Do electric cars save money? These vehicles are eco-friendly, but are they a smart investment from an economic perspective?
An average American family spends most on housing and transportation. Could electric cars save money in the long run and help optimize your budget? This guide discusses why EVs can be a wise choice in today’s world!
Can You Save Fuel When Driving Electric Cars?
The first question is – do electric cars save money on fuel? The short answer is yes, and you’ll see that daily. According to a study that compared gas VS electric car savings in spending fuel, EVs are a far better option.
Operating a gas-powered vehicle in the United States costs $1,117 on average. The same study revealed you only spend $485 yearly on an EV. However, the difference depends on the state. You’ll spend $1,509 on gas and $1,106 on EV fuel in Hawaii. But while you save different rates, the statistics are clear – electricity is cheaper than gas.
It’s worth noting that fuel prices can vary significantly, which we could see during the latest crisis. If you analyze the last decade, gasoline has cost anywhere from $1.5 to $4 per gallon. The electricity rate in the US was far more consistent and stayed around $1.2. But it’s not only a matter of pricing but stability. It helps rely on the price you pay to power your car doesn’t change much over time.
Electric vehicles haven’t reached their potential yet. At this point, you can pass 100 miles with 30kWh of electricity. If you assess the electricity price, that’s about 30 miles per $1. Depending on the vehicle, your gas-powered car would go 15-20 miles with a $1 fuel value. And EV manufacturers are working to improve the technology to lower these costs further.
Are Plug-in Hybrid EVs More Efficient Than Standard Gas-Powered Vehicles?
A hybrid electric vehicle primarily uses electricity. But if the battery runs out, it switches to gasoline. But do electric cars save money with this setup? You need to pay for gasoline and electricity, but you can save with hybrid vehicles.
The experts estimate you’ll spend about 40-50 less on powering your car than when only using gas. These vehicles use the internal combustion engine when the battery needs recharging. It helps save on electricity costs but also shortens charging time.
Lower Maintenance Costs and Requirements for Electric Cars
If you go with an electric car, it won’t have an internal combustion engine. So, there is no need to deal with oil filters, radiators, exhausts, and other parts present in a gas-powered setup. Some electric vehicles even have regenerative braking. The motor is partially in charge of the braking, which extends the longevity of rotors and brake pads.
What if you have a hybrid EV? You’ll need to take care of the components in the internal combustion engine. But the trick is the vehicle won’t use this engine as much as a gasoline-powered car. As a result, the components won’t deteriorate quickly, lowering maintenance costs. This can be an important item when discussing gas VS electric car savings since vehicle owners know how expensive it is to maintain a gasoline-powered car in good condition.
Will You Increase Your Electric Bill with Electric Cars?
Yes, but the savings lie in the overall vehicle expenses you have. You didn’t use any power on charging a vehicle before you acquired an EV, so could electric cars save what you spend on utility bills?
The answer is no, but ask yourself this – do electric cars save money you’d spend on gas? While your electricity bill will increase, your gas expenses will lower significantly. This is a great trade-off since you’ll save on the money invested in powering your car.
You have ways to keep the electricity spending to a minimum, including:
- Discounts when using the electricity to charge electric cars
- Lower prices in specific times of charging EVs (off-peak hours)
- Decreased TOU (time-of-use) rate options when charging an electric vehicle
Making Your Electricity to Reduce Bills for Charging EVs
Solar panels have never been as accessible as today. If you live in a suitable climate, you can generate a lot of electricity.
Depending on the location, solar panels can prove a smart investment in only several years. They can also be the way of charging your electric vehicles without increasing your utility bills. As an added benefit, they will increase your property value.
Final Thoughts – Will You Save If You Buy an Electric Car?
Ultimately, do electric cars save money? If we are talking about the upfront investment, hybrid and electric vehicles cost more than gas-powered cars. But there are grants and other options that can lower the initial price.
And if we are talking about regular expenses on powering your vehicle, electric cars are an excellent saving option. If you drive an all-electric car, you use only electricity to run it. Depending on your location, you’ll spend two or more times less money than you would on gas. And even if you have a hybrid vehicle, you’ll end up with significant savings.
Maintenance is also easier and requires less money in EVs. You don’t have to worry about as many parts, and internal combustion engines in hybrid vehicles have a longer lifespan than in gas-powered cars. Of course, you’ll need electric car insurance, but that’s a wise expense and an important protection layer if anything goes wrong.
Overall, driving an electric car can bring significant savings, especially in the long run. The manufacturers keep working hard to improve their EVs, so the amount you save can only increase in the future.