There Are Only 2 States Where It’s Still Cheaper to Own a Gas Car Than an EV
A recent JD Powers study, commissioned by Automotive News, found the average driver would save $3,161 over five years if they opt for an EV instead of a traditional ICE. This study examined the MSRP of buying a car outright, the cost of “fuel,” and the price of repairs. New Jersey drivers could save $10,345. But drivers in Maine and West Virginia could lose over $1,500 by going electric.
The purchase price of the average EV is still higher than the average ICE. So tax credits and other incentives are a major factor when calculating five-year ownership costs. In New Jersey, EVs are exempt from sales taxes, in additional to federal tax incentives. It would cost New Jersey residents $73,771 to buy and run the average ICE for five years. But an EV? $63,426. For your average commuter, that’s a $10,345 in savings.
Another reason an EV is a wise investment in New Jersey is that it is a populace state with relatively low electricity prices (unlike Maine and West Virginia). So if you drove more than average, you could see even more than $10k in savings. You can see how the savings broke down by state in the table below:
| State | 5-Year EV Ownership Savings |
|---|---|
| New Jersey | $10,345 |
| Nevada | $9,216 |
| Illinois | $8,751 |
| Colorado | $8,493 |
| New York | $7,574 |
| Utah | $7,113 |
| Massachusetts | $7,009 |
| Arizona | $6,146 |
| New Mexico | $6,165 |
| Maryland | $5,348 |
| Missouri | $4,902 |
| South Carolina | $4,846 |
| Florida | $4,778 |
| Rhode Island | $4,745 |
| Tennessee | $4,498 |
| Georgia | $4,432 |
| North Dakota | $3,935 |
| North Carolina | $3,918 |
| Nebraska | $3,835 |
| Hawaii | $3,794 |
| Michigan | $3,774 |
| Wyoming | $3,760 |
| Indiana | $3,468 |
| Pennsylvania | $3,416 |
| Mississippi | $3,284 |
| Minnesota | $3,166 |
| Delaware | $2,820 |
| Idaho | $2,685 |
| Virginia | $2,510 |
| Washington | $2,456 |
| Wisconsin | $2,301 |
| Texas | $2,282 |
| Kentucky | $2,272 |
| Alabama | $2,233 |
| Kansas | $2,189 |
| Montana | $2,114 |
| Ohio | $2,093 |
| Arkansas | $1,982 |
| Oklahoma | $1,964 |
| New Hampshire | $1,934 |
| Louisianna | $1,903 |
| Iowa | $1,835 |
| Oregon | $1,799 |
| California | $1,757 |
| South Dakota | $1,704 |
| Alaska | $1,318 |
| Connecticut | $1,210 |
| Vermont | $29 |
| Maine | $-1,619 |
| West Virginia | $-1,800 |
Obviously, these numbers won’t apply to everyone. Some folks won’t qualify for the latest EV tax credits. What’s more, JD Powers did these calculations based on buying a car outright, not financing it. So any given automaker’s financing may affect how much you’ll pay. Finally, JD Powers didn’t figure for selling the vehicle at the end of the five years. We have yet to see where EV resale values will be in five years. EVs currently depreciate rapidly. But with them needing far less maintenance for far longer than most folks suspected, we may see this change.
Another important factor is charging infrastructure. In much of the West, buying an EV and driving it the average number of miles daily could save you money. But in some of those states, long distance drives are just a part of live. Couple that with a public charging infrastructure that needs development, and even the cutting-edge EVs that outrun range anxiety might be a poor choice.
So what if you’re leasing? Because the average lease is just three years, the savings are much lower. You’ll find EV ownership saves you the most in Mississippi. The average three-year ICE lease and operating costs are $44,785. For an EV? That’s $41,701, which is a saving of $3,084. Meanwhile, in Connecticut the average three-year EV lease is $42,429 while the average three-year ICE lease is $35,634. So in that state, leasing n EV would cost you an extra $6,795
