The federal government's $7,500 discount on electric vehicles has officially ended, which significantly changes the math of EV ownership -- and might make you wonder if it's more economical to buy a gas-powered car now.
This is a fair question, but the sticker price of a car (and the lack of a government rebate) is only one piece of the total cost of vehicle ownership, which also includes fuel costs, maintenance and depreciation.
When you take that all into account, EVs are still usually cheaper to own in the long run, according to auto experts. We did the math to show you how the costs break down, and how you can make an accurate comparison before making your next car purchase.
Comparing the upfront costs of an EV, hybrid and gasoline car
The sticker price is what most people think about when they compare the prices of different cars. From that perspective, the disappearance of the $7,500 federal EV tax credit puts EVs at a significant disadvantage on upfront costs when compared to gasoline or passive-hybrid cars.
When it comes to upfront costs, we've mapped out the winner, loser and runner-up:
Winner 🏆 Internal combustion engine vehicles Traditional gasoline cars usually have the lowest sticker price compared to their electrified counterparts. These types of vehicles have long-established supply chains and economies of scale that make them cheaper to manufacture, according to Antuan Goodwin, CNET's EV senior writer. Runner-up 🥈 Hybrid vehicles Hybrid-electric vehicles often have a slight premium over ICE cars due to the dual gas and electric powertrain, but are usually still more affordable than most pure EVs. Loser 💸 Electric vehicles Electric cars are typically at the top end for sticker price. "The battery is going to be the biggest reason that EVs are more expensive," Goodwin says. EVs also don't benefit as much from economies of scale. Plus, consumers are still subsidizing the research and development that legacy automakers are doing to design electric cars, according to Amelia Dalgaard, an automotive expert known online as Motorhead Mama.
Comparing fuel and charging costs
You can't control gas prices, but you can control how much you spend to fuel up. patty_c/Getty
This is where you start to see some of the biggest savings between EVs and gasoline vehicles. Here's how the costs shake out:
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