If you’re shopping in 2025, you’ve probably heard that electric cars still cost more than gas cars. But how much more expensive are electric cars really, and does that extra upfront cost come back to you in lower running costs, or are you just paying a “green premium”? This guide breaks down the latest data on sticker prices, ownership costs, incentives, and the growing used EV market so you can see what’s genuinely cheaper for you, not just in headlines.
Short answer
New electric cars in 2025 typically cost about $8,000–$11,000 more up front than comparable gas vehicles before incentives. Over 5–6 years, some EVs end up cheaper overall thanks to lower fuel and maintenance costs, but more than half are still more expensive to own once you add purchase price, depreciation, insurance, and fees.
How Much More Expensive Are Electric Cars in 2025?
New EVs vs Gas Cars: 2025 Price Snapshot
Across the U.S. market in 2025, new electric vehicles remain more expensive at the sticker level. Recent pricing analyses show the average new EV selling around the mid‑$50,000s, versus the upper‑$40,000s for new gas vehicles. Other studies put the EV premium at roughly $8,000 over a close gas equivalent when you compare model‑to‑model rather than whole‑market averages.
That gap isn’t uniform. Some mass‑market EVs now land within a few thousand dollars of their gas peers, especially when discounts and tax credits apply. At the other end of the spectrum, electric versions of pickups and large SUVs can still be $15,000–$20,000 higher in MSRP than their gas counterparts.
Don’t forget trim levels
Many EVs come loaded with tech that’s optional on gas models (advanced driver aids, big infotainment screens, premium audio). When you match equipment closely, the effective price gap can be smaller than the base‑MSRP difference suggests, but it rarely disappears altogether on new vehicles.
How the EV Price Premium Varies by Segment
To understand how much more expensive electric cars are, you have to compare like‑for‑like. In 2024–2025 segment data, the EV premium changes a lot by vehicle type:
Typical New EV vs Gas Price Gaps by Segment (2024–2025)
Approximate starting MSRPs and gaps based on recent U.S. market data. Actual prices vary by brand, trim, and incentives.
| Segment | Avg Gas MSRP | Avg EV MSRP | Approx Gap | Notes |
|---|---|---|---|---|
| Subcompact car | ≈$22,500 | ≈$31,900 | +$9,000 | Few EVs; many are premium‑leaning. |
| Compact SUV | ≈$35,700 | ≈$53,000 | +$17,000 | One of the largest gaps in the market. |
| Midsize sedan | Upper $20Ks–$30Ks | Low‑to‑mid $40Ks | +$10,000–$15,000 | Think Camry/Accord vs Tesla Model 3, Hyundai Ioniq 6. |
| Midsize SUV | ≈$49,000 | ≈$72,000 | +$23,000 | Heavily influenced by luxury EVs. |
| Full‑size truck | ≈$64,800 | ≈$76,500 | +$12,000 | Electric pickups still command a strong premium. |
These are ballpark figures, not quotes, always compare current pricing for the specific models you’re considering.
In plain English: electric versions of popular SUVs and trucks can be tens of thousands more expensive on paper. Smaller EVs and sedans typically sit $3,000–$8,000 higher than similar gas cars, while mainstream compact SUVs can see five‑figure gaps before incentives.
Luxury vs mainstream
Because many early EVs were premium models, average EV prices are skewed higher. As more mainstream electric crossovers and compact cars arrive, that average price gap is shrinking, but it hasn’t vanished yet.
Are EVs Still More Expensive After 5–6 Years?
Sticker price only tells part of the story. To answer whether electric cars are really more expensive, you have to look at total cost of ownership (TCO) over several years: purchase price, finance charges, fuel or electricity, maintenance and repairs, insurance, registration fees, and depreciation.
Recent 5‑year cost‑of‑ownership studies show a mixed picture:
- About 44% of current EV models come out cheaper to own over five years than comparable gas cars, largely because of fuel and maintenance savings.
- The remaining 56% of EVs still cost more overall, mostly due to higher MSRPs, steeper depreciation, and higher insurance premiums.
EVs vs gas: the 5‑year pattern
On average, EVs win on operating costs (fuel + maintenance) but lose on up‑front cost and depreciation. Whether an EV is more expensive overall depends on how long you keep it, how much you drive, and whether you buy new or used.
Fuel and Maintenance: Where Electric Cars Pay You Back
The big financial advantage of EVs is simple: electricity is usually cheaper per mile than gasoline, and EVs have fewer parts that wear out. That’s why you see so many claims that “EVs pay for themselves over time.” The reality is more nuanced, but the savings are real.
Typical Running Costs: Electric vs Gas
Approximate U.S. averages; your numbers will depend on local fuel and power prices.
