You’ve heard it a hundred times: an electric car is “cheaper in the long run.” But when you’re staring at a higher sticker price, rising insurance premiums, and headlines about depreciation, it’s fair to ask bluntly: is an electric car cheaper than a gas car in 2025, or is that just marketing?
The short answer
Electric cars are usually cheaper to run (fuel + maintenance), but not always cheaper to own overall. In 2025, studies show roughly 40–45% of new EVs beat comparable gas cars on five‑year ownership cost, but more than half still don’t. The real bargain is often a used EV with a healthy battery.
Do electric cars actually save you money?
To understand whether an electric car is cheaper, you have to separate two ideas that often get mashed together:
- Operating costs – what you spend to drive the car: fuel, routine maintenance, repairs.
- Total cost of ownership – operating costs plus everything else: purchase price, interest, taxes, insurance, depreciation.
On operating costs, EVs win almost every time. AAA’s latest “Your Driving Costs” report and other 2024–2025 analyses show that electricity is usually less than half the cost per mile of gasoline, and EVs spend around 40–50% less on maintenance over the first five years. But higher purchase prices, faster depreciation and sometimes higher insurance can erase those savings for certain models.
How electric cars stack up on costs (typical U.S. driver, 15,000 miles/year)
Why the answer depends on <em>which</em> EV
Some models, like mainstream compact EVs and certain electric SUVs, already beat their gas twins on five‑year total cost. Others, especially pricey luxury EVs, are still more expensive overall even though they’re cheaper to fuel.
Where electric cars are clearly cheaper
Let’s start where electric cars shine. These are the parts of the ownership equation where an EV is almost always cheaper than a gas car if you have access to home or workplace charging.
3 big ways an electric car can be cheaper
Fuel, maintenance, and city driving habits tilt the math in EVs’ favor.
1. Fuel: cents per mile, not dollars
Most American drivers spend around $2,000+ per year on gasoline. A comparable EV driver often spends $500–$700 on electricity at home. That’s roughly $1,300–$1,700 in annual fuel savings for the same miles driven.
If you do a lot of highway miles and mostly charge at home, this fuel gap compounds fast over 5–10 years.
2. Maintenance: fewer moving parts
EVs don’t need oil changes, spark plugs, exhaust repairs, or transmission service. Routine visits are usually down to tires, cabin air filters, brake fluid, and the occasional software update.
Consumer studies consistently find EV owners spend about 40–50% less on maintenance than gas owners in the first five years.
3. Stop‑and‑go city driving
Gas cars are least efficient in traffic. EVs are the opposite: regenerative braking recovers energy every time you slow down.
If your life is school runs, errands and downtown commuting, an EV’s low‑speed efficiency and reduced brake wear make your cost per mile look very good.
Used EVs amplify these savings
When you buy a used electric car, you keep the cheap fuel and low maintenance but skip most of the painful new‑car depreciation. That’s where the math really starts to look lopsided in your favor, especially if the battery still tests strong on a report like the Recharged Score.
Where electric cars can cost more than gas
If EVs are so cheap to run, why do some studies still show more than half of new electric cars costing more to own than gas cars over five years? Because several big‑ticket items push in the other direction.
1. Purchase price and depreciation
New EVs are still roughly 10–15% more expensive than similar gas cars on average, even after recent price cuts. And many lose value quickly in the first few years as newer, longer‑range models arrive.
Cost‑of‑ownership studies in 2024–2025 show that over half of new EV models still end up more expensive than their gas counterparts over a five‑year, 75,000‑mile window because higher upfront price and depreciation outweigh fuel and maintenance savings.
2. Insurance and repairs
Insurers are still learning how to price EV risk, and repairs often require specialized shops. Many U.S. drivers see premiums that are 15–25% higher for an equivalent EV than for a gas car.
Routine fixes are cheap, but a crash that damages the battery pack can be very expensive, and that risk is built into your premium.
Public fast charging can get pricey
Home charging is where you save. Relying heavily on DC fast chargers (at highway stations or in cities) can push your cost per mile much closer to gasoline, and sometimes past it, especially in high‑price electricity markets.
EV vs gas: simple cost comparison
Every driver’s situation is different, but it helps to see rough, realistic numbers side by side. Imagine two similar compact SUVs bought new in 2025 and driven 15,000 miles per year for five years.
Typical 5‑year cost comparison: new EV vs new gas SUV (U.S. averages)
Includes purchase, fuel, maintenance and estimated depreciation. Insurance and taxes vary widely by state, so think of these as directional, not promises.
| Cost item (5 years) | Electric SUV | Gas SUV | What it means for your wallet |
|---|---|---|---|
| Purchase price + taxes | $50,000 | $44,000 | EV starts out ~$6,000 higher, before incentives. |
| Federal/state incentives | - up to $7,500 | Usually $0 | Credits and rebates can erase most of the price gap if you qualify. |
| Fuel (home charging vs gas) | ~$3,000 | ~$10,000 | About $1,400/year fuel savings if you mostly charge at home. |
| Routine maintenance | ~$2,000 | ~$4,000 | Fewer moving parts = fewer service visits and less wear. |
| Depreciation (value lost) | $20,000+ | $16,000+ | Many EVs still depreciate faster, especially luxury models. |
Real‑world numbers will vary, but this snapshot shows why EVs are cheaper to run yet not always cheaper overall when bought new.
So… is the EV cheaper in this example?
If you qualify for incentives and charge mostly at home, the EV can come out a bit cheaper over 5 years, or at least very close, despite higher depreciation. Without incentives or home charging, the gas SUV may still win on total cost, even though it’s more expensive to run day‑to‑day.
