When you start shopping, the cost of an electric car can feel confusing. The sticker price is one thing, but then you hear about tax credits, cheaper "fuel," higher insurance, home chargers and battery life. The only question that really matters is this: over the years you own it, will an EV cost you more or less than a comparable gas car?
Why EV cost math feels tricky
Electric vehicles often cost more upfront but less to run. That flips the usual buying instinct: instead of focusing only on the purchase price, you need to look at total cost of ownership, purchase, financing, charging, maintenance, insurance and resale value.
How much do electric cars cost today?
New vehicle prices in 2025: EV vs gas
In late 2025, the average new electric car in the U.S. transacts in the mid–$50,000 range, while the average new gas vehicle is in the upper $40,000s. There are bright spots at the lower end: a handful of compact EVs and crossovers start around $30,000–$35,000, while premium models and larger SUVs can easily climb past $70,000.
Used EVs are a very different story. As early leases roll back and technology improves, depreciation has pushed many 3–6‑year‑old electric cars into the $15,000–$30,000 range. That’s where the value equation gets compelling, especially when you have a clear view of battery health and fair market pricing, like you get with a Recharged Score Report on every vehicle sold through Recharged.
Important in 2025: incentive changes
Federal tax credits that once offset EV sticker prices are being phased out and are scheduled to end for many buyers by late 2025. That makes understanding used EV pricing and lifetime cost savings more important than ever if you’re shopping on a budget.
Upfront cost: new vs. used electric cars
Upfront EV cost comparison
How much you’ll typically pay to get in the driver’s seat
New electric car
Typical price range: $35,000–$70,000+ before taxes and fees.
- Latest tech, longest ranges.
- Full factory warranty.
- Higher depreciation in the first 3–4 years.
Used electric car
Typical price range: $15,000–$40,000 depending on age, range and brand.
- Much lower upfront cost.
- Some factory battery warranty often remains.
- Battery health varies a lot, verification is crucial.
If you’re focused on reducing the total cost of an electric car, buying used is often the sweet spot. Someone else has already taken the steepest depreciation hit, yet modern EVs from 2019 onward still offer usable range and safety tech. The key is confirming that the battery pack is healthy and that you’re paying fair market value, exactly what Recharged’s battery diagnostics and pricing tools are designed to do.
Tip: look beyond MSRP
When you compare a new gas car to a new EV, remember to total up monthly payment, estimated fuel or charging cost, and insurance, not just the MSRP. Over a 5‑year span, a higher EV payment can be offset by much lower running costs.
How much does it cost to charge an electric car?
In 2025, U.S. residential electricity averages roughly 17¢ per kWh, though rates vary widely by state, from the low teens in places like Washington or Utah to 30¢+ in parts of California and the Northeast. Because most EV drivers do the majority of their charging at home, your local rate is a big driver of your real-world fuel cost.
Typical electricity cost to charge an EV at home
Approximate cost to add 250 miles of range at different electricity rates, assuming an efficient EV using 28 kWh per 100 miles.
| Electricity rate (¢/kWh) | Cost per kWh ($) | Energy for 250 miles (kWh) | Approx. charging cost |
|---|---|---|---|
| 13¢ | $0.13 | 70 kWh | ≈ $9.10 |
| 17¢ | $0.17 | 70 kWh | ≈ $11.90 |
| 25¢ | $0.25 | 70 kWh | ≈ $17.50 |
| 32¢ | $0.32 | 70 kWh | ≈ $22.40 |
Actual costs depend on your vehicle’s efficiency and your exact utility rate.
Compare that with gasoline: at about $3.15 per gallon and 30 mpg, 250 miles would cost roughly $26 in fuel. Even in a high‑electricity‑cost state, home charging usually beats the pump on a per‑mile basis.
Public DC fast charging costs more
Rapid DC fast chargers along highways typically charge by the kWh or by the minute at a higher rate than your home, often the equivalent of paying $4–$6 per “gallon.” That’s fine for road trips, but relying on DC fast charging for daily use can erase much of an EV’s fuel‑cost advantage.