Energy (Fuel) Costs
Gas car: With gasoline around the low‑$3 range per gallon and a 30‑mpg car, you’re paying roughly 10–11 cents per mile.
EV: With electricity around the mid‑teens per kWh and typical efficiency of 3–4 miles/kWh, you’re closer to 3–5 cents per mile when you mainly charge at home.
Public DC fast charging can narrow that gap; home charging is where the best savings live.
Maintenance & Repairs
EVs avoid many common service items:
- No oil changes or spark plugs
- Fewer moving parts in the drivetrain
- Regenerative braking extends brake life
Studies consistently show 30–40% lower annual maintenance costs for EVs vs similar gas cars, though out‑of‑warranty repairs on early EVs can be costly.
Add those together and an EV driven 12,000–15,000 miles per year can easily save hundreds of dollars per year in energy and routine maintenance compared with a gas car, sometimes more than $1,000 per year if you’re coming out of a thirsty SUV or truck.
Where savings really add up
If you mostly charge at home on a standard residential rate or off‑peak plan, drive more than 10,000 miles a year, and avoid expensive DC fast charging for daily use, your fuel savings can largely offset the EV price premium over 5–7 years, especially on efficient crossovers and sedans.
How Incentives Change the Math, And What Happens When They End
So far we’ve talked about prices before incentives. In 2025, federal and state programs still play a big role in how much more expensive an electric car feels when you sign the paperwork, but the landscape is changing fast.
- Many new EVs still qualify for a federal tax credit up to $7,500 in 2025, depending on where the vehicle and its battery are built, price caps, and your household income.
- Eligible used EVs can unlock up to $4,000 in federal credits, which helps narrow the gap even more on pre‑owned models.
- Several states layer on additional rebates or tax breaks, often $1,000–$2,500, plus perks like HOV lane access or reduced registration fees.
- Recent federal budget changes phase out or reshape some EV tax incentives by late 2025, which will make new EVs feel more expensive if no new programs replace them.
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Time‑sensitive discounts
If you’re banking on a federal credit to close the EV price gap, look closely at eligibility rules and timing. Income limits, vehicle price caps, and final‑assembly rules all matter, and some incentives are scheduled to sunset or be reworked after 2025.
The practical takeaway: incentives can erase several thousand dollars of the EV premium on day one, and in some cases flip an EV from “more expensive” to “about the same” as a gas car over a 5‑year horizon. But you can’t assume every EV qualifies or that today’s incentives will be around tomorrow.
Used EVs vs Used Gas Cars: Where the Real Deals Are Emerging
So far we’ve focused on new vehicles, where EVs are clearly more expensive. The used market looks very different, and this is where shoppers are starting to find genuine bargains, especially if they’re comfortable buying a 3‑ to 6‑year‑old EV with a solid battery warranty.
Why used EVs can be cheaper
- Faster depreciation: Many EVs have lost value more quickly than gas cars from 2020–2024, largely due to tech changes and price cuts on new models.
- Battery anxiety scares some buyers: Concern about degradation and replacement costs pushes resale prices down, sometimes more than the data justifies.
- Limited demand in some regions: In areas with fewer chargers, used EV prices often sit lower just to move inventory.
Why used EVs can still be risky
- Battery replacement is expensive: A pack replacement can run into the five figures if it falls outside warranty.
- Range expectations changed quickly: A car that had great range in 2019 may feel tight for today’s road‑trip habits.
- Not all used EVs qualify for incentives: You’ll want to confirm eligibility before counting on a tax credit.
How Recharged helps on used EVs
Every vehicle on Recharged comes with a Recharged Score Report that includes verified battery health and fair‑market pricing. That makes it easier to know whether a specific used EV is actually a deal compared with a similar gas car, and to avoid cars whose batteries are likely to cost you big later.
Real‑World Example: How the Numbers Stack Up
To make this less abstract, let’s look at a simplified example of two comparable compact SUVs: one gas, one electric. These are rough, illustrative numbers based on recent pricing and cost‑of‑ownership studies; your results will vary by model and location.
Illustrative 5‑Year Cost Comparison: Gas SUV vs Electric SUV
Approximate 5‑year costs assuming 15,000 miles per year, typical U.S. fuel and power prices, and no major repairs beyond normal maintenance.
| Category (5 years) | Gas Compact SUV | Electric Compact SUV | EV Difference |
|---|---|---|---|
| Purchase price (MSRP) | $36,000 | $48,000 | + $12,000 |
| Federal/state incentives | $0 | −$7,500 | EV effectively +$4,500 after incentives |
| Fuel / energy | $9,000 | $3,500 | EV saves ≈$5,500 |
| Maintenance | $4,000 | $2,600 | EV saves ≈$1,400 |
| Insurance & fees | $7,000 | $8,000 | EV costs ≈$1,000 more |
| Depreciation | $12,000 | $18,000 | EV loses ≈$6,000 more value |
| Estimated 5‑yr total | $68,000 | $73,600 | EV ≈$5,600 more expensive overall |
This is an example, not a quote. Always run numbers for the specific vehicle and incentives available to you.
