Quick Facts About Hidden Costs of Electric Car Ownership
- On average, electric vehicles are almost $5,000 more expensive than comparable gas models.
- Many electric models have higher insurance costs, and tires generally wear faster on EVs.
- Some states charge additional EV registration fees to compensate for lost gas tax revenue.
- On average, EVs depreciate faster than gas vehicles.
Electric vehicles (EVs) have grown from a niche product to a mainstream one over the past several years, and they can be an excellent choice for many buyers. Even so, there’s a lot to think about beyond the temptations of instant torque and zero fuel costs. For some people, a gas vehicle may still be a better option. We’ll dive into some of the additional costs and unexpected expenses that can arise with EV ownership, so let’s get rolling.
Hidden Costs of Electric Vehicle Ownership
EV vs. Gas Savings Calculator
See EPA sticker; most EVs: 25 to 40
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const msrpGas = val(‘msrpGas’);
const msrpEv = val(‘msrpEv’);
const incentives = val(‘incentives’);
const mpgGas = val(‘mpgGas’);
const evEff = val(‘evEff’);
const annualMiles = val(‘annualMiles’);
const gasPrice = val(‘gasPrice’);
const elecPrice = getElecPrice();
// Annual energy cost
const fuelCostGas = (annualMiles / mpgGas) * gasPrice;
const chargeCostEv = (annualMiles / 100) * evEff * elecPrice;
const annualSavings = fuelCostGas – chargeCostEv;
const netEvPrice = msrpEv – incentives;
const priceDiff = netEvPrice – msrpGas;
let breakEven;
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note = ‘After incentives, the EV costs the same or less than the gas vehicle up front.’;
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card(‘Annual fuel cost (gas)’, money(fuelCostGas)) +
card(`Annual charging cost (EV, ${where})`, money(chargeCostEv)) +
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card(‘Time to recoup extra cost’, breakEven) +
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${note}` : ”);
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Higher initial purchase price
According to Kelley Blue Book’s parent company, Cox Automotive, the average pricing for new electric vehicles in August 2026 was nearly $5,000 more than the average new gas vehicle. While the math varies depending on where you live and how you drive, the reality is that it takes a very long time to recoup the extra money spent on fuel and maintenance with an EV.
Home Charger Installation
It is entirely possible to own an EV without a home charger, but having one makes the ownership experience much less stressful. People who rely solely on the public charging network sometimes face long wait times, and some charging companies are more reliable than others. Home charging is also typically much less expensive than public charging stations. That said, installing a Level 2 EV charger can cost a few thousand dollars if the home requires electrical upgrades.
RELATED: An EV Charger Buying Guide: See All Your Options
Insurance
Electric vehicles might sidestep some of the routine maintenance costs that impact gas-powered cars, but they cost more in other areas, including insurance. Many insurers charge more for EV insurance due to the higher-cost parts and advanced technologies that require extensive installation and calibration. Some electric models also require specialized labor, especially for battery diagnostics, repair, or replacement.
Residual Value
Depreciation isn’t something every buyer considers, but it’s an important factor for electric vehicles. Over a 5-year period, EVs tend to lose 5-10% more of their value than their gas-powered counterparts. The more rapid depreciation is due to several factors, including quickly progressing tech features, concerns about battery life, and strong upfront incentives for buyers. The federal EV tax credit ended in late 2025, but some states offer rebates, and many automakers offer deep discounts to boost demand.
$4,847
Average extra cost of a new electric vehicle (EV) over a non-EV in August, a 9.7% premium.
New · Avg. transaction price
EV premium: $4,847 (9.7%)
Used · Avg. listing price
EV premium: about $2,700 (7.8%)
Costs shoppers may not expect
- −$1,600Smaller discounts. New EV incentives averaged $6,594, down 19.9% from a year ago.
- +$2,800Pricier used EVs. Listing prices are up 8.2% from a year ago.
- $0Tax credit. The federal credit of up to $7,500 ended Sept. 30, 2025.
*ICE+ refers to non-EV vehicles. Figures marked “about” and dollar changes are calculated from reported prices, premiums and year-over-year changes. Tax credit information reflects federal law.
Source: Cox Automotive, EV Market Monitor – August 2026; Kelley Blue Book.
Graphic: Chris Teague
Registration and Usage fees
States rely on gas tax revenues to fund road repairs and other projects, and many apply an additional fee on electric vehicle registrations to offset the lost revenue. The charges vary by state, including Texas, where it can cost as much as $400 to register a new electric vehicle for the first time.
Tires
Here’s one you might not think about: Tires. Electric vehicles are heavier than gas models, and electric motors produce maximum torque from zero RPM, resulting in powerful acceleration. Those two forces combine to generate more friction and heat, which can lead to faster tire wear. Regenerative braking is another factor, as the tires bear much of the force when the electric motors slow the vehicle.
The good news: The EV price gap is shrinking
- −2.8%New EV prices vs. a year ago, as cheaper models like the Toyota bZ and Chevrolet Bolt sell more
- 78 daysNew EV supply, just two days above non-EVs
- +25.9%Used EV sales vs. July as off-lease EVs return
Source: Cox Automotive, EV Market Monitor – August 2026.
Bottom Line
It’s easy to get distracted by gas savings and lower routine maintenance costs, but there are other EV-related expenses to consider before buying. Some people appreciate that EVs don’t produce tailpipe emissions or use fossil fuels during operation, while others like the energetic acceleration and quiet driving experience. The decision of whether those things matter more to you than the greater upfront costs is a personal one, and it’s important to remember that you might be waiting quite a while to make your money back on fuel savings alone.
LEARN: To explore in-depth EV resources, visit our Car Powertrains Information Center.
Editor’s Note: This article has been updated since its initial publication.
Related Articles
- Payload and Towing Capacity on Electric Vehicles
- Electric Vehicle Inspections: What You Need to Know
- Electric Car Buying Guide: How to Buy the Right EV
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