July 21, 2025 Joel Manansala

Average Price of Electric Car VS Gas Car: A Comprehensive Guide

Electric vehicles (EVs) are transforming the automotive market with the promise of lower fuel costs, reduced maintenance, and environmental benefits. But many car buyers are still weighing the average price of an electric car vs a gas car before making a decision. In this guide, we break down the purchase price, fuel and maintenance costs, resale value, tax incentives, and long-term cost of ownership to help you determine which option is better for your budget.

Summary:

The average upfront cost of an electric vehicle (EV) is higher than that of a gas-powered car.
As of April 2025:
- Average EV price in the U.S.: $59,205
- Average gas car price: $48,699
EVs typically have lower long-term ownership costs due to:
- Savings on fuel
- Reduced maintenance
- Tax incentives and rebates
Over a 7–15 year ownership period, EV drivers can save $7,000 to $11,000 compared to gas vehicle owners.

Average Purchase Price: EVs vs Gas Cars

EVs still carry a higher upfront cost, but incentives and falling battery prices are narrowing the gap.

New electric car (2025): $59,205 average transaction price (Kelley Blue Book)
New gas-powered vehicle (2025): $48,699 average
Price difference: About $10,500 upfront before incentives. In early 2024, the price gap between EVs and gas vehicles reached as high as 42%, though this has begun to shrink thanks to falling battery costs.

Thanks to the federal government offering tax credits of up to $7,500 and various state and local incentives, the effective cost of an EV can drop significantly. These programs help offset the higher manufacturing and battery costs that make EVs more expensive up front.

Factors Driving Price Differences

Several economic and technical factors influence the pricing of EVs and gas vehicles.

Battery costs: EV batteries make up 30–40% of the total vehicle cost. As production scales up and new materials are developed, these costs are expected to fall further.
Government support: The Inflation Reduction Act and similar programs provide significant incentives for EV adoption.
Production scale: Traditional gas-powered vehicles benefit from decades of high-volume manufacturing efficiency.
Technology: EVs are often equipped with advanced features such as autonomous driving hardware, over-the-air software updates, and large infotainment systems.

These elements combine to make EVs more expensive upfront, even though long-term ownership costs often favor electric vehicles.

Manufacturer Comparison: Electric vs Gas Car Pricing

How much you pay also depends on the brand and model. Here's how some major automakers compare.

Tesla: Entry-level Model 3 starts at around $38,000; premium versions exceed $55,000 — and many owners invest in dedicated Tesla chargers for faster at-home charging.
Hyundai, Kia, Ford: Offer EVs with pricing comparable to gas versions.
BMW, Audi: Luxury EVs often match their gas-powered siblings in pricing.

Some automakers use dedicated EV platforms that streamline production and reduce costs. Others adapt gas-powered vehicle frames, which can increase expenses or limit design flexibility.

Segment Analysis: EV vs Gas by Vehicle Type

Let’s break it down by category to see how pricing compares within each segment.

Vehicle Type	EV Models	EV Price Range	Gas Models	Gas Price Range
Sedans	Tesla Model 3	~$38,000+	Honda Accord	~$28,000
SUVs	Hyundai IONIQ 5, Ford Mustang Mach-E	~$40,000–$45,000	Toyota RAV4	~$30,000–$35,000
Trucks	Ford F-150 Lightning, Rivian R1T	~$50,000–$70,000	Ford F-150	~$36,000+

Although EVs are often more expensive than internal combustion engine cars across segments, the gap shrinks or disappears when factoring in rebates and fuel savings.

Used EV vs Gas Car Prices

Used EVs have become more competitive and accessible for budget-conscious buyers.

Used EVs: Prices have dropped significantly due to technological advances and increased supply.
Used gas cars: Still dominate the used car market with typically lower sticker prices.
Battery health: A critical consideration when buying used EVs; it can affect value and reliability.
Used EV tax credit: Up to $4,000 available through the Inflation Reduction Act.