In this scenario, even with strong fuel and maintenance savings, the electric SUV still costs roughly $5,000–$6,000 more to own over five years because of higher purchase price and depreciation. Some EVs do better, especially efficient models with strong residual values and full incentives, but many follow a similar pattern today.
When the EV wins this comparison
Shift the assumptions and the story can flip: buy the EV used at a steep discount, keep it 8–10 years instead of 5, drive more miles per year, and charge mostly at home, and the numbers can easily move in the EV’s favor.
Who Actually Saves Money With an Electric Car?
Given all this, when is an electric car “more expensive,” and when is it actually the cheaper move? It comes down to mileage, time horizon, charging access, and how you buy.
Scenarios: When EVs Cost More vs Less
Use these as starting points and layer in your own numbers.
Daily commuter, home charging
If you drive 12,000–15,000 miles a year, have reliable home charging, and plan to keep the car 7+ years, an EV is very likely to be cheaper or cost‑neutral overall, especially if you buy used or qualify for incentives.
Urban driver, public charging
If you mostly use public fast chargers at higher per‑kWh prices, drive fewer miles, and park on‑street, your running‑cost advantage shrinks. In that case, the EV is more likely to remain more expensive overall.
Low‑mileage or short‑term ownership
If you drive under 8,000 miles per year or tend to swap cars every 3–4 years, you’re less able to recoup the EV premium. High depreciation and limited fuel savings can make a gas car financially simpler in the short run.
Checklist: Running the Numbers Before You Buy
Before you decide that electric cars are “too expensive” or automatically cheaper, it’s worth doing a quick, personal cost check. Here’s a practical framework you can work through in 15–20 minutes.
Personal EV Cost Reality Check
1. Compare out‑the‑door prices, not just MSRP
Ask for <strong>full, out‑the‑door quotes</strong> on both the EV and gas alternatives, including destination, dealer fees, and any mandatory add‑ons. That’s your true starting gap.
2. Confirm every incentive you actually qualify for
Use the IRS tool and your state’s website to confirm <strong>federal and state EV incentives</strong>, then subtract those from the EV’s price. Don’t assume the maximum credit applies to your income or that every EV on the lot qualifies.
3. Estimate your annual mileage and energy costs
Look at the last year of your driving (or a normal year) and multiply by <strong>cents per mile</strong> for gas vs electricity. Many utilities publish EV rate calculators; they’re worth a look.
4. Factor in insurance and registration
Get actual insurance quotes for the specific VINs or at least models you’re comparing. EVs often carry <strong>higher premiums</strong>, and some states handle registration fees differently for electric vehicles.
5. Think in years, not months
Instead of just staring at the monthly payment, ask your lender or a calculator to show <strong>5‑year or 6‑year total payments</strong>, plus estimated resale value. That’s the number that tells you whether the EV is really more expensive.
6. Consider a used EV with verified battery health
If new‑EV pricing doesn’t pencil out, look at <strong>3–6‑year‑old EVs</strong>. On Recharged, every car comes with a <strong>Recharged Score Report</strong> showing battery health and fair‑market pricing, so you can see how a particular used EV compares financially to a similar used gas car.
FAQ: Common Questions About EV Costs
Frequently Asked Questions About EV Pricing and Costs
The Bottom Line: Are Electric Cars Too Expensive?
In 2025, the honest answer is that new electric cars are still more expensive on average, often by thousands of dollars, and for more than half of current models, that higher sticker price and steeper depreciation still outweigh fuel and maintenance savings over a typical 5‑year window.
At the same time, the gap is shrinking, and for the right driver, especially someone with home charging, higher annual mileage, and eligibility for incentives, an EV can already be cost‑competitive or outright cheaper than a similar gas car. That’s particularly true in the used market, where faster depreciation has created some of the most attractive deals.
If you’re trying to decide what makes sense for your budget, start by comparing a few specific vehicles side by side, then plug your own mileage, energy costs, and incentives into the framework above. And if you’re leaning toward a used EV, shopping through a platform like Recharged, with verified battery health, fair‑market pricing data, EV‑specialist support, financing, and nationwide delivery, can help make sure that the electric car you choose is smart not just for the planet, but for your wallet too.
