The cost of owning an electric vehicle (EV) is generally less than owning a comparable traditional gas engine vehicle, primarily due to significant savings in operating costs, which can allow an EV owner to break even on the initial purchase price in less than five years. While the up-front purchase price of an EV can sometimes be higher, the long-term savings often make them more affordable overall.
One of the largest areas of savings is reduced fuel costs. The average Canadian spends nearly $3,000 on gasoline annually. In contrast, the cost to fuel the average battery electric vehicle (BEV) with electricity over the course of a year is only a few hundred dollars, resulting in potential annual savings of close to $3,000 on fuel.
Additionally, EV owners benefit from less maintenance. EVs have fewer moving parts than gas vehicles, eliminating the need for oil changes, spark plugs, and extensive exhaust systems. As a result, the average BEV owner can save approximately 40% to 50% in maintenance costs compared to a gas-powered vehicle, and they spend less time at the repair shop. Some insurance companies also offer cheaper insurance premiums or incentives for electric and hybrid vehicle owners, adding to the overall savings.
These cost advantages mean that when looking at the combined purchase price and long-term operating costs, an EV can be the more affordable choice. Furthermore, in Canada, where most electricity is generated by low-emitting sources, EV ownership can reduce your personal vehicle's greenhouse gas emissions by over 60%.
