Do EVs Cost Less to Own?
Vincentric, a Michigan-based data aggregator that works with automakers and finance companies to develop detailed data on cost of ownership, has just released a study comparing the total cost of ownership of electric vehicles compared to gasoline vehicles. Looking at 50 different EVs, the study showed that on average EVs would save their owners over $18,000 (Canadian) over the life cycle of their vehicles.
EV Ownership Costs
The study investigated a combination of eight ownership costs, including depreciation, fees and taxes, financing, the cost of fueling, insurance, maintenance, repairs, and opportunity costs.
Fuel and maintenance costs were where EV owners saw the biggest savings. All 50 vehicles analyzed had lower fueling cost than their internal combustion counterparts. Interestingly, not all EVs were cheaper to maintain, but 41 out of 50 were.
Unsurprisingly, all 50 electric vehicles studied also performed better from an environmental perspective, even when factoring in the carbon cost of producing the electricity used to power the cars. Over five years, the 50 EVs all generated fewer greenhouse gases, with an average reduction of six metric tons of emissions.
The best performers in terms of greenhouse gas savings compared to gasoline equivalents were the Rivian R1T, Chevrolet Silverado EV, Audi e-tron GT, Rivian R1S, and Audi SQ8 e-tron. The lowest emissions over the ownership lifecycle were generated by the Hyundai Ioniq 6, Lucid Air Pure, Tesla Model 3, BMW i4, and Tesla Model S.
What Costs are Higher for EVs?
EVs did not perform better in every category. They are generally more expensive to purchase, and Vincentric’s data showed that in general EVs have higher depreciation values, costing their owners an average of $6,445 more than gasoline vehicles. 16 of the 50 vehicles studied had lower depreciation costs than ICE vehicles, however.
The best-performing electric vehicles for depreciation over five years were the Rivian R1T, Porsche Taycan, Ford F-150 Lightning, Audi Q4 e-tron, and Mercedes EQS SUV.
Like many countries, including the U.S., Canada has a federal rebate for purchasers of new electric cars; in this case, $5,000 for qualifying vehicles. When the federal rebate was factored into ownership cost, 27 qualifying EVs (with a starting MSRP of under $60,000 Canadian) had a lower total cost of ownership than gas cars; without the federal rebate, 25 still had lower ownership costs.
Conclusion: Thousands in Savings Over Time
Vincentric notes that total ownership costs for EVs are getting better with every year, and that their advantage is getting better over time. Compared to 2024, 98 percent of EVs had a lower total ownership cost than their ICE equivalents – up from 95 percent in 2023.
One interesting change was that more EVs have lower taxes and fees. 30 percent of EVs studied in 2024 had lower taxes and fees than their ICE equivalents, compared to just 22.5 percent in 2023.
For cost-conscious consumers who may be considering switching to electric, Vincentric suggests there may be no better time than now, when almost all EVs are more cost-effective to own over time than ICE vehicles.