As battery warranties and tech improve, the used EV market continues to gain traction among buyers seeking long-term value.

Fuel Costs: Electricity vs Gasoline

Fueling your car with electrons is typically much cheaper than filling it with gas.

Electricity cost: $3–$5 per 100 miles
Gas cost: $12–$15 per 100 miles
2025 gas average: $3.77/gallon

Electricity prices tend to be more stable and predictable than gas, providing peace of mind for budget-focused drivers who are looking to save money in the long run.

Home Charging vs Public Charging

Where and how you charge your EV can impact your total fueling costs.

Home charging: Most affordable option is with Level 1 EV charger - $6–$18 per full charge, depending on rates.
Off-peak charging: Can reduce costs by up to 30%.
Public charging: More expensive ($20–$40/session) but still cheaper than gas in most cases. Public charging stations typically charge around $0.30 per kWh, which is higher than most residential electricity rates.

For daily driving, home charging offers the greatest savings and convenience. Public charging or faster at-home charging with Level 2 EV chargers adds flexibility for road trips or apartment dwellers.

More info on Should You Buy A Used Electric Car? can be be found in our article.

Maintenance Costs: Electric vs Gas Cars

EVs are generally easier—and cheaper—to maintain than their gas counterparts.

EV maintenance savings: ~50% lower than gas vehicles. On average, gas-powered vehicles incur about 35% more in annual maintenance costs due to oil changes, engine repairs, and emissions components.
Fewer parts to repair: No oil changes, spark plugs, or timing belts
Regenerative braking: Extends brake life significantly
Battery replacement: Costly ($5,000–$15,000) but rare, often covered under warranty for 8–10 years

These savings reduce long-term upkeep expenses and help offset the initial purchase premium.

Cost Savings Over Time

EVs are cheaper to maintain: ~50% lower maintenance costs compared to gas cars
Gas-powered cars: Require frequent oil changes, brake replacements, and emission checks
Battery replacement: A major EV cost ($5,000–$15,000), but batteries last 8–10 years and are usually under warranty

Lower maintenance translates to fewer service visits, reduced labor costs, and greater long-term reliability.

EV vs Gas Cars: Long-Term Comparison

Looking beyond the purchase price gives a more accurate picture of affordability over time.

Cost Category	Electric Vehicles	Gas Powered Vehicles
Purchase Price	Higher upfront, lower over time	Lower upfront
Fuel Costs	Lower (stable electricity costs)	Higher (volatile gas costs)
Maintenance Costs	Lower due to fewer moving parts	Higher due to engine upkeep
Insurance Premiums	Slightly higher for some EVs	Lower for ICE vehicles
Depreciation	Faster for older models; varies by brand	More stable in mainstream models

EVs shine in most cost categories, and while insurance premiums can be slightly higher due to vehicle value and repair complexity, they often come out ahead overall—especially for high-mileage drivers.

Some lenders now offer green auto loans for EVs, with reduced interest rates and longer repayment terms, further improving EV affordability.

Read more on the subject if electric cars (EVs) depreciate faster in this article.

Regional Cost Variations

Where you live impacts how affordable it is to own and operate an EV.

Electricity costs: Lower in some states, making home charging cheaper
Gas prices: Vary by region due to local taxes and logistics
Charging availability: Urban areas offer better access to charging stations
Incentives: Some states offer rebates, HOV lane access, toll waivers, and registration discounts

Urban and suburban dwellers with home charging access typically benefit the most from EV ownership.

Environmental & Social Factors

Cost aside, many drivers are motivated by the broader impact of their vehicle choice.

Zero tailpipe emissions reduce greenhouse gases and improve air quality
EVs help reduce reliance on fossil fuels
Cleaner, quieter communities—especially in urban environments
Integration with solar energy can make charging even greener

For eco-conscious consumers, the environmental advantages of EVs can be just as compelling as the financial ones.

Price Outlook: EVs vs Gas Cars in the Near Future

EV prices are falling—and the gap with gas cars is expected to disappear within a few years.

