You’ve probably heard both claims: that electric cars are more expensive and that they’re cheaper once you "do the math." In 2025, the truth is somewhere in between. Upfront, many new EVs still cost more than comparable gas cars, but lower fuel and maintenance costs can flip the script over time, especially if you buy used or qualify for incentives.
What this guide covers
We’ll walk through purchase price, fuel, maintenance, insurance, depreciation, and incentives, plus how used EVs and tools like the Recharged Score can make electric cars significantly cheaper to own than they look on paper.
Short answer: Are electric cars more expensive?
New vs used, short term vs long term
Where EVs cost more, and where they pull ahead
Upfront purchase price
On average, new EVs still carry a higher sticker price than comparable gas cars in 2025, largely because of battery costs and technology features. However, aggressive discounts on some models and remaining federal/state incentives narrow that gap, and used EVs can undercut similar gas cars.
Ongoing running costs
EVs are typically much cheaper to run. Electricity usually costs less per mile than gasoline, and EVs have far fewer parts to service. Over 5–10 years, many drivers save thousands on fuel and maintenance, even if the car cost more upfront.
The quick takeaway
In 2025, many new EVs are still more expensive to buy but can be cheaper to own over 5–10 years, especially if you drive more than 10,000–15,000 miles per year, can charge at home, or buy a well‑priced used EV with a healthy battery.
Upfront price: New and used EVs in 2025
The first place electric cars look more expensive is the window sticker. Multiple 2024–2025 analyses put the average transaction price of a new EV several thousand dollars higher than a comparable gas car, even as the gap narrows. Some estimates show new EVs averaging in the low–to–mid $50,000s versus mid–$30,000s for gas cars, depending on segment and incentives.
Snapshot: 2025 cost factors for new EVs vs gas
Mind the incentive rules
Which EVs qualify for the full federal credit changes as rules tighten around battery materials, pricing, and income limits. Always confirm eligibility with your dealer and on the official IRS/DOE tools before you assume a $7,500 discount.
New EV vs new gas car
Today, a well‑equipped compact or midsize gas SUV might land around $35,000–$40,000. A comparable EV might be closer to $45,000–$50,000 before incentives. If you qualify for the full federal credit and maybe a state rebate, that gap can shrink dramatically, or in some cases disappear.
However, higher MSRPs and interest rates mean that your monthly payment for a new EV can still be higher than for a gas equivalent, even after credits. That’s one reason total-cost-of-ownership studies increasingly show a mixed picture: about half of current EVs still cost more to own over five years than their gas counterparts, largely because of purchase price and depreciation.
The wild card: used EV pricing
Fast depreciation on many first- and second‑generation EVs has pushed used EV prices down sharply. That’s challenging for original owners, but it creates opportunity for used‑EV buyers. In many cases, a 3–5‑year‑old EV can be priced at or below a similar gas model while still offering big savings on fuel and maintenance.
This is where Recharged focuses: giving shoppers a transparent way to compare used EVs with gas cars, aided by verified battery health data and market‑correct pricing through the Recharged Score.
Fuel vs electricity: What you’ll actually spend to drive
Fuel is where EVs start to make up ground. Electricity prices have crept up in many regions, but so have gasoline prices. Most current analyses still find that EVs cost significantly less per mile to “fuel”, especially if you charge at home and avoid premium fast-charging for daily use.
Typical annual fuel vs electricity cost (U.S. averages, 2025)
Illustrative example assuming ~12,000–15,000 miles driven per year.
| Factor | Gas vehicle | Electric vehicle |
|---|---|---|
| Energy price (national typical) | ~$3.20–$3.70 per gallon | ~$0.15–$0.17 per kWh |
| Efficiency assumption | 30 mpg | 2.5–3.0 miles per kWh |
| Cost per 100 miles | ~$11–$14 | ~$4–$5 |
| Estimated annual cost | ~$1,300–$2,200 | ~$650–$800 |
Actual costs vary by your local gas and electricity rates, vehicle efficiency, and charging habits.
How to tilt the math in your favor
Charging overnight on time‑of‑use (off‑peak) rates, using workplace charging, and relying on home Level 2 charging for most miles can push your per‑mile cost dramatically below a gas car, sometimes cutting your "fuel" bill by more than half.
