Electric Vehicles: Greener and Often More Budget Friendly

Along with reducing emissions, electric vehicles provide long-term fuel and maintenance savings.

The Tesla 3, currently the best-selling electric vehicle on the market, may cost more up front, but an online tool developed by MIT’s Trancik Lab shows that many models provide long-term savings over gasoline-powered vehicles, which may make up the difference. (Image courtesy of Tesla.)

More and more electric vehicles (EVs) are making their way onto the roads across the globe. In 2019, the U.S. ranked third in global sales with 320,000. While several factors contribute to slower adoption of the vehicles than other nations, for consumers, it often comes down to money. New research shows that those up-front costs may be balanced by the long-term savings.

MIT’s Trancik Lab developed an online tool to help people better visualize the potential savings in monetary and environmental terms. While the data isn’t entirely new—a 2017 Electric Vehicle Life Cycle Cost Analysis indicated a potential annual savings of $600—seeing is often believing.

Using existing data from 2016 research and updated data, the MIT team developed calculations for carbon dioxide emissions from current car models, as well as car-specific lifetime operational and maintenance costs and purchase price. The framework of the tool is based on vehicles being driven 13,000 miles a year and lasting 15 years. Nearly any model can be plugged in to compare calculations, and the set of cars can be filtered by horsepower, powertrain, vehicle class and other factors.

A comparison of the top-selling gasoline vehicles, including two luxury ones, and a Tesla, indicate the EV emits significantly less emissions and is midrange in average maintenance and operation costs.

Although not surprising, the EV models are significantly better when it comes to emissions. While some gas-powered vehicles produced much less emissions than others, such as the Mitsubishi Mirage, none of them were under 300 lifecycle gCO₂eq/mile. Hybrids and plug-in hybrids fared a little better, but some of them were on par with traditional vehicles.

When it comes to the maintenance side, the statistics can get a little trickier. While EVs have fewer moving parts, which in itself often means less regular maintenance, the cost of a needed repair may be anywhere from 5 to 8 percent higher. On the flipside, the cost of general maintenance is much less per year. According to an analysis by Consumer Reports, EV owners save around 50 percent on maintenance compared to owners of gas-powered cars. Contributing factors include no need for oil changes and the use of regenerative braking systems.

EVs also provide a few other benefits, with fuel consumption being the main one. Not having to fill up on gas may save a driver up to $1,000 a year. Another bonus is a $7,500 tax credit on the purchase of a new EV, although it can’t be claimed for vehicles from manufacturers that have surpassed the 200,000th mark for qualified vehicles sold, which, not surprisingly, includes Tesla.

For consumers, especially those who are looking to go green, the manufacturing process itself may deter them from going with an EV. According to the Trancik Lab, those costs are often offset within 18 months of purchase.

While the data is pointing toward long-term savings, an EV’s battery pack continues to be a far-off yet lingering concern. Although most EV manufacturers offer around an eight-year warranty, if the battery pack fails, a replacement isn’t cheap—some are even more than $30,000. They are also prone to losing their charge over time. Luckily, reimagining driving also means reimagining batteries. With manufacturers focused on lowering costs, future lifetime cost-savings of EVs may make it easier to fork over a little more up front.