EV prices have dropped over 20% since 2022
Gas car prices remain stable or have risen slightly
Analysts forecast price parity by 2027, especially in the sedan and SUV segments
Battery innovation, larger production runs, and sustained incentives will continue to drive costs down

As EVs become more affordable and widespread, choosing one will increasingly be a financial—rather than lifestyle—decision.

Is an EV Right for You?

Deciding between an EV and a gas-powered car depends on your specific situation, preferences, and driving habits.

Ask yourself:

What’s your daily commute distance?
Do you have access to home or workplace charging?
Are local electricity rates lower than gas prices?
What rebates or tax credits are available in your area?
Are you ready to invest in a home charger?
Do you have access to a home charger, or would you rely on public charging stations?

If you drive frequently and have access to reliable charging, the long-term cost advantages of EV ownership can be substantial.

Ready to Make the Switch?

Explore our top-rated EV chargers, EV adapters, and accessories to power your electric journey. Need help deciding? Check out our EV comparison guide or visit our FAQs for expert answers.

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FAQs

Do electric cars last longer than gas cars?

Electric cars can last as long as gas cars, with proper battery maintenance being the key factor. EV batteries typically last 8–15 years, supported by warranties. Fewer moving parts reduce repair needs. Gas cars may outlast EVs in extreme conditions, but technology advancements are improving EV durability.
What is the average price of an electric cars vs cars for 2024?

In 2024, the average price of an electric car is about $53,000, while gas cars average $50,200. Federal tax credits and incentives often reduce EV costs significantly, narrowing the gap in car prices. As EV technology advances and production scales up, electric cars are becoming increasingly affordable compared to gas vehicles.

Is there a downside to electric cars?

Electric cars have challenges like limited charging infrastructure, higher purchase prices, and reduced battery efficiency in extreme weather. Charging times can be longer than refueling gas cars. However, these issues are improving with better technology, and EVs still offer long-term savings and environmental benefits for many buyers.

Is it worth spending more on an electric car?

Yes, electric cars are worth the investment for many drivers. They save on fuel, maintenance, and repairs while offering federal tax credits. For those with access to home charging, the long-term financial benefits and environmental advantages outweigh the higher upfront cost, especially for frequent commuters.

How much can a daily commuter save by switching to an EV?

A daily commuter driving 40 miles per day can save over $800–$1,200 annually in fuel costs alone, depending on electricity costs vs gas prices.

Is an EV a good option for someone living in a rural area?

It depends. If you have access to home charging and reliable electricity, owning an EV in a rural area is viable. Lack of public charging stations can be a drawback.

How does using a Lectron charger impact EV charging costs vs. gas refueling?

Lectron chargers allow faster, more efficient charging, reducing the time and cost associated with charging, especially at home. Compared to gas costs, this leads to significant cost savings over time.

Does Lectron offer adapters to help make EV ownership more affordable?

Yes. Lectron sells EV adapters that improve charging flexibility and affordability, allowing EV owners to use a wider range of charging infrastructure.

How does owning an EV affect long-term budget planning?

Lower fuel and maintenance costs, plus potential tax savings, help EV drivers allocate more to other expenses. Monthly payments may be higher upfront but offset by long-term lower costs.

What’s the average resale value of electric cars vs gas cars?

Some EVs, like the Tesla Model 3, retain up to 48% of their value after five years. Older EVs depreciate faster due to rapid tech advancement. Gas cars tend to have more predictable resale value.

How do EV prices compare across different manufacturers?

Mainstream brands (Hyundai, Ford) offer competitive EV pricing, while luxury EVs (Tesla, BMW) often mirror or exceed their gas counterparts in price.

How do EVs, hybrids, and gas cars compare in price?
- EVs: Highest upfront cost, lowest running cost
- Hybrids: Middle ground on price and fuel cost
- Gas cars: Lowest upfront, highest long-term fuel and maintenance costs

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