Home charging equipment and installation costs
To unlock the lowest cost of owning an electric car, you’ll want Level 2 home charging, a 240‑volt circuit that can add 20–40 miles of range per hour. That requires both charging hardware and, in many homes, some electrical work.
Typical home charging cost ranges
Hardware plus installation for a Level 2 home setup
Level 2 charger hardware
Cost: $400–$900 for a wall‑mounted unit from a reputable brand.
Hard‑wired units are common; plug‑in models may be an option if you already have a 240V outlet.
Electrical work
Cost: $300–$1,500+ depending on panel capacity and distance to your parking spot.
Simple installations are a few hundred dollars; service upgrades or long conduit runs add cost.
Total typical spend
All‑in: roughly $700–$2,500 for most homeowners.
Local rebates or utility programs can cut this substantially, so check incentives before you install.
Safety first with 240V work
Adding a 240‑volt circuit isn’t a DIY weekend project. Always use a licensed electrician, and pull permits where required. A poor installation can create fire risk and may cause insurance headaches later.
Apartment and condo dwellers face a different equation. If you can’t install a dedicated charger, look for properties with shared Level 2 charging or plan to rely on workplace and public stations. In those cases, your per‑mile "fuel" cost may be slightly higher but still competitive with gas, especially if your driving is mostly local.
Maintenance and repair costs: EV vs gas
Electric cars have far fewer moving parts than internal‑combustion vehicles. No oil changes, no spark plugs, no timing belts, no exhaust system, and a much simpler drivetrain. That simplicity shows up in the maintenance column.
Typical gas car maintenance
- Oil and filter changes 2–3 times per year.
- Regular tune‑ups, spark plugs and emissions system checks.
- Complex exhaust and cooling systems to maintain.
- More fluids: transmission, power steering, coolant.
Typical EV maintenance
- Tire rotations and alignments (EVs are heavier).
- Cabin air filters and brake fluid service.
- Occasional coolant for the battery/drive system.
- Far fewer scheduled services overall.
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Where EVs usually win
Analyses of ownership costs consistently find that EV drivers spend hundreds of dollars less per year on maintenance than comparable gas‑car owners. Over five years, it’s common to save several thousand dollars simply by avoiding oil changes and major engine repairs.
Battery longevity is the big question many shoppers have. Most manufacturers back their battery packs with 8‑year/100,000‑mile (or better) warranties, and real‑world data shows many packs holding up well past that. Still, battery health varies by model, climate and use. That’s why Recharged invests in Recharged Score battery diagnostics, so you see objective battery‑health data before you buy a used EV, avoiding unpleasant surprises later.
Insurance, registration and other fees
On the non‑mechanical side of the ledger, EVs can cost more to insure. Parts and repairs are still catching up to demand, and higher purchase prices mean higher replacement values. Industry data in 2025 shows EV insurance averaging roughly 20–25% higher than comparable gas models, or a few hundred dollars more per year for many drivers.
- Some states charge extra annual registration fees for EVs to make up for lost gas‑tax revenue. Expect anywhere from $50–$250 per year depending on where you live.
- Tire costs can be modestly higher on EVs because many use specialized low‑rolling‑resistance or high‑load tires.
- Parking, toll and HOV‑lane perks for EVs can offset some of these costs but are changing as EV adoption grows.
Remember the whole picture
Higher insurance or registration fees can sting, but they’re usually overshadowed by savings on fuel and maintenance over a multi‑year ownership window. Run the math for your specific situation rather than assuming one line item tells the whole story.
Incentives, tax credits and local perks
In 2025, incentives are a moving target. Federal credits that once offered up to $7,500 on new EVs and $4,000 on used models have been tightened and are scheduled to end for many shoppers by late 2025. Some state and utility programs remain, especially for home charging equipment, but you can no longer count on big national rebates to close the upfront price gap.
Where incentives still help with EV costs
Check current programs before you sign any paperwork
State EV rebates
Some states offer cash rebates or tax credits on new or used electric vehicles. Availability changes frequently, so verify what’s active in your state this year.
Home charger incentives
Utilities and state energy offices often provide rebates for Level 2 charger hardware or installation, sometimes covering several hundred dollars of your cost.
