Electric vs. gas vehicles: Which is better? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by offering you financial calculators and interactive tools that provide objective and unique content, by enabling users to conduct research and compare information for free – so that you can make informed financial decisions. Bankrate has agreements with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are displayed on this website are provided by companies that compensate us. This compensation can affect the way and when products are featured on the site, such as for instance, the sequence in which they appear in the listing categories and other categories, unless prohibited by law. Our mortgage, home equity and other home loan products. This compensation, however, does not influence the content we publish or the reviews you read on this site. We do not cover the universe of companies or financial deals that might be accessible to you. Thomas Barwick/Getty Images
8 min read published August 15 2022
Written by Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ins and outs of securely taking out loans to buy an automobile. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are committed to helping readers gain confidence to control their finances with precise, well-researched and well-studied facts that break down complex topics into manageable bites. The Bankrate promises
More details
At Bankrate we are committed to helping you make better financial decisions. We are committed to maintaining strict ethical standards ,
This article may include some references to products offered by our partners. Here’s an explanation for how we earn money . The Bankrate promise
In 1976, Bankrate was founded. Bankrate has a long track history of helping people make informed financial decisions.
We’ve earned this name for more than four decades through making financial decisions easy to understand
process, and giving people confidence in which actions to take next. process and gives people confidence in the next step.
You can rest assured you can trust us to put your needs first. All of our content was created with and edited
They ensure that what we write is objective, accurate and reliable. Our loans reporter and editor are focused on the points consumers care about most — the various kinds of lending options and the most competitive rates, the top lenders, how to pay off debt and more — so you’ll be able to feel secure when investing your money. Integrity of the editing
Bankrate follows a strict standard of conduct, which means you can be confident that we’re putting your interests first. Our award-winning editors and reporters provide honest and trustworthy information to help you make the right financial decisions. Our main principles are that we appreciate your trust. Our aim is to provide readers with truthful and impartial information. We have standards for editorial content in place to ensure this happens. Our editors and reporters thoroughly check the accuracy of editorial content to ensure that what you read is true. We maintain a firewall between advertisers as well as our editorial staff. Our editorial team doesn’t receive compensation directly from our advertisers. Editorial Independence Bankrate’s editorial team writes on behalf of YOU the reader. Our aim is to offer you the best advice that will help you make smart personal finance decisions. We adhere to strict guidelines in order for ensuring that editorial content isn’t affected by advertisements. Our editorial team is not paid any compensation directly from advertisers and all of our content is verified to guarantee its accuracy. So, whether you’re reading an article or reviewing it is safe to know that you’re getting reliable and reliable information. How we make money
You have money questions. Bankrate has answers. Our experts have helped you understand your money for over four decades. We are constantly striving to provide our readers with the professional guidance and the tools necessary to make it through life’s financial journey. Bankrate adheres to a strict code of conduct , which means you can be sure that our content is honest and accurate. Our award-winning editors and reporters produce honest and reliable content that will help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced through our sponsors. We’re open about how we are in a position to provide quality information, competitive rates and helpful tools for our customers by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and, services, or when you click on certain links posted on our website. So, this compensation can impact how, where and in what order products are displayed within the categories of listing and categories, unless it is prohibited by law for our mortgage home equity, mortgage and other home lending products. Other elements, such as our own rules for our website and whether the product is available in your area or at your personal credit score can also impact how and where products appear on this site. Although we try to provide a wide range offers, Bankrate does not include information about every financial or credit products or services. One-in-four consumers who are considering buying a new car is buying a hybrid or electric vehicle just as they would with the traditional gas-powered vehicle According to (KBB). The choice of electric vehicles — or any alternative fuel vehicle — is a good idea for both your wallet and the environment. However, before you go to the dealership , it’s sensible to consider electric vehicles and be aware of the differences in the cost of ownership. What exactly is an electric car? The EV market has been growing in popularity in recent years, especially as the awareness of climate-related issues continues to grow. This, in conjunction with steep gas prices have all resulted in drivers seeking to save money by going electric. In contrast to the gas-powered cars that are commonly on the roads and in parking lots, EVs have a motor that is powered by a battery. There are three types of electric vehicle. The hybrid electric vehicle (HEVs) powered by an electric motor and the internal combustion engine HEVs have the power of a gas-powered traditional vehicle