Cost Benefit Analysis of an Electric Car Vs Gasoline

Regardless of the type of vehicle you want to buy, there are several associated costs you need to consider. While an electric car offers long-term savings over the gasoline cars, there is a need to consider where its costs will come from.

Check out below for the cost-benefit analysis of the both types of vehicle.

1. Fuel Costs

This is the first significant difference between an electric car and gasoline car-their fuel source.

While gasoline burns internally to power the gasoline car, an electric car runs on electricity, which can come from several sources.

According to a study, the average cost to run a gasoline car in the United States is about $1,120 while running an electric car costs an average of $485 per year.

The price difference depends on the rates of gas and electricity available in your location, and the type of car you drive in addition to its fuel efficiency rating.

Meanwhile, the cost of running an electric car is more complicated. You are not paying a gas pump-type fee but each time your charge your electric car’s battery, the electricity used counts towards your electric bell.

Related Article: Electric and Hydrogen Vehicle Incentive Program

2. Maintenance Costs

Initially, it is the cost of fuel used to power the gasoline car that is noted, but the cost of maintenance builds up over time as the car ages.

Because a gasoline car has an internal combustion engine, you have to change engine oil, transmission fluid, coolant, and the belt.

On the other hand, an electric car does not run an internal combustion engine, therefore, those costs are non-existent.

However, an electric car has the need to replace its battery pack over time. An electric car uses a special type of battery that is drained and recharged constantly, which results in degradation after some time.

3. Electric Car Incentives and Rebates

There are incentives for electric vehicles and these rebates encourage people to switch to electric cars.

So, it is good to know what rebates are available near you. However, investing in an electric car and their reducing costs are one of the reasons that buying an electric car seam feasible and an intelligent decision to start with.

4. Cost

The cost implication of an electric car and gasoline car is very huge. Electric cars are way costlier than gasoline cars. The difference in the prices of the cars is very significant.

You spend an extra $9,000 to buy an electric car. But, with the aforementioned rebates in point 3, it is a great time to switch to an electric vehicle.

About E Charge Solutions

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