Perks & privileges
HOV lane access, discounted tolls or reduced parking fees for EVs remain in some regions and can save frequent commuters meaningful time and money.
Plan your purchase timing
Because incentive rules are changing, it pays to talk to a tax professional and check your state energy office or utility website before you buy. If you’re considering a used EV, a well‑priced vehicle with a strong battery may beat chasing a shrinking federal credit.
Five-year total cost of ownership example
To make all of this concrete, let’s compare a simplified 5‑year cost of ownership for a mainstream compact SUV, one electric, one gasoline, both driven 15,000 miles per year. These are illustrative ballpark numbers; your real costs will depend on model, region and driving pattern.
Illustrative 5‑year cost: EV vs gas compact SUV
Approximate costs over 5 years and 75,000 miles. Assumes home charging for the EV most of the time.
| Category | Electric SUV | Gas SUV |
|---|---|---|
| Purchase price (after any incentives) | $50,000 | $42,000 |
| 5‑year depreciation | $22,000 | $18,000 |
| Fuel/energy (5 yrs) | ≈ $3,000 (home charging) | ≈ $11,000 (gasoline) |
| Maintenance & repairs | ≈ $3,000 | ≈ $5,500 |
| Insurance | ≈ $7,500 | ≈ $6,000 |
| Registration & fees | ≈ $1,000 | ≈ $800 |
| Estimated 5‑year total | ≈ $36,500 over depreciation | ≈ $41,300 over depreciation |
Use this as a framework for your own math, not a quote for any specific model.
In this scenario, the EV costs more to buy but saves thousands in fuel and maintenance. Over five years, total ownership costs end up in the same ballpark, or even tilt in the EV’s favor, despite the higher sticker price. If you opt for a well‑priced used electric car instead of new, the economics can look even better.
For most drivers who can charge at home, the question isn’t whether an EV will save money over its lifetime, it’s how long you plan to keep it and what you pay upfront.
How to lower the cost of owning an electric car
Practical ways to cut your EV costs
1. Buy the range you actually need
Long‑range batteries are fantastic, but they cost more. If your daily driving is 40–60 miles and you road‑trip only occasionally, a modest‑range EV paired with a good charging plan can save thousands upfront.
2. Prioritize battery health on used EVs
Battery condition is the number‑one factor in used EV value. Look for vehicles with documented state‑of‑health testing, like the Recharged Score Report you get with every EV on Recharged, so you know what you’re paying for.
3. Charge off‑peak when possible
Many utilities offer cheaper overnight or off‑peak rates. Use your car’s charge‑scheduling feature to automatically charge when electricity is least expensive and lock in the best cost per mile.
4. Right-size your home charger
A 48‑amp charger isn’t always necessary. Matching your charger’s power level to your car’s onboard charger and your daily driving can keep hardware and installation costs reasonable.
5. Shop insurance before you buy
Get quotes on specific EV models you’re considering. Insurance costs vary more than you’d expect between vehicles, and a few phone calls can save you hundreds per year.
6. Consider a quality used EV
Let someone else take the first few years of depreciation. A thoroughly inspected used EV with verified battery health can deliver near‑new driving experience at a much lower monthly cost.
Cost of an electric car: FAQ
Frequently asked questions about electric car costs
Bottom line: is an electric car worth the cost?
When you add everything up, purchase price, charging, maintenance, insurance, incentives and resale value, the true cost of an electric car depends on how you drive and how long you keep your vehicles. If you can charge at home and you plan to own the car for several years, an EV can match or beat the total cost of a comparable gas model while delivering a smoother, quieter drive and lower emissions.
Where EVs really shine is in the used market. A carefully selected used electric car with a healthy battery often delivers new‑car refinement at a fraction of the price, especially when you use tools that verify battery condition and fair value. That’s the approach Recharged is built around, combining Recharged Score reports, expert EV guidance, financing, trade‑in options and nationwide delivery to make EV ownership simpler and more predictable from start to finish.
If you’re ready to run the numbers on your own situation, start by estimating your annual miles, local electricity rate and how often you could charge at home. From there, compare a few specific EVs and gas models side by side. With clear data, and the right partner, you can choose the electric car that fits both your lifestyle and your budget.
