Will an Electric Car Save You Money?
The experts at Consumer Reports found that your costs can vary widely depending on what you drive and where you live
It’s been a bumpy ride for electric vehicles lately. After the federal EV tax credit ended in 2025, many automakers turned their focus away from electrification just in time for gas prices to surge past $4 a gallon.
“After a significant sales drop, consumers are starting to get curious about EVs again,” says Jake Fisher, senior director of Consumer Reports’ Auto Test Center.
Photo: John Powers/Consumer Reports Photo: John Powers/Consumer Reports
Gas vs. Electric Car Savings Showdown
We put six EVs against similar gas or hybrid competitors to see how much you’ll pay in gas or electricity (if you charge at home) to drive 12,000 miles a year. Then we compared overall costs across different states that are representative of national energy price trends.
Energy Prices Used in the Comparisons
| California | Massachusetts | Florida | |
| Regular ($/gal.) | $5.82 | $3.77 | $3.92 |
| Premium ($/gal.) | $6.21 | $4.72 | $4.69 |
| Electricity ($/kWh) | $0.35 | $0.31 | $0.15 |
Luxury SUV: BMW iX vs. BMW X5
Winner: Electric
The all-electric BMW iX is about the same size as the gas-powered BMW X5. The MSRP of the iX is about $4,550 more than a comparable X5, but depending on where you live, gassing up the X5 should cost you between $2,300 and $3,300 a year, compared with the iX’s yearly electric bill, which could be as low as $625 in Florida and as high as $1,500 in California. We estimate that the iX should pay for itself in fuel savings in three to four years. The iX is an even better deal when compared with the plug-in hybrid version of the X5, which costs more than the iX and got only 21 mpg in our tests.
Small Car: Mini Countryman SE vs. Mini Countryman
Winner: Electric
The Mini Countryman SE is the all-electric version of the Mini Countryman. The two cars are virtually identical aside from their power source, but the SE stickers for about $6,300 more. The EV will save you about $1,400 a year if you live in Florida, but only about $720 a year if you live in Massachusetts. Most buyers will see savings from the electric SE in about five years, but buyers in the Northeast might have to wait eight or nine years.
Three-Row SUV: Hyundai Ioniq 9 vs. Hyundai Palisade Hybrid
Winner: Hybrid
The all-electric Ioniq 9 and Palisade Hybrid are both three-row SUVs, but the Ioniq 9 costs a whopping $16,710 more than the Palisade when equipped with the uplevel Calligraphy trim we bought for testing. Even though the Ioniq 9’s energy savings can be over $1,000 a year, depending on where you live, its price premium is so high that it could take 13 years to make up the difference in California and over 22 years in Massachusetts. However, Hyundai is currently offering big rebates on the Ioniq 9 that may shorten that gap significantly.
Truck: Chevrolet Silverado EV vs. Chevrolet Silverado 1500
Winner: Gas
It’s hard to compare electric pickup trucks, which tend to have features and capabilities that are different from those of their non-electric counterparts. For example, electric trucks usually struggle with towing, but the Silverado EV has a clever pass-through between the bed and cabin, and it offers extremely quick acceleration.
A major difference between the two is price: A Silverado EV costs $14,400 more than a comparably equipped gas Silverado 1500. Because the gas-powered truck has such low fuel economy and the electric version uses so much energy, payoff figures are particularly high in the Northeast, where electricity costs are high but gas prices are relatively low. In most states, a Silverado EV will pay for its price premium in eight to 10 years, but it would take over 21 years in Massachusetts at current prices.
Small SUV: Chevrolet Equinox EV vs. Chevrolet Equinox
Winner: Gas
The Equinox EV stickers for nearly $9,500 more than a gas-powered Equinox. Paying off that difference with energy savings can take six years in California but 16 years in Massachusetts. However, there’s a wrinkle in this equation: Chevy is currently offering an $8,000 incentive on the electric Equinox EV, which would eliminate most of its price premium over the gas-powered model.
Used Car: 2023 Kia Niro EV vs. 2023 Kia Niro
Winner: Electric
When it comes to used cars, the EV is often the less expensive choice up front. Our analysis found that a comparable all-electric Kia Niro EV sells for about $4,000 less than its hybrid-powered counterpart. Your savings would be immediate and—unless you live in some parts of the Northeast—would continue for as long as you own the car. In Massachusetts, the Niro EV would cost about $1,100 a year to charge. But the highly efficient Niro hybrid would cost you only about $920 a year on gas.
More Ways to Save When Buying an EV
Before deciding whether to buy an EV, see if your utility company offers discounted “off peak” charging or if free charging is available at work or in your neighborhood.
A handful of automakers still offer limited free access to certain high-speed public chargers after a vehicle purchase, but those deals are few and far between. If you plan to rely on public chargers, note that some can cost more per mile than gas.
The Department of Energy’s Alternative Fuels Data Center has an easy-to-use calculator that takes into account all factors. Although a federal tax credit of up to $7,500 ended in 2025, some states still offer tax credits on EV purchases.
Do EVs Cost More to Maintain or Repair Than Gas-Powered Cars?
In theory—because EVs lack engines, complex transmissions, and fuel or exhaust systems—they should cost less to service than gas-powered vehicles. But unexpected repairs can add up. Based on our surveys of hundreds of thousands of vehicle owners, we found that EVs and PHEVs have 80 percent more problems on average than gas-only cars.
“EVs are based on new technology—and some automakers are just making their first forays into the EV market,” Fisher says. “The companies might not have had the time to work out all of the production and design issues.” As a result, new EVs might have more problems early on.
To compensate, EVs offer generous warranties on parts like batteries and electric drivetrains (usually around eight years or 100,000 miles). To reduce the chance of problems, Fisher suggests starting with CR’s list of recommended EVs, and—as is our advice for gas-powered cars—sticking to ones that have been on the market for at least two years.
In addition, EVs can have unique maintenance needs. For example, they may need specific tires to cope with their additional weight and on-demand torque.
