High Gas Prices: Should You Get an Electric Car?

Figuring out operating costs for a car with an internal combustion engine (ICE) is straightforward, but doing the same for an EV involves a new set of calculations. Let’s see how the numbers determine per mile driving costs for an ICE-powered car versus an EV.

Crunching the numbers starts with knowing what the fuel economy is for a conventional vehicle. The U.S. Department of Energy says the average car gets about 24 miles per gallon. To find out the specific mileage rating of your vehicle, however, visit fueleconomy.gov. Relying on more government data, we also learn that the typical driver is behind the wheel for about 11,500 miles per year. Of course, the annual miles driven and fuel economy may differ in your situation. But we’ll stick with the averages for our purposes. According to the U.S. Energy Information Administration (USEIA), the average price for a gallon of gasoline, as of this writing, is $4.12.

Here’s how the data works out:

miles driven / miles per gallon = gallons of gas used (annually)

11,500 miles / 24 MPG = 479 gallons

annual refueling cost / miles driven = driving cost per mile

$1,973 / 11,500 miles = $0.172 per mile

Now let’s look at the per-mile costs of driving an EV. Fortunately, you don’t need to be an electrical engineer to do the math. The formula begins by knowing your electricity costs per kilowatt-hour (kWh). Electric utility rates vary greatly by region and even time of day. According to the USEIA, the average residential consumer pays $0.1492 per kWh, but your bill should have this information.

Next, multiply the cost per kWh by the battery size. This determines how much it costs to recharge an EV with zero battery power. Battery size differs significantly by vehicle, but let’s use a Tesla Model 3 as an example. In its least expensive form, this EV has a 54-kWh battery and a 272-mile range. Keep in mind that battery range can fluctuate based on weather, driving style, cell condition, and other factors. But for our purposes we’ll keep with the manufacturer’s estimated range of 272 miles.

Based on this, here’s how to calculate the cost per mile to drive a Tesla Model 3:

cost per kWh X battery size = recharge cost

$0.1492 per kWh X 54-kWh = $8.06

recharge cost / range = driving cost per mile

$8.06 / 272 miles = $0.030 per mile

Upkeep on a conventional vehicle includes many things like oil changes, filter replacements, brake work, tire replacements, alignments, and the repair of failed components.

Because an EV has a reduced number of moving parts, there are fewer repairs and less routine maintenance. An EV is far from maintenance-free, however. In particular, an EV owner will replace the tires more frequently due to the battery pack’s extra weight. In addition, the car will still need brake service and alignment work.

But it’s hard to escape the overall lower maintenance costs of an EV. Plus, less upkeep means less vehicle downtime and more free time.

Looking at the examples, it’s evident that EV ownership is a fraction of an ICE-powered car on a per-mile basis. That’s hard to ignore, especially when adding in lower maintenance expenses. But, there’s much more to consider with EV ownership than out-of-pocket costs.

EV owners don’t have the convenience of a charging station on almost every street. Instead, recharging an EV involves preparation and planning.

Charger Access: Determine where you’re able to recharge an EV. On the home front, this might involve installing a 240-volt charger in the garage or relying on a community charger at an apartment building or work. Commercial charging networks are another option.

Types of Chargers: Charging comes in three flavors

Level 1 uses 120-volt (household) current to replenish an EV at about 3–5 miles per hour.

Level 2 is based on a 240-volt supply that recharges at a rate of 10–80 miles per hour (the recharge rate depends on the charging station and the EV’s capability).

Level 3, also known as DC fast charging, is the most rapid recharging solution and is only available via a commercial charger. When an EV manufacturer talks about recharging in minutes, it usually involves Level 3 charging. This type of charging restores battery capacity at 3–20 miles per minute.

Charging Speeds: Not all EVs are created equal regarding charging speed. While not an absolute, the higher an EV’s price, the quicker it charges. Remember that EV batteries charge most quickly in the 10–80% capacity range. The recharge rate will slow when a battery is almost empty or near full, a safety measure designed to maximize battery life.

Charging Costs: As previously mentioned, electricity costs differ by location. And some utility companies will offer reduced nighttime rates to encourage off-peak recharging. Also, note that using a Level 3 commercial charger almost always costs more than other options unless the automaker provides free or reduced-price access.

First-time EV buyers should identify important features and qualities before signing any paperwork.

Range: Arguably, the most essential aspect of an EV is how far it can go on a charge. If your regular travels involve 500-mile round trips, and you purchase an EV with a 200-mile range, then plan on making at least three stops to complete the journey. In other words, think about your driving patterns and buy accordingly.

Drivetrain: Just like gas-powered cars come in front-wheel, rear-wheel, and all-wheel drive, so do EVs. Particular configurations may work best for specific road conditions, like all-wheel drive in the snow, but the drivetrain can affect range, performance, and price.

Charging Speed: Be sure to evaluate how long it takes to recharge an EV that’s under consideration.

Charger Network Access: Tesla gained a loyal following by creating its Supercharger network, and other manufacturers are catching up or partnering with third-party companies. Charger network access is less vital for around-town driving, but it’s a must-have for stress-free, long-distance travel. Evaluate what each EV brand offers.

Driving Experience: Driving an EV is different from a gas-powered car. Most EVs offer instantaneous acceleration and maximize range by using regenerative braking (which involves stopping the vehicle by releasing the accelerator pedal, sometimes called one-pedal driving). A test drive will demonstrate the difference.

Wheel Size: Bigger isn’t always better regarding wheel size, especially if range is important. Larger wheels may look better, but they can zap range.

Warranty: Compare how the different EV brands back up their offerings, especially for battery coverage.

While an EV has lower operating costs, upfront prices are higher than comparable conventional vehicles. For example, the Kia Niro (a gas-powered hybrid) costs about $35,000, but in all-electric form, it runs almost $40,000. To put it another way, you’ll pay a higher price upfront for the privilege of having lower operating costs.

Federal tax credits can help offset the higher purchase price, but not all EVs qualify. And recently proposed legislation may rework the program. Check available credits and qualifying vehicles at fueleconomy.gov.

It’s impossible to refute that driving an EV costs significantly less than a gas-powered car. Add in lower maintenance expenses, and the rationale for an EV is even more compelling. The only stumbling blocks are range, charging, and high selling prices, but these are easily overcome by the right buyer.

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