Electric Cars: Do They Save Money?

In recent years, industry experts have praised electric vehicles for many reasons, such as their low emissions, domestic energy usage and the convenience of home charging. After analyzing the evidence presented, it's clear that these vehicles are a better choice for the environment, but will they save you money? The answer to this question depends on several factors, including the initial cost of the car, how long you own it, the repairs it needs and the market price of gasoline.

Purchase Prices

Electric vehicles are significantly more expensive than standard gasoline-powered models. In fact, an electric car can cost as much as $15,000 more than a comparable fueled vehicle. Recovering from such a disparity can be difficult.

Fuel Costs

Powering an electric car is much less expensive than powering a fuel-powered vehicle, especially when the price of gas is high. In fact, it costs more than three times as much to power a standard vehicle than it does to power an electric car. For drivers who spend a lot of time on the road, these savings can add up.

Repair Costs

The most significant repair cost you will encounter for an electric vehicle is battery replacement. If battery replacement is required, you can expect to spend as much as $13,500 on a new battery for your electric car. Engine repair on a standard vehicle, however, varies by the type of car. On a less expensive car, you may spend as little as $5,000 on engine repair, whereas a luxury car's engine may cost as much as $18,000 to replace.

Analyzing Overall Cost

With so many factors coming into play, determining whether an electric car is right for you can be somewhat challenging. If you don't spend much time on the road, for example, you won't save enough money in fuel to make up for the high purchase price of an electric car. If you drive frequently, however, you may recover your initial costs quickly.

You must also take the cost of repairs into consideration. If you purchase a luxury vehicle and you plan to keep the car for a long time, the cost of repairs on a fuel-powered vehicle with an expensive engine is likely to exceed the cost of repairs on an electric vehicle. On the other hand, if your car has a less expensive engine, an electric vehicle will cost you more in the long run.

In the end, deciding on the right course of action requires careful consideration of all costs involved, as well as your own driving habits.