Public DC fast chargers are more expensive, sometimes close to gas‑equivalent costs per mile. The key is how you use your car: if you road‑trip constantly and depend on fast charging, your savings shrink. If you mostly charge at home, your EV becomes a very cheap commuter to run.
Maintenance and repairs: Where EVs really save money
EVs win big on maintenance. With no engine oil, spark plugs, timing belts, or exhaust systems, and with regenerative braking reducing brake wear, there’s simply less to service. Recent data suggests EVs can cost 30–50% less to maintain over time than gas cars, even after accounting for higher labor rates at some EV‑specialist shops.
- No oil changes or engine tune‑ups
- Far fewer moving parts (no transmission in many EVs, no exhaust, fewer fluids)
- Regenerative braking extends brake pad and rotor life
- Many software issues can be fixed via over‑the‑air updates instead of shop visits
Typical annual maintenance costs (illustrative)
Actual costs will vary by brand, model, and driving conditions, but the pattern is consistent: EVs generally need less routine service.
| Item | Gas car (per year) | EV (per year) |
|---|---|---|
| Oil changes, filters | $150–$300 | $0 |
| Engine & exhaust work (average) | $200–$400 | $0 |
| Brake service | $200–$400 | $50–$150 |
| Fluids & miscellaneous | $300–$600 | $100–$200 |
| Estimated total | $900–$1,800 | $250–$450 |
Over five years, the difference can easily reach several thousand dollars in favor of an EV.
What about expensive EV repairs?
Yes, some EV repairs, especially collision damage involving the battery, can be costly. But they’re also relatively rare events. For most owners, the day‑to‑day reality is fewer shop visits, less routine service, and fewer surprise breakdowns compared with aging gas cars.
Insurance, taxes, and fees: The “hidden” costs
Here’s where things get more nuanced. Many insurers still charge higher premiums for EVs because the cars are newer, carry a higher MSRP, and require specialized parts and labor. Surveys suggest EV insurance can run 10–20% higher than for a comparable gas vehicle, although this gap is narrowing as more EV‑ready repair shops come online.
Visitors also read...
- Insurance: EVs can cost more to insure, especially higher‑end models with expensive battery packs and sensors. Shopping around for EV‑friendly carriers and usage‑based policies can help.
- Registration & road‑use fees: Some states add extra annual fees for EVs to replace lost gas‑tax revenue. These are usually in the low hundreds of dollars.
- Home charging setup: Installing a Level 2 charger at home can run from a few hundred dollars for a simple plug‑in unit to $1,000+ if electrical upgrades are needed, sometimes offset by utility rebates.
Watch state‑level EV fees
A growing number of states impose additional EV registration fees. They won’t erase your fuel savings, but they do nibble around the edges. When you’re comparing costs, make sure to include any EV‑specific fees your state charges.
Depreciation and resale value: Why used EVs can be bargains
Depreciation is where the question “are electric cars more expensive?” gets tricky. Several cost‑of‑ownership studies in 2025 point out that more than half of current EV models still cost more to own over a five‑year horizon than comparable gas vehicles, largely because EVs often depreciate faster.
Why the faster drop in value? A few reasons: technology moves quickly, some early models have limited range, and shoppers worry about battery replacement costs. The result is that new EV buyers can take a steep hit in the first 3–5 years. But for you as a used‑EV shopper, that same dynamic creates opportunities to buy "over‑spec’d" cars, long range, lots of tech, for surprisingly affordable prices.
Use depreciation to your advantage
If you buy new, plan to keep the EV long enough for fuel and maintenance savings to catch up. If you buy used, lean into the depreciation: you’re letting someone else absorb the biggest drop while you collect the lower running costs.
Real‑world examples: When an EV is cheaper (and when it isn’t)
Three quick scenarios
How the math shakes out for different drivers
High‑mileage commuter
Profile: 70‑mile daily commute, home charging, keeps cars 8–10 years.
Result: This driver is a great fit for an EV. Fuel and maintenance savings stack up quickly, and the longer ownership period helps offset higher upfront cost and depreciation.
