Key Takeaways
  • Gas cars have been the norm for over 100 years, but due to their harm to the environment, many have begun transitioning over to electric vehicles. 
  • Although electric vehicles are better for the environment, it is important to compare the two types of cars to determine which one is financially better.
  • Below are some factors that were taken into consideration when determining which type of automobile is superior.
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Ever since Elon Musk began working on his electric car company, Tesla, to start producing an electric vehicle and provide an alternative to the traditional gasoline-powered car, many have begun switching over to electric automobiles due to the lower fueling costs. As electric vehicles have been proven to possess many benefits, such as a lower average cost, it is essential to analyze the costs associated with both types of cars, to determine which one is ultimately better. 

 

Gas Car

 

Gas cars have been around for generations and are the usual standard when purchasing a vehicle. Although these internal combustion engine (ICE) vehicles have been the norm for over 100 years, many have begun switching to electric vehicles due to their constant environmental harm. Despite the rise in popularity of electric cars, gas cars are still produced, purchased, and driven by many, here’s why.

 

 

Lower Initial Cost

 

Many people may desire to purchase a Tesla Model 3 due to its sleek design and environmental benefits. However, due to the low number of electric vehicles produced compared to gas cars, their prices are much higher when purchasing a new one off the lot. Thus, as not many people have $60,000 lying around for an electric car, they buy a reliable car within their budget, typically a gas-powered vehicle.

 

Higher Recurring Costs

 

Although gas cars have a lower initial cost, other recurring costs, such as maintenance and gas prices, are higher than electric vehicles. Currently, as a result of the ongoing Russia-Ukraine conflict, the current national average is $4.244 per gallon, according to AAA. Furthermore, a gas car's average annual maintenance cost is $228, much higher than the yearly average of $77 spent on electric cars. 

 

Therefore, although gas cars have a lower initial cost, the high costs result in more money being spent than if an electric car was purchased.

 

Electric Vehicles

 

Moving onto electric cars, these pieces of machinery have been on the market for a fraction of the time that gas cars have. However, due to the various benefits associated with having an electric vehicle, many people have begun making the transition over the years. As nothing in the world solely has benefits, here are some advantages and disadvantages of being an EV owner. 

 

 

Higher Initial Cost

 

On average, the cost of an electric car is around $56,000, which is more than $21,000 higher than the average cost of a gas car, which is $35,000. So, although this type of car has a higher initial cost, the cost savings make up for it.

 

Fewer Charging Stations

 

One of the critical issues with owning an electric car is the scarcity of charging stations. As there are more gas cars than electric cars on the market and roads right now, most refueling stations are gas, and fewer are for electric cars, making it difficult to drive for long periods. However, installable electric chargers can be inputted in a garage, allowing an electric vehicle to charge at home. 

 

Tax Benefits

 

Per the Department of Energy, any new electric vehicle purchased in or after may be eligible for a federal tax credit of up to $7,500. This large tax credit is an additional benefit as those who own a new electric vehicle have to pay less when filing their taxes. 

 

CapWay Tip: If you wish to see if your car is eligible for a tax credit, click here to read more.

 

Lower Recurring Costs

 

As mentioned above, an electric vehicle's average annual maintenance cost is much lower than a gas car, with $77 for an electric vehicle and $228 for a gas car. The low maintenance cost provides a large incentive for those contemplating the transition, as the saved money could be put towards an investment or retirement savings account. 

 

Furthermore, another large benefit of possessing an electric vehicle is the lower refueling costs. Although both gas and electric rates have risen over the past couple of months, the price paid to refuel an electric car is much lower than a gas car. For example, in a Bureau of Labor Statistics report, for every additional 100 miles driven, a gas car would cost $14.08 on average, and an electric vehicle, $5.14, showcasing it is the cheaper option.

 

Which one is better?

 

Ultimately, an electric car makes more sense in the long term due to the higher amounts of money being saved. However, a gas car is more beneficial as a more cost-friendly option, as many cheap, reliable vehicles can get the job done without spending a large sum of money on maintenance. 

 

 

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