You’ve probably heard two conflicting claims: that electric cars are way cheaper to own than gas cars, and that they’re an expensive luxury that never really pays off. In 2025, the truth is somewhere in between. Whether electric cars are cheaper in the long run depends on how you buy, how much you drive, and crucially, whether you’re looking at new or used.
The big-picture takeaway
EVs are almost always cheaper to operate (fuel + maintenance) than comparable gas cars, often by thousands of dollars over five years. But higher purchase prices, insurance, and depreciation mean not every EV is cheaper to own overall, especially if you buy new and don’t drive much. Used EVs are where the math increasingly favors you.
Short answer: when are EVs cheaper overall?
2025 snapshot: EV vs gas ownership costs
Put simply, an EV is more likely to be cheaper in the long run if:
- You drive at least 12,000–15,000 miles per year.
- You can charge mostly at home or at low-cost workplace charging.
- You buy a reasonably priced model (or better yet, a used EV) rather than chasing the newest, priciest thing.
- You keep the vehicle at least 5–8 years, letting fuel and maintenance savings compound.
When an EV may not be cheaper
If you drive under 8,000 miles a year, rely heavily on expensive DC fast charging, or buy an expensive new EV and sell it in 3–4 years, a gas or hybrid vehicle can still be cheaper overall.
What actually makes an EV cheaper (or not)?
To decide if an EV is cheaper “in the long run,” you need to think in terms of total cost of ownership (TCO) over at least five years. Whether the car is electric or gas, the big cost buckets are the same:
Five-year cost buckets you should compare
EVs win big in some categories and lose in others
1. Purchase & depreciation
This is usually the single biggest cost. It’s the price you pay minus what you get when you sell or trade it. New EVs can depreciate faster than gas cars, especially in the first few years, but used EVs can flip this in your favor.
2. Fuel or electricity
How much you spend driving the car. EVs are extremely efficient, and electricity is still cheaper per mile than gasoline in most of the U.S., even with 2025 rate increases.
3. Maintenance & repairs
EVs have far fewer moving parts: no oil changes, no exhaust system, no multi‑speed transmission. Routine maintenance is almost always cheaper; collision repairs can be pricier but are relatively rare events.
4. Insurance, taxes, & fees
EVs can cost more to insure due to higher repair bills and replacement values. Some states now add EV registration fees, while others still offer tax credits or rebates. These can move the needle thousands of dollars either way.
Think like a fleet manager
Fleet operators don’t care about ideology, they care about cents per mile. When they adopt EVs, it’s usually because the 5–10 year cost per mile is lower, not because the sticker price looks good. You can run the same kind of math for yourself.
Fuel and energy: why EVs usually win here
Even with electricity prices up in 2025, EVs still enjoy a large fuel-cost advantage in most of the U.S., especially if you can charge at home.
Typical 2025 U.S. energy costs: EV vs gas
Illustrative averages; your local prices may differ.
| Scenario | Assumptions | Annual energy cost (approx.) | 5‑year cost (approx.) |
|---|---|---|---|
| Gasoline vehicle | 28 mpg; $3.15/gal average gas price | $1,690 | $8,450 |
| EV – mostly home charging | 0.30 kWh/mi; $0.17/kWh average residential rate | $765 | $3,825 |
| EV – mix of home & some DC fast charging | 70% home at $0.17/kWh; 30% fast charging at roughly double | $1,000 | $5,000 |
| EV – heavy DC fast charging | Mostly fast charging at highway rates | $1,400+ | $7,000+ |
Assumes 15,000 miles per year and a compact crossover-size vehicle.
Those are broad averages, but the pattern is consistent: charging at home at night is the single biggest financial lever in making an EV cheaper to run than a gas car. Fast charging on road trips is fine; relying on it day‑to‑day erodes a lot of the savings.
Home charging setup costs
A Level 2 home charger plus installation typically runs around $1,000–$1,500 before incentives. Spread over five years, it’s like adding $200–$300 per year to your “fuel” budget, still leaving EVs ahead for most average‑mileage drivers. Many utilities and some federal programs offer credits that can offset a big chunk of that.
Maintenance, repairs, and tires: the hidden savings
On the maintenance side, EVs have a structural advantage: there’s simply less to service. No oil changes, timing belts, spark plugs, or multi‑speed transmissions. Recent data from consumer and government sources converges on a simple story: EVs cost roughly half as much per mile to maintain as gas cars when you look over the vehicle’s lifetime.
How much less do EVs spend on upkeep?
There is a wrinkle: collision repairs on EVs are currently more expensive on average than for gas cars, often 20–30% higher per claim, driven by expensive components and the labor involved in safely working around high‑voltage systems. That’s uncomfortable headline fodder, but these events are infrequent for most drivers. Day‑to‑day, the lack of oil changes and engine repairs matters far more to your budget than one-in‑a‑decade crash risk.
