Understanding the Cost of Operating a Plug-in Electric Car

Are you considering getting a plug-in electric car? If so, you’re probably taking into consideration the cost of operating it. Being familiar with the cost of operating a plug-in car is key to making the right decision for you. If you’re ready to go green, here’s a breakdown of what to expect: Electricity & Charging Costs The primary cost of operating a plug-in car is electricity for charging the battery.

Summary:

How much you pay for electricity depends on where you live and your rate plan. In most cases, electricity costs will run between 10 and 25 cents per kWh. In other words, charging a fully-depleted battery may cost between $5 and $15.

You can also save money by taking advantage of EV incentives, such as lower rates during off-peak hours or free charging stations. So, it’s important to consider the incentives that are available in your area.

Maintenance & Repairs

• EVs require much less maintenance than a regular car. Since these cars have fewer moving parts, there’s less wear-and-tear over time.
• Battery replacement is the only expensive repair. If you have an EV with a battery pack that’s worn out, you may need to replace it for an estimated $5,000 - $6,000.
• Regularly scheduled maintenance is still a must with an electric car. It’s important to change filters, fluids, and replace brakes. But, since there are fewer parts to maintain, you can expect to save money on maintenance with an EV.

Insurance

Insurance costs vary by location and vehicle, but EVs tend to have lower insurance rates than regular cars. Because they’re less likely to be involved in a crash and they’re less likely to be stolen, insurers tend to offer lower rates. On average, you can save 10 to 15 percent on your insurance costs with an EV.

Depreciation & Resale Value

Depreciation and resale value are hard to predict, but EVs are expected to have better resale value than regular cars. Because there are fewer EV models available, your car is more likely to hold its value over time. When it comes to depreciation, it’s important to keep in mind that all cars, electric or not, will depreciate over time.

Bottom Line

The cost of operating a plug-in electric car depends on multiple factors, including electricity costs, maintenance, insurance, and depreciation. Thanks to incentives such as free charging stations, lower electricity rates, and discounts on insurance, it’s possible to find savings while operating an EV. At the end of the day, an EV’s cost of operation is likely to be less than a regular car.