The report also highlights that almost 50% of US citizens think that the initial cost of EVs is too high.
What Criteria Was Used By Energy Innovation’s Report?
The analysis carried out by Energy Innovation discusses the total cost of ownership instead of the average 12-year car ownership. It considers the monthly costs that owners have to pay for a financing term of 6 years.
The report highlights that around 85% of US vehicles are financed. Thus, it is rational to take the financing terms into account while calculating the cost of ownership of an EV as compared to that of a petrol car.
Parameters For The Report
The report goes into detail about owning electric cars vs petrol cars in all US states. It includes the following parameters:
- Financing costs;
- Fuel (This cost is based on average electric cost and fuel cost on 4th May 2022);
- EV incentives.
The report is so detailed that it even includes the extra EV fee implemented by a few states.
The following formula was used for calculating the annual financing charges for the vehicle
Which Cars Were Made A Part Of This Study?
The report included six different car comparisons to get the best outcome. These vehicles were a part of the electric cars vs petrol cars comparison included:
- Volvo XC40 Inscription as compared to Volvo XC40 Recharge Plus;
- Kia Niro EX Premium as compared to Kia Niro EV EX Premium;
- Hyundai Kona SEL as compared to Hyundai Kona Electric SEL;
- Ford F-150 XL as compared to Ford F-150 Lightning Pro;
- Hyundai Kona Limited as compared to Hyundai Kona Electric Limited;
- Nissan Versa S Xtronic CVT as compared to Nissan LEAF
It is also highlighted by the report that many of the above-mentioned pairs are not perfect as EVs in some cases have many extra options than their petrol counterparts. One such example is the Nissan LEAF as compared to the Nissan Versa.
Misconception About Electric Cars Being More Expensive
The report proves with results that it is a mere misconception that electric cars are more expensive to run than petrol ones.
For example, in all states, the Ford F-150 Lightning and the Kona Electric SEL are cheaper to own on a monthly basis during financing terms.
Almost all other EVs, other than the Niro EX, are cheaper to own on a monthly basis than their gasoline siblings.
What About The Cost After The Financing Term Is Over?
Another aspect that needs to be highlighted here is that all of the above data is valid for the period of financing which is six years for new car purchases.
However, after these initial six years, the monthly cost of running the EVs drops even further as EVs become more affordable when they are run more kilometres.
There’s A Catch
While the report suggests that electric cars cost less to run an EV every month during and after the financing term, it is to be kept in mind that this is possible only because of the US Federal tax credit amounting to $7500.
However, the best performers in the above list i.e. Nissan LEAF & Ford F-150 lightning won’t be able to make use of this tax credit after the next year. The same will happen for other EV manufacturers as well in the upcoming years.
If the Federal tax credit is extended, the EVs will continue to cost lesser per month than their petrol counterparts.
This is good not only for the customers, as EVs require lesser maintenance, but also beneficial for the environment.