With gas prices fluctuating and electric vehicle (EV) options increasing, many consumers are asking: Should I buy an electric car to save money? The answer depends on how and how much you drive. Here’s a breakdown of the financial side of EV ownership.

1. Purchase Price: Upfront Cost vs. Long-Term Savings

EVs have historically been more expensive than gas cars, but prices are coming down. In 2025, you can buy a new EV like the Chevrolet Bolt EUV or Nissan Leaf for under $30,000 after federal tax credits.

Incentives may include:

• Federal EV tax credit: Up to $7,500
• State/local rebates: $1,000–$5,000 depending on where you live
• Home charger installation rebates

Though the initial cost may be higher, the lifetime cost often favors EVs.

2. Fuel Cost: Electricity vs. Gasoline

Gasoline averages $3.50/gallon in the U.S., while EV charging costs roughly $0.04–$0.06 per mile. That translates to:

• $600/year to power an EV (average U.S. driver)
• $1,200–$1,800/year to fuel a gas car

Over 5 years, that’s $3,000–$6,000 in fuel savings.

3. Maintenance Costs

EVs have fewer moving parts:

• No oil changes
• No spark plugs or exhaust
• Regenerative braking means less brake wear

Studies show EVs cost 40–50% less to maintain than internal combustion vehicles.

4. Battery Longevity and Resale Value

EV batteries now come with 8–10-year warranties, and most retain 80%+ capacity after 100,000 miles. Resale values are rising, especially for well-known models like the Tesla Model 3.

5. Total Cost of Ownership

When factoring in:

• Tax incentives
• Lower fuel/maintenance
• Slower depreciation (for newer models)

EVs often win on total cost of ownership even if they cost more up front.

Verdict:

If you’re looking for long-term savings and drive more than 10,000 miles/year, buying an EV is a smart financial decision especially with incentives in place.