with the benefit of improved fuel economy. You do not charge an HEV as you would with the EVs it is compared to, however it charges the battery via the engine. There is a wide range of makes and models of HEVs available on the market. Some highly rated options as per KBB include the Honda Accord Hybrid, the Toyota RAV4 Hybrid and the Hyundai Elantra Hybrid. Plug-in hybrid electric cars (PHEVs) A plug-in hybrid is just as it sounds it is a hybrid vehicle you plug in to charge. It is powered through batteries inside the vehicle, which is recharged by an external cable. PHEVs also use an alternative fuel, which is typically gasoline for powering their internal combustion engines (ICE). This kind of vehicle utilizes electricity until it is spent and then taps into the ICE capabilities. The options for PHEVs are less limiting, however KBB’s most popular choices include that of Ford Escape SE Plug-in Hybrid and the Hyundai Tucson Plug-in Hybrid as well as the Kia Niro Plug-in Hybrid. Electric vehicles that are fully electric (EVs) A fully electric vehicle increases the quality and is powered completely by an electric motor- no ICE or additional alternative fuel source involved. These have a battery pack that powers the vehicle . It is charged in a similar way to a PHEV. Electric vehicles are charged using a specialized outlet. While charging stations are found locally, it is essential to be aware of the extra cost for a station to charge, if you are you are considering an all-electric. KBB’s top fully electric choices include the Chevrolet Bolt EV, the Nissan Leaf and the Ford Mustang Mach-E. Cost of electric in comparison to. gas cars Before diving deep into the world of hybrid and electric vehicles, it is essential to know the price differentiation between gas and electric. Although driving an EV will have lower costs overall however, the initial cost could be an obstacle for some. In recent times, purchasing a new car is costly regardless of the power source. July 2022 saw record high average prices for transactions on new cars of more than $48,000, as per . But the average price for an EV is still more expensive than a gas-powered option. The KBB estimation for the EV exceeds $60,000- which aligns with an average price for a luxury car. It is expected that the EV market to reach 40 % by the year 2031 according to . This prediction is supported by the increasing number of vehicles entering the market. This increase in EV availability serves as a potential equalizer. When more consumers are looking into buying electric cars their costs will drop. This growth is already clear in the number of new models entering the market. For the quarter that began in early 2022, 4.64 percent of new car registrations were for electric vehicles, and 7.18 per cent were hybrid vehicles, as per Experian’s report of automotive market trends. This made for a 60.4 percent growth for EVs over the first quarter of 2022, and an 10.7 percent increase for hybrids. Cost of owning electric vehicles vs. gas cars While the upfront cost of the next car is crucial, you must also understand the costs involved in maintaining and keep the car for the lifetime of ownership. Look at the five-year cost-to-own comparision for two top cars, according to Edmunds. The first is the 2022 Chevrolet Bolt EV, comes with a price tag of $31,955 and comes with a huge range, spacious cabin and well-rated handling. The second, a 2022 Mazda 3, is a popular gas-powered option with a price tag of $24,115. Both offer a premium interior, a smooth ride and an engine that is turbocharged. Think about how the costs accrued over five years of car ownership influence which vehicle you’d prefer. 2022 Chevrolet Bolt EV
2022 Mazda 3
Vehicle depreciation
$8,767
$6,700
Fees and taxes
$2,603
$1,814
Financing
$2,921
$2,309
Fuel
$2,283
$11,255
Insurance
$5,411
$3,941
Repairs
$731
$666
Maintenance
$2,806
$4,592
Cost of ownership for the real thing
$25,522
$31,277 Fuel At the most basic scale, driving an electric vehicle means no more trips to fill up at gasoline stations. A study conducted in 2020 it was found that EV owners will pay on average 60 percent less money for fueling their vehicles. The difference in cost of gas between Chevy as well as the Mazda is more significant than that average. However, getting the power you need for your electric vehicle isn’t easy as simply choosing standard high-end, mid-range or high-end. Electric vehicle charging is broken down into three choices that have different benefits and costs. One charging. It is by far the most commonly used type of charging that is accessible through the same outlet that you charge your phone with. They are the least efficient charging options and offer up to five and two miles charge per hour. Level two charging. These chargers, which are typically placed in garages, use the same power that your washing machine uses. You could get between 10 and 20 miles of charge in an hour. Level three charging. Also known as DC charging These are accessible in public settings. They are the quickest option and drivers can receive an 80 percent charge within 20 minutes. As washing your machine multiple times in succession will add to your electric bill and the extra cost when charging at home can add up. The ongoing expense is on top of the cost for installing an at-home charger — which can range between $300 and $50,000, according to the size of charge. However, keep in mind that most communities have access to chargers, so you may not need to pay to install it right away. Visit a free EV station map, to find chargers in your area. You can finance your cargasoline or electric powered — simply by applying online or in person with several lenders prior to deciding on the best option, financing a green car may come with certain benefits. For those who want to finance their electric vehicle. These types of loans are typically found through a credit union and tend to offer lower rates of interest than conventional auto loans. You could also be eligible for financial incentives that is available in certain states of the U.S. You can benefit from a credit worth as high as $7,500, contingent on the state in which you reside. Insurance Insurance is an