Even without the federal $7,500 EV tax credit, electric vehicles remain more cost-effective over time compared to gasoline cars, according to a detailed analysis of ownership costs. Factors like fuel, maintenance, and depreciation favor EVs for most drivers. Hybrids offer a middle ground with better efficiency than pure gas vehicles.
The total cost of owning a vehicle encompasses the purchase price, fuel or charging expenses, maintenance, insurance, and depreciation. While gasoline cars have the lowest sticker prices—typically under $30,000 for models like the 2026 Chevrolet Equinox—electric vehicles start higher, around $36,495 for the EV version, due to expensive batteries. "The battery is going to be the biggest reason that EVs are more expensive," says Antuan Goodwin, CNET's EV senior writer.
Fuel costs highlight a key advantage for EVs. Charging at home costs about $550 annually for 11,000 miles at national average electricity rates of $0.175 per kWh, compared to $1,320 for gas at 26 miles per gallon and $3.20 per gallon. "Electricity has historically been less expensive than gasoline by a significant chunk," Goodwin notes. Hybrids, such as the Toyota Prius at 54 mpg, reduce refueling costs further but still trail EVs in efficiency.
Maintenance adds to EV savings: electric powertrains require fewer repairs, costing 6 cents per mile versus 10 cents for gas engines, with no need for oil changes or spark plugs. "Typically, it's set it and forget it," Goodwin explains. However, EV tires wear faster due to added weight, and major repairs like battery replacements are pricier. Gasoline cars demand more frequent upkeep for their complex engines, while hybrids split the difference.
Insurance follows a similar pattern: gas cars are cheapest to insure, followed by hybrids, with EVs highest due to repair costs. Depreciation remains unpredictable for EVs, which lose value faster amid rapid tech advances, though this may stabilize as the market matures, per experts Amelia Dalgaard and Goodwin.
Over five years, the 2026 Chevrolet Equinox EV totals $42,792 versus $43,088 for the gas model; by 10 years, it's $49,744 against $56,994. "In general, you're going to be better off with an EV," Dalgaard says. Driving habits, like annual mileage and home charging access, influence the best choice, but EVs edge out for long-term ownership.
