true cost of EV ownership

The True Cost of EV Ownership: A 5-Year Data-Driven Breakdown (EV vs. Gas)

The Bottom Line: After a 5-year analysis of all costs—including depreciation, incentives, fuel, insurance, and maintenance—the average American driver will save approximately $6,000 to $10,000 by choosing a mid-range EV over a comparable gasoline-powered SUV. While the initial purchase price is higher, the significantly lower fuel and maintenance costs create substantial long-term savings.

Why This Analysis Matters in 2025 / 2026

The debate between EV and gas is no longer about just range anxiety or performance. It’s a critical financial decision. With fluctuating gas prices, a complex web of federal and state EV incentives, and changing insurance rates, a simple sticker price comparison is dangerously misleading. This guide provides a transparent, data-driven framework to calculate the total cost of ownership, empowering you to make a sound financial decision for your family.

The Contenders: A Real-World Showdown

To provide a true apples-to-apples comparison, we’ve selected two of the most popular, comparably equipped compact SUVs on the market:

  • Team Electric: 2025 Hyundai Ioniq 5 SE (Standard Range RWD)
  • Team Gasoline: 2025 Hyundai Tucson SEL (FWD)

Both vehicles offer similar size, features, and build quality, making them the perfect candidates for a cost analysis. All figures are national averages unless otherwise specified; your actual costs will vary.

Your Personalized EV Savings Calculator

Go beyond national averages. Input your own numbers to see your true 5-year cost of ownership.

Your Estimated 5-Year Total Savings

$0

Your Personalized 5-Year Fuel Cost

The 5-Year Cost Breakdown: Every Dollar Accounted For

We will analyze every expense over a 60-month ownership period, assuming an average of 13,500 miles (approx. 21,700 km) driven per year.

1. Purchase Price & Incentives (The Upfront Cost)

This is the most visible cost, but it’s heavily influenced by government incentives.

VehicleMSRPFederal Tax CreditNet Upfront Cost
Hyundai Ioniq 5 SE~$44,000-$7,500$36,500
Hyundai Tucson SEL~$29,500$0$29,500

Analysis: Even after the federal tax credit, the EV carries a $7,000 initial price premium. State incentives (like those in California or Colorado) can reduce this further, but for most buyers, the EV starts in a deeper financial hole.

2. Depreciation (The Hidden Cost)

Depreciation is the single largest expense for any new car owner. We use 5-year resale value projections from industry data.

VehicleNet Upfront CostEst. 5-Year Resale Value5-Year Depreciation Cost
Hyundai Ioniq 5 SE$36,500$19,500 (44%)$17,000
Hyundai Tucson SEL$29,500$15,000 (51%)$14,500

Analysis: Due to its higher initial cost, the Ioniq 5 is projected to lose more value in absolute dollars, costing an extra $2,500 in depreciation over 5 years.

3. “Fuel” Costs (Electricity vs. Gasoline)

This is where the EV begins its comeback. We assume a national average of $3.60/gallon for gasoline and $0.17/kWh for residential electricity.

VehicleEfficiencyAnnual MilesAnnual Fuel Cost5-Year Fuel Cost
Hyundai Ioniq 5 SE3.4 miles/kWh13,500~$675$3,375
Hyundai Tucson SEL28 MPG13,500~$1,735$8,675

Analysis: The EV is a clear winner here, saving over $5,300 in fuel costs over five years. For drivers in states with high gas prices like California, these savings can easily exceed $8,000.

4. Insurance Costs

Insurance rates for EVs are often slightly higher due to higher repair costs for specialized components.

VehicleEst. Annual Premium5-Year Insurance Cost
Hyundai Ioniq 5 SE~$1,950$9,750
Hyundai Tucson SEL~$1,700$8,500

Analysis: The EV costs an estimated $1,250 more to insure over the 5-year period.

5. Maintenance & Repairs

EVs have fewer moving parts, no oil changes, and less brake wear, leading to significant maintenance savings.