essential aspect of ownership that protects yourself and your passengers. This policy follows the same route that you’d take to protect a conventional vehicle option. It covers bodily injury, collision responsibility and comprehensive insurance. And as with any vehicle the price you pay will be determined by several factors. But, the insurance cost for an EV will typically cost more than conventional gas-powered alternatives. One reason is the price of the vehicle parts. A minor accident could cause, for instance having to pay for a battery pack replacement — which can be priced at upwards of $15,000. Bankrate examined 12 car models provided by Quadrant Information Serves and found that, on the average, premiums will be more expensive for electric cars. This is evident in the increased insurance cost expected for the Bolt in comparison to the Mazda 3. Pros and cons of electric cars Electric vehicles can offer a vehicle that’s better for the environment as well as your wallet in the long haul However, they do have downsides. Advantages of electric cars A few benefits to driving an electric car include less maintenance. Electric cars require fewer trips to the mechanic which can mean less money spent on costs, such as oil changes and brake system checks. A lower cost for the life of the vehicle. The cost of owning a vehicle can be high however EVs have a lower life cost. More sustainable environmentally. They do not release pollutants from the tailpipe and are therefore more beneficial for the local air quality as well as overall emission of greenhouse gases. Advanced technology is available. Many newer electric car models come with advanced control panels and mobile apps to control and monitor the vehicle. The cons of electric cars A few drawbacks that come with driving an EV are: Higher cost to purchase. In the average, purchasing an EV has a more expensive initial cost, which is close to $12,000 more, according to the average KBB July 2022 transactions prices. Range anxiety. Charging stations can be few and far between in some locations, leaving motorists feeling anxious when looking for a location to charge their power. Faster vehicle depreciation. Vehicle incentives and battery degradation cause a quick loss of value in the case of electric vehicles. Cost to install a charging station. If you prefer being able to charge at your own home, the installation could cost as much as $50,000. Are electric vehicles the best choice for you? if your next set of wheels is electric, it should be considered similar to how you would pick the model or design of traditional vehicle is the best fit for you- focus on your lifestyle and preferences. If your commute is compatible with the range that and the range of options an electric vehicle offers, or if you like the sleek design and environmental benefits, then an EV might be the best option. However, if committing to a full EV is too much of a financial investment, you might want to look into , or opt for an electric or hybrid if you’re set on buying. Hybrids and plug-ins generally cost less upfront , but still offer the same money-saving advantages that a fully electric car does. Consider these main aspects when shopping for a car to make sure that you’re choosing an EV is worth investing in. The vehicle range If you’re on a long commute and aren’t able to access charging stations on the route as well at the destination you are heading to, consider the range of the vehicle that the car you are considering buying. The average battery range can differ significantly based on the type of car. Be careful not to purchase a car that can’t be easily charged to go on your daily excursions. Access to chargers Prior to going to the dealership to shop make sure you have access to chargers in your neighborhood or think about the expense of installation and upkeep of an in-home charging station. This involves weighing the level one, two, and three options based on your requirements. Your lifestyle Not only is it crucial to think about your lifestyle in terms of form but also in the way of function. Electric vehicles operate in a different way from what you are familiar with. Because of its dependence on regenerative braking, as an instance, you will experience a slower brake but a smoother overall drive. The bottom line The true cost of owning an EV could be lower than a gas-powered option. Even with higher depreciation rates for vehicles and possibly higher insurance and financing, the less maintenance costs and the five-year time frame for owning an EV makes it a promising option. As a car buyer it is crucial to consider which costs are important most to you, and whether EV fits the rest of your life. FAQs How long does it take to charge an electric car Based upon the capacity of your vehicle’s battery, charging can be as short as 30 minutes or 12 hours. It is recommended to charge your electric vehicle in smaller increments instead of all at once to reduce the time to charge. What’s the price for charging an electric car? The exact cost to charge will vary by region due to the different prices for electricity, the cost is determined by the range available and cost per Kilowatt (kWh). In California for instance the average electricity price is 18 cents per unit, so an EV with a 150-mile range would be about $7 for a complete charge. How long do battery packs for electric vehicles last? The batteries in an EV will last between 10 to 20 years, until they require a complete replacement.
SHARE:
The article was written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the ways and pitfalls of borrowing money to buy a car. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are dedicated to helping readers gain confidence to manage their finances with precise, well-studied facts that break down otherwise complex subjects into bite-sized pieces.
Auto loans editor
Related Articles Car Insurance 7 min read Jan 06 2023 auto Loans 6 minutes read Sep 23 2022 Car Insurance 7 min read Sep 02 2022 Loans 4 minutes read March 21, 2023
When you have almost any inquiries relating to wherever in addition to how you can work with instant same day payday loans online direct lenders, you’ll be able to email us in our site.