When you compare electric cars vs gas cars cost, the answer isn’t as simple as “EVs are always cheaper.” In 2025, electric vehicles often cost more to buy but less to run. Whether you come out ahead depends on how long you keep the car, how much you drive, energy prices where you live, and whether you buy new or used.
Quick snapshot
On average in 2025, new EVs cost more per year to own than new gas cars because of higher purchase price and depreciation, even though fuel and maintenance are much cheaper. The story changes if you buy used or drive a lot of miles each year.
Electric vs gas car cost in 2025: the big picture
How electric vs gas costs stack up in 2025
Most new EVs still carry a higher sticker price than comparable gas models, and they often depreciate faster. That pushes up the annual cost of ownership on paper. At the same time, electricity and maintenance usually cost far less than gasoline and engine upkeep, especially if you can charge at home. Your job as a shopper is to line these pieces up for your specific situation rather than relying on headlines.
Think in total cost of ownership
When you’re comparing electric and gas, stop thinking only about monthly payments. Instead, add up: purchase price (minus incentives) + financing + fuel or charging + maintenance + insurance + taxes/fees – expected resale value. That’s your true cost picture over the years you plan to own the car.
Purchase price & incentives: where the gap starts
In 2025, most EVs still cost more up front than similar gas cars, though the gap is narrowing. Think of it like this: you’re pre-paying for fuel savings with a higher sticker price.
Typical 2025 new vehicle pricing: EVs vs gas
Ranges vary by brand and trim, but these ballparks show the pattern.
Compact & mid-size cars
- Compact gas sedan: roughly $25,000–$30,000
- Compact electric: roughly $28,000–$35,000
- Example: Gas compact vs similar electric hatchback might differ by $3,000–$7,000 before incentives.
Crossovers & SUVs
- Mid-size gas SUV: around $35,000–$45,000
- Mid-size electric SUV: around $40,000–$55,000
- Example: A plug-in or electric SUV can list $10,000+ above a basic gas version before credits.
On top of MSRP, EV buyers in the U.S. may qualify for a federal clean vehicle credit on eligible models, plus state or utility rebates. For new EVs that meet battery and assembly rules, that credit can be worth up to $7,500. Used EVs can qualify for up to $4,000 in federal credit, subject to income and price caps.
Incentives are powerful, but not guaranteed
Credit amounts, income limits, and vehicle eligibility change over time and can expire. Before you pencil in a tax credit, confirm today’s rules on official government sites or with your tax professional.
If you’re buying used, the picture shifts. EVs have seen steeper price drops than gas cars, in some cases more than 30% decline in a single year for certain models. That means many used EVs are now priced very competitively against similar used gas cars, while still delivering lower running costs. This is one big reason the used EV market has heated up in 2025.
Fuel and energy costs: what you pay per mile
Where EVs really shine is day-to-day energy cost. In 2025, average U.S. gasoline prices have eased somewhat, but electricity has stayed relatively stable. Even with recent bumps in power rates, charging at home typically costs far less per mile than buying gas.
Typical gas car fuel costs
- Average driver: about 15,000 miles per year.
- At roughly 30 mpg, that’s 500 gallons of fuel.
- At an average of about $3.15 per gallon, you’re near $1,575 per year.
- Plenty of drivers in larger SUVs or trucks spend $2,000 or more annually.
Typical EV charging costs
- Many EVs average around 3–4 miles per kWh.
- At 15,000 miles per year, that’s roughly 4,000–5,000 kWh.
- With home electricity around $0.16–$0.17 per kWh, home charging can land near $600–$850 per year.
- That’s often a savings of $800–$1,400 per year versus fueling a comparable gas car.
How public fast charging changes the math
Rely a lot on DC fast chargers and your cost advantage shrinks. Fast charging can cost as much, or occasionally more, than gasoline per mile. If you can charge at home most nights, the EV wins clearly on energy costs. If you can’t, run the numbers carefully.
The more you drive, the more important this fuel vs electricity gap becomes. A commuter logging 20,000–25,000 miles per year can save several thousand dollars on energy over five years with an EV. A low-mileage driver who logs 6,000–8,000 miles a year will see much smaller fuel savings, which makes the higher EV sticker price harder to justify on dollars alone.
Maintenance and repairs: why EVs usually win
Under the skin, an EV has far fewer moving parts than a gas car. No oil, spark plugs, fuel injectors, timing belts, or complex exhaust systems. That simplicity shows up in routine maintenance costs.
