Does Driving an EV Save You Money?

September 12, 2022 12:00 am Published by Leave your thoughts

When you decide that you are getting an EV, the first question that you may ponder is, “Will I save money with an EV?” Everyone wants to make a wise investment choice, and saving cost is among the main goals. The answer is yes. After some years, you will manage to save some nickels and dimes by driving an EV over a gas-powered vehicle and might recover costs sooner due to some added perks of buying an EV. You may be curious to know how much money you will save by driving an EV. Read on to get insight into how an EV will save you money and the rough estimates to expect.

How Much Money Can I Save With an EV?

It is hard to quote a specific guaranteed amount for the savings because different factors will influence the costs of acquiring and maintaining an EV, which eats on the potential savings. These factors include;

Cost of gas over electricity

The money spent at the gas pump has constantly been rising, significantly increasing the maintenance cost for gas-propelled vehicles. Compared to high gas prices, electricity is a cheaper energy source, making an EV a more pocket-friendly option for motorists. According to the Union of Concerned Scientists ditching a gasoline car for an EV will save you around $700. It will make more sense after a more extended period of EV use. However, the savings margin will change depending on the specific electricity rates in your state. Besides saving your pocket, driving an EV will eventually save the environment. Other cheaper and greener charging options for EVs, including solar energy, are available. 

Home Charging Versus Public Charging Stations

The initial cost of installing a charging station at home is estimated at $1,200, which is considerably high. However, it is an economical option in various ways. First, you can enjoy a tax credit from the federal government, which may range between 30% of the total installation costs. It means you will end up spending about $300 less. Depending on your EVs battery capacity, you will also spend less money charging than fueling your car. 

For instance, you will roughly save $15 by charging a 150-mile range Nissan Leaf over fueling a gas-powered 25 miles/gallon car with enough gas to cover a 150-mile distance. You will also avoid the high charging rates billed at commercial charging stations. Taking advantage of off-peak electricity rates, monthly payment plans, and free charging stations in some hotels and public buildings will save you more money. 

Retail Price Over Subsidies

Gasoline-powered cars are affordable, rating by the sticker prices than their electric counterparts. You might spend between $15,000 and $20,000 to acquire an EV. The good news is that by choosing an EV, you can enjoy an EV tax credit from the federal government and reimbursements from manufacturers. 

It may take off around $7,500 from your car’s retail price. Considering what you save by charging instead of fueling and the lower maintenance cost of an EV, estimated at $330 annually as per the AAA, you will be able to break even and save money after about three years. Factoring in electric car subsidies available in some states, the number of years will significantly lower to around one and a half years.

Driving an EV is a more cost-effective option compared to a gas-powered car. The amount you will save varies with your unique circumstances. However, getting a home charging station installed by a qualified and trustworthy electrician is a game changer due to the numerous benefits of home charging. 

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