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Why used electric cars are often much cheaper
Now let’s talk about where the math really tips: the used market. EVs tend to depreciate faster than gas cars in their early years. That’s bad news for the first owner, but great news for you if you’re shopping used.
How the numbers change when you buy used
You dodge the steepest depreciation but keep the cheap running costs.
1. You let someone else eat the big depreciation
Many EVs lose a large chunk of value in the first 3–4 years. That’s often because newer models offer more range or better tech, not because the car is worn out.
Buying a 3‑ to 6‑year‑old EV means you’re paying a price that already reflects that drop, while the car can still have plenty of battery warranty coverage left.
2. You still get low fuel and maintenance costs
A used EV is just as efficient to drive as it was when new. You still enjoy <$strong>cheap electricity and minimal maintenance, but on a much smaller loan or purchase price.
That’s why many used EVs easily beat comparable used gas cars on total cost, especially if you drive 10,000–15,000 miles per year.
Check battery health before you buy
Battery condition is the linchpin of a used EV’s value. A car with a strong pack can be a screaming deal; one with heavy degradation can be an expensive mistake. Tools like the Recharged Score battery health report give you an objective read on remaining capacity so you’re not guessing at the most expensive part of the car.
How to make an electric car cheaper for you
You can nudge the math in your favor with a few smart decisions, before you ever plug in.
6 ways to tip the scales toward a cheaper EV
1. Prioritize home or workplace charging
Plan to charge where electricity is cheapest and most predictable. A Level 2 home charger (240V) in your garage or driveway is ideal, but even a standard outlet overnight can work for modest daily mileage.
2. Right‑size the battery for your life
More range is nice, but you pay for every extra kilowatt‑hour in the battery. If you mostly commute and run errands, a smaller‑battery EV is often far cheaper to buy and still meets your needs comfortably.
3. Compare total cost, not just monthly payment
Look at <strong>purchase price, incentives, fuel, maintenance and expected resale</strong>. A slightly higher payment on a cheaper‑to‑run EV can cost you less per year than a “cheaper” gas car.
4. Consider a late‑model used EV
A 3‑ to 6‑year‑old EV with a verified battery and remaining warranty often offers the best value. Recharged specializes in these cars and includes a <strong>Recharged Score Report</strong> so you can see battery health and fair market pricing up front.
5. Shop insurance quotes before you commit
Don’t wait until delivery day to call your insurer. Get EV quotes early, some carriers are much friendlier on EV pricing than others, and switching companies can easily save hundreds per year.
6. Take advantage of current incentives
Federal tax credits of up to $7,500 are still available on select models in 2025, and some states or utilities offer extra rebates or discounted home‑charging rates. Those can erase most of the price gap between an EV and a similar gas car.
Who actually saves the most with an EV?
How different drivers experience EV costs
High‑mileage commuter (15,000–20,000 mi/year)
Biggest winner on fuel savings, electricity vs gas swings thousands of dollars over a few years.
A used EV with good battery health can be dramatically cheaper than a similar gas car over 5–8 years.
Home or workplace charging is key; public fast charging will eat into the advantage.
Suburban family with 2 cars
Using an EV for daily school runs, errands and commuting can slash fuel and maintenance on the “primary miles” car.
Keeping a gas vehicle for long trips removes range anxiety and lets you choose a smaller, cheaper‑battery EV.
Total household fuel spend usually drops sharply once one car goes electric.
Urban driver with limited parking
Biggest challenge is charging access; without home/workplace charging, public rates can narrow the fuel savings.
Car‑share or short‑term rentals may still make more sense than owning any car if you drive very little.
If your building offers EV charging at a reasonable rate, an EV can still be a great fit.
Low‑mileage driver (<7,500 mi/year)
You won’t see huge fuel savings because you don’t burn much gas to begin with.
Depreciation matters more than fuel; a modest, used EV or efficient gas hybrid might both pencil out well.
Choose the car that best fits your lifestyle; total dollars spent per year may be similar either way.
Common mistakes that wipe out EV savings
Even a very efficient EV can turn into an expensive choice if you stumble into a few predictable traps.
- Buying far more range (and battery) than you actually need, and paying for it twice, once in purchase price and again in higher insurance and taxes.
- Relying heavily on expensive public fast charging instead of setting up a reasonable home‑charging routine.
- Ignoring insurance quotes until the last minute and discovering your premium jumped far more than expected.
- Buying a used EV without checking battery health, then discovering limited range or an out‑of‑warranty pack.
- Focusing only on monthly payment and ignoring big‑picture costs like depreciation and resale value.
A word on batteries and fear
Battery replacement horror stories make headlines, but they’re not the norm. Most EV packs lose only a small percentage of capacity each year and are backed by 8–10‑year warranties. The real risk isn’t that every battery will fail, it’s buying a car without knowing the pack’s current health. That’s exactly what Recharged’s battery diagnostics are built to solve.
FAQ: Is an electric car cheaper in real life?
Frequently asked questions about EV vs gas costs
Bottom line: are electric cars cheaper?
So, is an electric car cheaper? In 2025, the honest answer is: it depends which car you buy, how you charge it, and whether you go new or used. EVs are almost always cheaper to run, and the more you drive, the more that matters. But high purchase prices, depreciation, and insurance can still tilt the scales for some models, especially when bought brand new.
If you want the best shot at winning the numbers game, a late‑model used EV with a verified healthy battery, affordable insurance, and reliable home charging is where the math looks best. That’s precisely the corner of the market Recharged focuses on: used EVs with transparent battery health, fair market pricing, flexible financing, and expert guidance from test‑drive to delivery. When you can see the real costs up front, it’s much easier to make an electric car not just cleaner, but truly cheaper for you.