Watch out for neglected EVs
A well‑cared‑for EV is cheap to maintain. A neglected one, skipped brake fluid changes, outdated software, or chronic fast‑charging abuse, can hand you big bills or reduced range. When you shop used, look for documented service history and, ideally, independent battery‑health data like the Recharged Score.
Insurance, taxes, and fees: where EVs can cost more
Insurance companies don’t care that you never buy oil changes; they care about how much it costs to put the car back the way it was after a crash. In 2024–2025 data, average EV repair claims tend to run roughly 20–30% higher than comparable gas models, and that flows directly into premiums.
Why EV insurance can be higher
- More expensive hardware: Battery packs, sensors, and aluminum body structures are costly to replace.
- Specialized labor: Shops need EV‑trained technicians and safety procedures, which raises hourly labor rates.
- Total‑loss thresholds: Insurers may total an EV sooner than a gas car when high‑voltage components are involved.
Factors that can offset this
- Safer vehicles: Many EVs have top crash‑test scores and advanced driver‑assist tech, which can reduce risk.
- Model choice matters: A mainstream used EV typically costs less to insure than a high‑performance luxury model.
- Shopping around: Some insurers now price EVs more competitively as they get more data.
On top of insurance, some states now charge extra annual registration fees for EVs to make up for lost gas-tax revenue, while others still offer generous purchase incentives. Over five years, these policy choices can add or subtract thousands of dollars from your personal TCO equation, so it’s worth checking your state’s latest rules before you buy.
Depreciation: the make-or-break factor
Visitors also read...
Depreciation, the quiet but brutal cost of a new car, has been the Achilles’ heel for many new EVs. Rapid improvements in range and charging, shifting incentives, and waves of off‑lease vehicles have pushed used EV prices down faster than many gas counterparts.
What recent data shows on depreciation
Market studies in 2024–2025 show that more than half of EV models are still more expensive to own over five years than comparable gas cars, largely because of higher purchase prices and faster early depreciation. At the same time, roughly half of models, often the more reasonably priced ones, already beat their gas peers on total five‑year cost when you factor fuel and maintenance savings in.
That might sound discouraging if you’re eyeing a new EV, but it’s actually good news for used buyers. When someone else eats that steep first‑owner depreciation, you get a lower entry price while still capturing most of the operating‑cost benefits.
Why used EVs can be a bargain
Sharp depreciation on early EVs means many 3–6‑year‑old electric cars now sell for a fraction of their new price while still offering solid range and years of remaining battery warranty coverage. That combination is exactly what can make an EV clearly cheaper in the long run.
New vs used EVs: very different math
Let’s contrast a simplified five‑year scenario for a compact SUV class vehicle, assuming 15,000 miles a year. These are rounded numbers meant to illustrate how the pieces fit together, not quotes for a specific model.
Illustrative 5-year cost comparison (compact SUV)
Rounded example for a mainstream segment; real models will vary.
| Category | New gas SUV | New EV SUV | Used gas SUV (3 yrs old) | Used EV SUV (3 yrs old) |
|---|---|---|---|---|
| Purchase price today | $35,000 | $45,000 | $23,000 | $25,000 |
| Value after 5 more years | $15,000 | $20,000 | $10,000 | $10,000 |
| Depreciation cost | $20,000 | $25,000 | $13,000 | $15,000 |
| Fuel/energy (5 yrs) | $8,450 | $4,500 | $8,450 | $4,500 |
| Maintenance & repairs | $7,500 | $4,500 | $6,000 | $4,000 |
| Insurance + fees (very rough) | $7,000 | $8,000 | $6,000 | $7,000 |
| Estimated 5‑yr total | ~$42,950 | ~$42,000 | ~$33,450 | ~$30,500 |
All figures are approximate five‑year totals, excluding taxes and incentives.
In this stylized example, the new EV just barely edges out the new gas SUV over five years, any change in incentives, resale value, or local energy prices could shift the result either way. The used EV, however, clearly undercuts both gas options, mostly because you’re buying in after the worst of the depreciation has already happened while still enjoying lower fuel and maintenance costs.
Not all models pencil out the same way
Luxury EVs with sky‑high MSRPs and rapid tech obsolescence can stay more expensive than gas alternatives even used. On the flip side, practical, mid‑priced EVs with decent range and stable demand often end up as the long‑run value plays.
Who actually saves money with an electric car?
Profiles that tend to win with an EV
1. High‑mileage commuters
If you drive 15,000–20,000 miles a year and can charge at home, fuel and maintenance savings stack up quickly, often enough to overcome slightly higher purchase and insurance costs within 4–6 years.
2. Used‑car value hunters
You’re willing to buy a 3–7‑year‑old EV, check battery health, and keep it a while. In today’s market, this group often sees the clearest total‑cost advantage over gas cars.
3. Homeowners with cheap off‑peak rates
If your utility offers time‑of‑use pricing, smart overnight charging can give you extremely low per‑mile energy costs and shorten the payback period.
