Do Electric Vehicles Save Money?

Electric vehicles (EVs) are continuing to grow in popularity, which might start the gears in your mind to consider an EV for your next vehicle purchase. Many drivers want to know if EVs actually save money in the long term, as many of them can come with a higher sticker price than traditional combustion engines. Here to dive into just how much EVs can save you in the long term is Capistrano Volkswagen, with insight into average fuel costs, maintenance expenses, and other factors that can either make or break the bank.

Do EVs Save Money?

Many factors contribute to the overall cost of ownership for an EV, making this a simple question with a complex answer. In short, it depends. It depends on the vehicle’s reliability, how well you maintain the vehicle, your driving habits, and several other factors. When it comes to sticker price, as of September 2023, the average paid price for an EV is just $2,800 more than a new gas-powered vehicle. As the electric vehicle market continues to expand, the margin between the two options keeps getting smaller and smaller.

EVs vs. Gas-Powered Vehicles

To help you make an informed decision about your next vehicle purchase, Capistrano Volkswagen wants to help you compare EVs with traditional gas-powered vehicles. Here’s a comparison showing the average maintenance and fuel costs and the average life span of each vehicle:

Maintenance Expenses

Since many electric vehicles don’t use complex internal combustion engines, they don’t have many of the complex parts that wear out as fast as they do on gas vehicles. Even the parts they have in common are less prone to wear due to innovative technology features.

For example, both vehicles use brakes to slow and stop the vehicle. Electric vehicles use regenerative braking technology to convert kinetic energy to stored energy, which can reduce the wear on the brake pads. You also don’t have to worry about things like replacing a fuel pump or having to hassle with swapping out spark plugs, as electric vehicles don’t use these items.

As of October 2020, a Consumer Reports article clearly outlines that average maintenance costs for an electric vehicle are significantly lower than those of an internal combustion engine. Findings show the average lifetime maintenance and repair cost of a combustion engine is around $9,200, whereas plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) have an average cost of $4,600.

Fuel Costs

A 2020 study done by Joule shows that the average cost to fuel up an electric vehicle in the United States ranged between $0.08 to $0.25 per kWh. Current average fuel prices are at $3.542 per gallon as of March 2024 but were at $2.272 per gallon at the time of the 2020 study.

This translates to an average cost saving — in fuel alone — ranging between $4,220 to $9,082 for PHEVs. This means that regardless of whether you use a more expensive charging option or a less expensive method to charge your vehicle, you can reap the reward of saving your hard-earned money when it comes to filling the tank.

Longevity

Understanding that EVs can save you big is great, but you might also wonder just how long an EV can last. There’s no point in driving a vehicle that you’ll have to replace in a few years, right? Well, you can rest assured that your electric vehicle will last for years to come.

It all comes down to how long the car battery will last and J.D. Power shows that generally, EV car batteries can last anywhere from 10 to 20 years. The average life span of a gas-powered vehicle is around 200,000 miles, which, if you drive the average 15,000 miles like most drivers, equates to around 13 years.

Other Ways To Save

If you’re still looking for ways to save even more on your electric vehicle, there are many additional programs to look into. Here are some key programs that can help you save big on your electric vehicle purchase:

• The Inflation Reduction Act (IRA) can provide tax credits ranging from $4,000 to $7,500 for qualifying electric vehicle purchases.
• Dealerships and some states offer electric vehicle rebates and state tax credits for electric vehicle purchases.
• Electric providers can also offer rebates to electric vehicle owners.
• Installing an at-home charger can also save a few hundred dollars in a few states.

Final Verdict

Almost every study shows that electric vehicles come out on top when it comes to saving money. Exact savings depend on what vehicle you choose, how you use your vehicle, and even the state you live in. Regardless of these factors, there is proof that buying an EV can help you save big.

Volkswagen EVs to Explore

Making its debut in the EV market, the 2024 Volkswagen ID.4 is a stylish, roomy, and fun SUV to tackle the urban jungle. This EV starts at an MSRP of $38,995 and packs many innovative features to make this the perfect electric SUV for everyone.

Some key features that can transform your driving experience include:

• EPA-estimated range of 275 miles.
• Estimated charging time to get from 10% to 80% in 30 to 36 minutes when charging at 170kW or higher.
• Zero to 60 time of 5.7 seconds.
• Available all-wheel drive that’s capable of towing light loads.
• 64.2 cubic feet of cargo space.
• IQ.DRIVE that features advanced driver assistance technology.

Find Your Next EV at Capistrano Volkswagen

If you’re ready to start making your EV-ownership dreams a reality, stop by Capistrano Volkswagen today. With many new electric vehicle options, and even some used EV choices, you can find the perfect EV for you and your family. Stop by our dealership today to check out the new Volkswagen ID.4 to take this innovative SUV out for a spin. Or, if you have additional questions about the Volkswagen ID.4, our team of experts can help you with that too. We look forward to helping you find the perfect cost-saving EV soon.