Electric vehicles (EVs) have been gaining popularity for their environmental benefits and potential cost savings over time. Many people praise EVs for being cheaper to own in the long run, despite the higher upfront investment. But is this really the case? In this blog, we will delve into the hidden costs of owning an EV, using real data from owning a Tesla Model 3 and comparing it to an old gas car, a Hyundai Sonata.
One of the often overlooked costs of owning an EV is insurance. While insurance costs vary depending on the individual, it is essential to consider this expense when comparing the cost of ownership. In the case of the Tesla Model 3, the insurance cost was more than twice that of the Hyundai Sonata, even with similar coverage options.
Another significant cost to consider is registration fees. In California, where the author resides, the registration cost for an Electric Vehicle is significantly higher than that of a gas car. This is due to the state’s reliance on gasoline taxes for road maintenance. As a result, EV owners end up paying more in registration fees, adding to the overall cost of ownership.
Additionally, other fixed expenses such as smog checks and oil changes need to be factored in when calculating the total cost of owning an EV. These costs may seem minor, but they add up over time and contribute to the overall cost of ownership.
When it comes to fuel savings, driving an EV can lead to significant savings, especially with the lower cost of electricity compared to gasoline. The author calculated that driving the Tesla Model 3 saved them around $132 a month in gas costs. However, this savings is offset by the higher fixed monthly expenses of owning an EV, such as registration and insurance.
In the long run, the author estimated that owning the Tesla Model 3 would save them about $600 a year, resulting in savings of $12,000 over 20 years. While this may seem like a substantial amount, it is essential to consider other factors such as tire maintenance and potential service costs for the EV.
Overall, owning an EV may not be as affordable as initially thought, especially when considering all the hidden costs that come with it. While EVs offer many advantages, such as environmental benefits and potential fuel savings, it is crucial to do thorough research and consider all expenses before making the switch. By understanding the full cost of ownership, individuals can make informed decisions about whether an EV is the right choice for them.
