residual value can have a significant impact on how much money you'll lose in the deal.
Here's the breakdown between gas and electric cars:
|
Winner 🏆 |
Cars with internal combustion engine |
Because gasoline cars have been around for so long, their resale values follow a predictable and established depreciation curve. Currently, this usually means that gasoline cars are falling in price at a slower rate than electric cars. |
|
Second place 🥈 |
Hybrid cars |
These cars have traditionally held their value well due to high demand and fuel efficiency. |
|
Loser 💸 |
Electric cars |
Historically, electric vehicles have depreciated faster and faster than gasoline-powered vehicles. This is partly because EV technology is improving so quickly (resulting in longer battery ranges and faster charging) that older models are quickly becoming undesirable (much like older models). iPhone models– says Dalgaard). However, as the EV market matures, this effect may begin to wane, Goodwin notes, leading to higher resale values for EVs. |
Total Cost of Ownership Verdict
I compared the total cost of ownership of the same car in its electric and gas models to highlight the differences.
I did the calculations on a real-life example, comparing electric and gasoline versions of the same car: new 2026 release. Chevrolet Equinox.
|
Automatic type |
Electric cars |
Gas cars |
|---|---|---|
|
Make/model/year |
Chevrolet Equinox 2026 EV |
2026 Chevrolet Equinox |
|
Suggested retail price (sticker price) upon purchase |
US$36,495 |
US$30,495 |
|
Fuel/charging cost |
$0.05 per mile |
$0.12 per mile |
|
Cost of gasoline or electricity |
$0.175/kWh |
$3.20 per gallon (US average) |
|
Maintenance costs |
6 cents per mile |
10 cents per mile |
|
Cost for 5 years |
US$42,792 |
US$43,088 |
|
Cost over 10 years |
US$49,744 |
US$56,994 |
|
Cost over 15 years |
US$57,420 |
US$72,345 |
Winner: Electric Cars 🏆
Loser: Cars with Internal Combustion Engines 💸
Even without the federal government's $7,500 tax credit, the total cost of ownership for electric vehicles can still be lower than internal combustion engine vehicles.
“Overall, you'll be better off with an electric car,” Dalgaard says. That's because while upfront costs are higher for electric vehicles, gasoline vehicles can have more than double fuel costs and significantly higher maintenance costs.
Meanwhile, hybrids likely have an advantage over internal combustion engine cars (due to lower gas mileage) and offer a nice middle ground if you're not ready for an EV.
The best choice for you will also depend on your driving habits: how much you drive, how long you plan to keep the car and whether you can charge an electric car at home, for example.
“You now have more options to choose the transmission that's right for you,” Goodwin says of the current auto market.
You should crunch the numbers yourself using local electricity rates, gas prices and driving patterns. It's difficult but online calculators like this one from the New York Times can help you make a comparison.
