EV and Hybrid Comparisons

“By comparing select electric and hybrid models within the same categories as gas-powered vehicles, AAA gives shoppers a more practical view of how ownership costs compare across powertrains.

• “Gas-powered vehicles: Overall, gas models offered savings compared to EVs and hybrids in cost categories affected by purchase price, like finance charges, taxes and fees, and depreciation. For example, gas-powered medium sedans cost $10,582 per year to own — $3,080 less than comparable EV medium sedans, which had significantly higher depreciation, fees and finance costs.
• “Electric vehicles: EVs delivered the lowest fuel costs, with charging costs for EVs about 66%–70% lower than fuel costs for traditional gas vehicles across the categories studied. However, those savings were often outweighed by higher depreciation, fees and finance costs; medium-sedan EVs, for example, cost 29.1% more to own annually than gas-powered models.
• “Hybrids: Hybrids were the most consistently lower-cost alternative to gas in the comparison categories. They combined meaningful fuel savings with smaller ownership-cost tradeoffs, costing less annually than gas-powered models in medium sedans, compact SUVs, medium SUVs and pickup trucks,” AAA said.

AAA’s Car Buying Guidance

“Vehicle category makes a major difference. Half-ton pickups cost $1.10 per mile to operate – 48 cents more than small sedans – adding an average of $7191 per year. In comparison, purchasing an EV may help offset annual fuel costs, but higher depreciation can increase total ownership costs over time. Choosing a vehicle that fits actual transportation needs can help buyers manage long-term costs.

• “Create a monthly and annual budget that includes ownership and operating costs before purchasing.
• “Keep the vehicle price, finance rate, and trade-in value as separate negotiations.
• “Get pre-approved by a financial institution, such as a bank, credit union or AAA, before discussing financing with the dealer,” AAA said.