Urban, low‑mileage driver
Profile: Drives 5,000–7,000 miles per year, pays for city parking, limited home‑charging access.
Result: Savings are smaller. A modest, efficient gas or hybrid car may be cheaper overall unless the driver can charge cheaply at home or work and finds a well‑priced used EV.
Frequent road‑tripper
Profile: Multiple cross‑country trips, depends heavily on fast charging, values minimal downtime.
Result: An EV can still work, but high fast‑charging use reduces savings, and charging stops add time. The decision tilts more on convenience preferences than pure cost.
What the big studies say
Recent independent cost‑of‑ownership analyses show a split picture: a minority of EVs are already cheaper to own than comparable gas cars over five years, while many are still more expensive once you factor in purchase price and depreciation. But almost all find lower energy and maintenance costs for EVs, those savings are real.
How used electric cars change the math
Because depreciation hits EVs hard in the early years, the used market is where electric cars often stop being "more expensive" and start looking like savvy buys. A 3–6‑year‑old EV can offer plenty of remaining battery life, modern safety and infotainment tech, and significantly lower running costs, all for a price that rivals or beats similar used gas models.
Why used EVs can be cheaper overall
- Lower purchase price: The first owner already absorbed the steepest depreciation.
- Lower running costs: You still benefit from cheaper electricity and reduced maintenance.
- Modern tech at a discount: Features like advanced driver‑assist and large touchscreens are common even on older EVs.
The catch: battery health uncertainty
The big question with any used EV is "How healthy is the battery?" Range loss varies by model, climate, and how the car was charged. A car that looks like a bargain can be less appealing if its real‑world range has dropped too far below original.
This is why Recharged provides a Recharged Score Report with every vehicle. It includes independent battery health diagnostics, fair‑market pricing, and expert guidance so you can tell whether you’re getting a deal, or just someone else’s range anxiety.
Checklist: How to compare EV vs gas costs for your situation
Step‑by‑step cost comparison
1. Estimate your annual mileage
Write down how many miles you realistically drive each year. Higher mileage makes EV savings on fuel and maintenance more powerful.
2. Check local fuel and electricity prices
Look up your current gasoline price and your home electricity rate (including time‑of‑use plans). Use these to estimate cost per mile for each vehicle.
3. Include incentives and fees
For the EV, factor in any federal tax credit, state rebates, and utility charger rebates. Also include any extra state EV road‑use fees.
4. Compare insurance quotes
Get real quotes for both vehicles with the same coverage. Don’t assume EV insurance is always higher, shop around.
5. Add realistic maintenance assumptions
For the gas car, include routine services like oil changes, tune‑ups, and brake work. For the EV, plan mostly for tires, occasional brake service, and inspections.
6. Think about how long you’ll keep the car
If you tend to replace cars every 2–3 years, depreciation looms large and many EVs may look more expensive. If you keep cars for 7–10 years, EVs have more time to pay you back.
7. For used EVs, demand battery data
Before you buy, review a battery health report. Recharged’s <strong>Score Report</strong> shows verified battery condition so you can compare apples to apples with a used gas car.
FAQ: Common questions about EV costs
Frequently asked questions about whether EVs are more expensive
Bottom line: So, are electric cars more expensive?
If you only look at sticker price, it’s easy to conclude that electric cars are more expensive. In 2025, many new EVs still cost more upfront than their gas counterparts, and faster early depreciation means some five‑year cost studies still favor traditional engines.
But once you back up and look at the full picture, fuel, maintenance, incentives, and especially the used market, the story changes. For the right driver and the right vehicle, an EV can be meaningfully cheaper to own over 5–10 years, even if it costs more to buy. For other drivers, particularly low‑mileage or heavy fast‑charging users, a gas or hybrid vehicle may still pencil out better today.
The key is to run the numbers for your situation: your mileage, your local energy prices, your insurance quotes, and your time horizon. If you’re looking at a used EV, make sure battery health and pricing are transparent. That’s exactly what Recharged was built for, helping you compare options with clear data instead of guesswork, so you can decide whether your next car should plug in or fill up.
