www.greencarreports.comHalf of 2024 EVs have lower 5-year ownership cost vs. ICE
Stephen Edelstein2-3 minutesMany EVs have a lower five-year cost of ownership than comparable gasoline models, according an annual roundup from Vincentric, a source for ownership cost calculations for websites and automakers.
Vincentric's analysis covers eight factors: depreciation, fees and taxes, financing, fuel cost, insurance, maintenance, opportunity cost and repairs. It assumes new vehicles are driven 15,000 annually over the first five years of ownership.
In its latest analysis, Vincentric found that 20 of 41 electric models (49%) cost less to own over five years than their gasoline counterparts. That's down from the 2023 analysis, in which 52% of EVs surveyed had lower ownership costs than gasoline vehicles.
Depreciation is where EVs continue to lag behind gasoline vehicles, largely due to higher purchase prices, according to Vincentric. The loss of the federal EV tax credit for many models hasn't helped, either. But analysts note that EV costs are expected to drop in the next few years, potentially allowing them to achieve price parity with gasoline models. That's likely to happen because of continually falling battery prices, driven down by excess manufacturing capacity and more availability of raw materials.
