In terms of monthly payments, insurance, maintenance and fuel, the total cost of owning an electric vehicle on a monthly basis is significantly lower than the corresponding cost of an internal combustion engine (ICE) vehicle, according to a recent study.
It isn’t surprising that many motorists get sticker shock when they see the price tag of most electric vehicles. This is understandable given that generally speaking, the most affordable electric vehicle costs approximately twice as much as the most affordable gasoline or diesel-fueled vehicle. However, the recent study suggests that motorists should look at a different metric when comparing ICE vehicles to EVs; that metric is the monthly cost of owning these types of vehicles.
The report shows that when a buyer focuses their attention on the federal tax benefits, fuel savings, and savings on maintenance as well as other monthly costs of an electric vehicle, it becomes undeniable that an EV typically costs less to own and is therefore a more pocket-friendly alternative.
Previous studies had shown that the high up-front cost of buying an EV was worthwhile because the buyer would eventually save as the years go by. However, the study conducted by Energy Innovation & Technology LLC established that in the vast majority of the United States, the cost of owning an electric vehicle was lower than owning an equivalent diesel- or gasoline-powered vehicle. This cost difference starts as soon as you acquire and begin financing the car, not years down the road.
The team of researchers came to these conclusions after focusing on half a dozen EV models, including the Nissan Leaf, Kia Niro EV EX, Hyundai Kona Electric SEL, Volvo XC40 Recharge Plus, and two others. The electric vehicles selected for this study had fossil-fuel equivalents from the same manufacturer. The team then came up with models of the costs of vehicle ownership in each of the 50 states. Those costs included fuel costs, insurance premiums, maintenance and repair costs, car loan repayment, and applicable fees and taxes, as well as the cost of electricity in each state.
Ford’s F-150 Lightning and Hyundai’s Kona Electric SEL were found to be more affordable to own in every single state. This affordability was noticed even when the electric versions cost $10,000 more than their fossil fuel counterparts did. This pattern generally played out across the different vehicle models compared.
The study also listed California, Washington, Oregon, Delaware, New Jersey and Colorado as the best states in which to own an electric vehicle.
As more information becomes available about the cost effectiveness of electric vehicles, manufacturers such as Workhorse Group Inc. (NASDAQ: WKHS) will see sales trending upwards for years to come, especially in the price-sensitive market segments.
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