Typical annual maintenance: EV vs gas (15,000 miles/year)
Representative 2025 estimates for a mainstream compact or mid-size vehicle out of warranty. Actual costs vary widely by model and region.
| Service category | Gas car (approx. annual) | Electric car (approx. annual) |
|---|---|---|
| Oil & filter changes | $150–$300 | $0 |
| Engine & exhaust-related service | $200–$500 | $0 |
| Brake service | $200–$400 | $100–$200 (less frequent due to regen braking) |
| Fluids (coolant, transmission, etc.) | $150–$300 | $50–$150 |
| General inspections & filters | $200–$300 | $100–$200 |
| Estimated total per year | $900–$1,800 | $300–$600 |
EVs cut out several line items that gas vehicles carry year after year.
EV warranty advantage
Most EVs include 8–10 year battery warranties, often up to around 100,000 miles or more. That coverage can shield you from the most expensive potential repair during the years many owners keep the car.
Over a five-year, 75,000-mile period, it’s common to see EV owners spend several thousand dollars less on maintenance and routine repairs than their gas-driving neighbors. There are exceptions, a damaged high-voltage component, for example, can be pricey, but those events are relatively rare compared with the constant drip of engine-related service on internal-combustion cars.
What about battery replacement?
Out-of-warranty battery replacement is still expensive, though prices keep dropping as pack costs fall. The important point is that most owners don’t reach the end of battery life during their ownership period. When you shop for a used EV, focus on verified battery health data so you know what you’re buying rather than assuming a big bill is around the corner.
Insurance, taxes & fees: the hidden line items
The cost difference between electric cars and gas cars doesn’t stop with fuel and maintenance. Insurance, registration, and local fees can tilt the scales in either direction depending on where you live.
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- Insurance: In many markets, EVs carry somewhat higher premiums, often in the range of 15–25%, because of higher repair bills and the cost of advanced electronics. As body shops gain EV experience and parts prices normalize, that gap is slowly narrowing.
- Registration & road-use fees: Several states have added annual registration surcharges for EVs to make up for lost gas-tax revenue. In some places, that can be $100–$200 per year for an EV owner.
- Emissions & inspection costs: Gas cars may require regular emissions testing, which adds a modest but recurring cost. EVs typically skip those tests altogether.
- Local incentives: Some regions offset these added costs with EV perks, reduced registration fees, HOV-lane access, free or discounted public charging, or local rebates.
How big is the impact?
For most households, insurance and fee differences between EVs and gas cars end up in the hundreds of dollars per year, not thousands. They matter, but they rarely outweigh the combined effect of fuel and maintenance savings when the EV is priced competitively to begin with.
Depreciation and resale: where EVs can sting
If there’s one area where EVs have clearly struggled, it’s depreciation. Rapid technology improvement, shifting incentives, and buyer uncertainty about batteries have pushed down resale values in recent years. In 2024, used EV values dropped several times faster than used gas cars, and that pattern has influenced 2025 pricing as well.
How depreciation affects your wallet
Same car, different powertrain, different value curve.
New EV buyer
- Higher MSRP means more dollars at risk.
- Faster depreciation can erase a big chunk of value in the first 3–4 years.
- Even with fuel and maintenance savings, some new EVs still cost more per year to own than gas equivalents early on.
Used EV buyer
- You benefit from depreciation that someone else already paid.
- Many used EVs now sell at serious discounts vs their original price.
- If the battery is healthy, total cost of ownership can be extremely attractive.
Watch the exit value
When comparing electric vs gas, ask yourself what the vehicle is likely to be worth when you’re ready to sell or trade it. A gas car that holds value better might actually be cheaper per year, even if it uses more fuel, especially if you’re only planning to keep it three or four years.
Used electric cars vs used gas cars: surprise value
If you’re cost-conscious, the most interesting comparison in 2025 isn’t new electric vs new gas. It’s used EV vs used gas car. Because used EV prices fell so sharply in 2024 and into 2025, many lightly used electric cars are now priced in the same ballpark as comparable used gas cars, sometimes lower.
Why used EVs can be a bargain
- Steep first-owner depreciation means you pay far less than original MSRP.
- Many off-lease EVs have relatively low miles and detailed service records.
- You still get lower fuel and maintenance costs vs a gas car.
- Some vehicles remain within their original battery warranty window.
Where used gas cars still win
- Broad selection at every price point and body style.
- More predictable resale values in many segments.
- Refueling is straightforward everywhere, no charging learning curve.
- No concerns about prior fast-charging habits or battery health.