4. Two‑car households
You can make an EV your main daily driver while keeping a gas or hybrid vehicle for road trips and edge cases, maximizing high‑value electric miles without overpaying for huge battery capacity.
When a hybrid might beat both
If you don’t drive much, can’t install home charging, or live in an area with very high electricity rates and cheap gasoline, a conventional hybrid can land in a sweet spot: lower fuel costs than a gas car without the higher purchase price and depreciation risk of a full EV.
How to run your own 5-year cost comparison
You don’t need a PhD in economics to decide if an EV will save you money. You just need a structured way to compare a few key numbers between the EV you’re considering and a realistic gas or hybrid alternative.
Five-step DIY EV vs gas cost analysis
1. Lock in realistic annual miles
Look at your last 12 months of driving (or fuel receipts) and estimate how many miles you actually drive. Using 10,000 when you really drive 18,000 will completely distort your result.
2. Estimate your real-world energy cost
Check your utility bill for your per‑kWh rate and your local average gas price. Use EPA or owner‑reported efficiency numbers (mi/kWh and mpg) to estimate yearly fuel costs for each vehicle.
3. Add routine maintenance expectations
For gas cars: oil changes, transmission service, spark plugs, belts, etc. For EVs: cabin filters, brake fluid, and maybe a little extra tire budget. You can use $0.10/mi (gas) vs $0.06/mi (EV) as a starting point and adjust from there.
4. Think realistically about depreciation
Look at used listings for 3–5‑year‑old versions of the models you’re considering. That gives you a real‑world sense of what they might be worth when you’re done with them, instead of relying on optimistic guesses.
5. Layer in insurance, taxes, and incentives
Get real quotes for insurance on specific VINs if you can, and check your state’s EV fees or credits. Don’t forget federal or local incentives that might reduce your upfront cost on certain vehicles.
A simple spreadsheet structure
Create a table with these rows for each vehicle you’re comparing:
- Purchase price today
- Estimated value in 5 years
- Fuel / energy cost (5 years)
- Maintenance & repairs (5 years)
- Insurance & fees (5 years)
- Any tax credits or rebates
Then subtract resale value from the sum of all other costs. That total is your 5‑year cost of ownership.
Why used EVs simplify the math
When you start with a used EV:
- Depreciation becomes more predictable and less brutal.
- You can see real‑world range today, not just brochure numbers.
- Service history and battery‑health reports help you avoid problem cars.
That’s exactly the niche Recharged focuses on: making used EV math transparent instead of mysterious.
How Recharged helps you tilt the math in your favor
Because Recharged focuses specifically on used electric vehicles, the platform is essentially built around making the “are EVs cheaper long‑term?” question easier to answer for real shoppers.
What Recharged adds to your cost-of-ownership toolkit
Making used EV economics more transparent and less risky
Verified battery health
Every vehicle on Recharged comes with a Recharged Score Report that includes battery‑health diagnostics. This helps you avoid cars with unusual degradation and better predict future range and value.
Fair market pricing
Recharged benchmarks each car against the used EV market, so you’re not guessing whether steep depreciation is already priced in, or still waiting to happen.
Financing built for EVs
Recharged offers financing and trade‑in options tailored to EV shoppers, making it easier to move out of a gas car and into a lower‑operating‑cost electric one without a painful transition.
Nationwide delivery
If the right used EV for your budget and driving pattern isn’t local, Recharged offers nationwide delivery, expanding your options beyond what’s parked in your ZIP code.
EV‑specialist guidance
From explaining charging options to helping you estimate your real‑world cost savings, Recharged’s EV specialists act more like consultants than salespeople.
Experience Center in Richmond, VA
If you prefer to kick the tires in person, Recharged operates an Experience Center in Richmond, VA where you can talk through costs, charging, and vehicle options face‑to‑face.
FAQs: Are electric cars cheaper in the long run?
Frequently asked questions about EV long-term costs
Bottom line: are EVs cheaper in the long run?
When you strip away the hype, electric cars are not a universal money printer or an automatic money pit, they’re a technology whose economics reward certain patterns of use. If you drive a fair amount, can charge cheaply at home, and are willing to buy a sensible new EV or, better yet, a well‑vetted used one, there’s a very good chance an electric car will be cheaper for you in the long run than a comparable gas vehicle.
On the other hand, if your driving is light, your electricity is expensive, or you’re tempted by the shiniest, most depreciating EV on the lot, the math may tilt toward a gas or hybrid alternative for now. The key is to run a simple five‑year comparison with your real numbers instead of relying on slogans or averages.
Recharged exists to tilt those numbers in your favor on the used side of the market, by surfacing battery health, pricing in real‑world depreciation, and giving you expert EV support from search to delivery. That way, when you decide to go electric, you’re doing it with a clear view of both the environmental and financial payoff.
