If you compare the acquisition cost of vehicles, you need to pay a premium to purchase an EV over its ICE counterparts. Gasoline prices have been steadily rising. Consider switching to driving an electric car. But a press of concern on costs might also push you to reconsider. Does financial sense make to purchase an electric vehicle in the long run?
The answer could be yes.
How are EVs more cost-effective than ICE vehicles?
CNN stated there is no question that electric vehicles cost much less to fuel than gasoline-powered models, especially with gas prices at around almost $5 a gallon on average, according to AAA.
However, they also added that it rarely makes sense to purchase a new car to save fuel money. New vehicles cost more than you would save on fuel, but an electric vehicle is an excellent option if you’re already in the market for a new car.
Purchasing a new electric car is reportedly more expensive than a gas-powered vehicle. However, recent research from Consumer Reports shows that over the lifetime ownership of a conventional gas-powered vehicle, fuel and maintenance costs will add up to even more than the purchase price. Though higher price upfront, consumers can save more on operating expenses with electric cars.
“The latest generation of mainstream EVs typically cost less to own than similar gas-powered vehicles, a new development in the automotive marketplace with serious potential consumer benefits.”
Before diving deep into buying an electric car, it is also crucial for you to consider the availability of infrastructure in your place.
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- CES 2023: Higher EV prices force Stellantis to cut cost
- Tesla cuts EV prices in China by up to 9% as analysts warn of ‘price war’
- Tesla vs. ICE: Second-hand EV prices increased 5X more than combustion-powered cars in July
While electric cars may have a higher upfront cost, they can offer financial benefits over the long run, including lower fuel and maintenance costs and potentially higher resale value. It’s essential to research and compare the prices and benefits of electric and gas-powered cars based on your specific circumstances and location.