How Recharged helps on used EVs
With a used EV, battery health is the big unknown, unless you measure it. Every vehicle on Recharged includes a Recharged Score Report with verified battery diagnostics, pricing analysis, and expert guidance. That way, you’re not guessing how much life is left in the pack when you compare it against a used gas car.
5-year cost comparison: real-world style scenarios
To decide whether an electric or gas car is cheaper for you, translate the general averages into your situation. The examples below simplify the math, but they’ll show you which levers matter most. Assume 15,000 miles per year for five years, with rough national-average pricing in 2025.
Illustrative 5-year total cost of ownership
Approximate, simplified examples for one mainstream gas car vs one comparable EV. Numbers are rounded, for directional guidance only.
| Category (5 years) | Gas car example | Electric car example |
|---|---|---|
| Purchase price (after any incentives) | $32,000 | $38,000 |
| Financing costs | $4,000 | $4,500 |
| Fuel / charging | $10,000 | $4,000 |
| Maintenance & repairs | $6,000 | $3,000 |
| Insurance | $7,500 | $8,500 |
| Taxes & fees | $3,000 | $3,250 |
| Estimated resale value | -$12,000 | -$14,000 |
| Estimated 5-year total | $50,500 | $47,250 |
When energy and maintenance savings stack up against a higher purchase price, the winner depends on how much you drive and what you paid up front.
How to adapt this to your situation
Plug in your own numbers: local gas prices, electricity rates, your annual mileage, and specific quotes from your insurer. If you drive more than 15,000 miles per year or charge cheaply at home, the EV column usually gets more attractive. If you drive very little or rely heavily on public fast charging, the gas car can pull back ahead.
Who comes out ahead with electric vs gas?
Which powertrain tends to win for different drivers?
Your driving pattern and living situation matter as much as the car itself.
Suburban homeowner
- Has a driveway or garage with overnight charging.
- Drives 12,000–18,000 miles per year.
- Can charge mostly at home on off-peak rates.
- EV often wins on total cost after 5 years, especially if you buy used or snag good incentives.
Urban apartment dweller
- No guaranteed home charging spot.
- Relies on workplace or public charging.
- May pay premium rates on fast chargers.
- Depends: A gas or hybrid may be cheaper and more convenient unless your building offers affordable charging.
High-mileage commuter or road-tripper
- Drives 20,000+ miles per year.
- Can plan charging and use home or low-cost stations often.
- Fuel savings can be dramatic.
- EV is a strong cost winner if charging is convenient and you pick a model that fits your range needs.
Quick checklist before you choose electric or gas
1. Confirm your charging situation
Do you have reliable access to home or workplace charging? If not, map out nearby public chargers and pricing before you commit to an EV.
2. Estimate your annual mileage
Higher mileage favors EVs because fuel savings stack up. Grab last year’s odometer readings or insurance records to get an accurate number.
3. Compare real purchase prices, not stickers
Look at out-the-door prices, including dealer fees, taxes, and any EV incentives you qualify for. A smaller EV price gap makes the decision easier.
4. Get insurance quotes for both options
Ask your insurer to quote specific models, one gas, one electric, using the same coverage. Don’t assume premiums will be similar.
5. Think about how long you’ll keep the car
If you tend to keep vehicles 8–10 years, long-term fuel and maintenance savings matter more. If you trade every 3–4 years, pay close attention to expected resale value.
6. For used EVs, demand battery health data
With a used electric car, battery condition is the heart of the deal. At Recharged, every used EV includes a Recharged Score battery report so you can compare it confidently to a used gas alternative.
FAQ: electric cars vs gas cars cost
Frequently asked questions about EV vs gas costs
Bottom line: how to shop smart in 2025
In 2025, the answer to “Which costs less, electric cars or gas cars?” is: it depends on how you buy and how you drive. New EVs still tend to cost more per year to own than similar new gas cars if you only look at the first few years and ignore incentives. But for many drivers, especially those with home charging, higher annual mileage, and access to good used EV deals, the electric side of the ledger comes out ahead once fuel and maintenance savings are fully baked in.
The smart play is to compare total ownership costs over the years you plan to keep the vehicle, with real numbers for your location and driving pattern. If you’re EV‑curious but cautious, starting with a used electric car with verified battery health can be a very efficient way into ownership. That’s exactly the gap Recharged is built to fill, with expert EV guidance, Recharged Score battery diagnostics, transparent pricing, and flexible financing so you can choose the powertrain that truly costs less for you, not just on day one, but for as long as you own the car.