VehicleEst. 5-Year Maintenance Cost
Hyundai Ioniq 5 SE$1,800
Hyundai Tucson SEL$4,500

Analysis: With no oil changes, spark plugs, or timing belts to replace, the EV saves a substantial $2,700 in maintenance.

The Grand Total: A 5-Year Financial Verdict

Let’s add it all up to see the true total cost of ownership.

Cost CategoryHyundai Ioniq 5 SE (EV)Hyundai Tucson SEL (Gas)
Depreciation$17,000$14,500
Fuel (Electricity/Gas)$3,375$8,675
Insurance$9,750$8,500
Maintenance$1,800$4,500
Total 5-Year Cost$31,925$38,175

Conclusion: Despite a higher upfront cost and greater depreciation, the massive savings in fuel and maintenance make the Hyundai Ioniq 5 a full $6,250 cheaper to own over five years.

Frequently Asked Questions

1. What about the cost of installing a home charger?

We haven’t included this as it’s a one-time home upgrade, not a vehicle cost. A Level 2 charger installation typically costs between $700 and $2,000. Even when factoring this in, the EV remains the cheaper long-term option.

2. Will the EV’s battery need to be replaced?

It’s extremely unlikely. All EVs sold in the US come with a minimum 8-year/100,000-mile battery warranty. Modern batteries are designed to last the life of the vehicle with minimal degradation.

3. How do different states affect the outcome?

States with high gas prices, high electricity rebates, and additional state EV tax credits (like California, Colorado, and Washington) will dramatically increase the savings of owning an EV. Conversely, states with very low gas prices and high electricity rates will narrow the gap.

Vecharged is the consumer education platform of the Electricity Delivery Forum, an organization dedicated to the professional discussion of energy infrastructure and policy.
The experts at the Forum recognized a critical gap: while industry professionals had a place to discuss the future of the grid, there was no trusted resource dedicated to helping homeowners and consumers navigate these changes in their own lives.
Vecharged was created to fill that gap. We ground our practical, hands-on advice in a deep, foundational understanding of the broader energy landscape, ensuring our content is not only useful but also accurate and forward-looking.

This Is Not Just Another EV: It Can Power Your Job Site! (Kia PV5 Worksite Audit)

This Is Not Just Another EV: It Can Power Your Job Site! (Kia PV5 Worksite Audit)

October 11, 2025

My Expert Verdict: The Kia PV5 is being hailed as a modular delivery van, but its true mission is to retire the noisy, polluting diesel generator. The key is its robust V2L (Vehicle-to-Load) system. This isn’t just about modularity for taxis; it’s about transforming the construction site. This is the my audit of why the

The Silent Revolution Is Here: Have You Noticed It Yet?

The Silent Revolution Is Here: Have You Noticed It Yet?

October 10, 2025

I was in my office the other day, and I realized something was missing: the familiar clatter and roar of the diesel delivery truck that usually rattles the windows around lunchtime. It was replaced by a near-silent, electric hum. That’s when it hit me. For years, we’ve talked about the “future” of electric delivery. But

Kia PV5 Audit: Your Mobile Home Battery & Software Platform

Kia PV5 Audit: Your Mobile Home Battery & Software Platform

October 10, 2025

My Expert Verdict: The Kia PV5 is being hailed as a modular delivery van, but that’s a distraction. This vehicle is Kia’s most strategically important platform because it’s a massive software hub, a dynamic battery battlefield, and a Vehicle-to-Home (V2H) Trojan horse. This isn’t just about interchangeable bodies. It’s about how electric vehicles will integrate

The Best Home EV Charger Guide: Maximize 100-Amp Service and Unlock 11.5 kW Charging

The Best Home EV Charger Guide: Maximize 100-Amp Service and Unlock 11.5 kW Charging

October 7, 2025

For homeowners, the most critical decision when going electric is not the car—it’s the charger. The market is saturated with options, but the true cost lies hidden within your home’s electrical panel. The best Level 2 charger on the market is useless if your home can’t power it. This guide provides the definitive, expert-backed strategy

Next
0 0 votes
Article Rating
Subscribe
Notify of
guest

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x
Share to...