Lower Annual Cost of Ownership Saves EV Drivers Money

While EVs have higher up-front costs, they require less maintenance and are cheaper to "fill up" than gas-powered vehicles. EV incentives, like the one passed in the Inflation Reduction Act (IRA), helped to mitigate that price difference and help consumers benefit from the lower operating expenses. When this benefit is ended in September 2025, the cost benefit of driving an EV instead of a gas car will drop but still create a net benefit for drivers.

These results are for passenger vehicles. We assume a vehicle drives 11,026 miles per year in 2023. This value grows in line with FHWA projections.
Our model calculates the total cost of ownership calculation from a number of factors. We include annualized cost of the vehicle purchase price, maintenance spending, fuel costs, and insurance coverage. Vehicle purchase price includes relevant incentives.
Source: RMI analysis, FHWA