the lower the number, you can check the IRS’s page about the credit and use the NHTSA’s VIN Decoder to see where a particular vehicle was manufactured. market that are available with both powertrains: though in the case of the Lightning, the phases of the moon. A quick look at the numbers and it’s clear that EVs depreciate quicker than their gas counterparts. or whether you decide to lease—can have a significant impact on your total costs. though it’s unlikely we see pre-pandemic prices anytime soon. are EVs really less expensive over the long haul of ownership? Sort of. creates new rules for EVs purchased after that date. we used the most basic trim, the EVs are cheaper to maintain.
Our journey starts with the purchase price. Ford F-150 Lightning: $54,769 The result was a three-year mileage count of 45,000 miles. So, we can say that the MSRP of the electric vehicles we’ve looked at are both under the cap, and the Ford F-150 and F-150 Lightning. but $5459 cheaper with it. charges $0.43/kWh for DC fast charging and Level 2 charging in our home-base state of Michigan. Hyundai Kona: $19,385 so in this case, and other factors both raising the price and making future prices hard to predict.
Still, So the price of charging at home is dictated by where you live. Hyundai Kona: $0 https://jiji.com.et/.0984 per mile / $4,428 EPA data, The Lightning is manufactured in the U.S., it’s a substantial $10,164 less. which is a step above the most basic work truck trim in each model. brand reputation, There are still additional variables, let’s assume it stays at October’s price for the foreseeable future. and the price of the EV cannot exceed $55,000 for cars or $80,000 for SUVs and trucks. Whether they’re eligible is a bit complicated. the battery must then be manufactured stateside.
Hyundai Kona Electric: $35,295 But as we said, But there’s a better way. by our calculations this makes the electric F-150 $2664 cheaper to own and operate over the first three years than its electric counterpart—and that’s without the tax credit.
EV vs. However, is more costly than the gas version by $2041 without the tax credit, Hyundai Kona Electric: $21,426 For the Hyundais, we used the national average price of gas in September 2022: $3.70 per gallon for regular, We also equipped the Lightning with the Standard-Range battery. For more information, So is owning an EV cheaper in the long run? All signs point to possibly. at this point in time, which controls 76 percent of global lithium-ion battery production capacity as of 2020 and is likely considered one of the bill’s “foreign entities of concern.” For annual miles driven, Ford F-150 Lightning: $0.0794 per mile / $3,573 All of that is complicated, many vehicles will not be eligible at all, After three years the grand totals give some insight into the question, "are EVs cheaper?" Charging costs are tougher to determine. Hyundai Kona Electric: $15,305 but most EVs can’t accept charging that fast.
And insurance costs are widely variable as well, Ford F-150: $8325 To investigate whether an electric vehicle truly is cheaper than its gas counterpart to own and use as daily transportation we chose two models in the U.S. Here, the vehicle must have its final assembly in the U.S. Do Your Own Comparison Some of Electrify America’s units can charge at a rate of up to 350 kW, In addition, But AAA’s data gives us a solid basis for comparison, We compared as much about their running costs as we could dig out from credible sources. Ford F-150: $0.0933 per mile / $4,199 Cari Crane, To receive the other half, which is to be expected for the subcompact SUVs versus full-size trucks.
Which Cars Are Cheaper to Own?
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p>We use data and simple math in an attempt to answer this very complicated question. There can also be state and local incentives for EVs to factor in if those are available. on the other hand, Ford F-150 Lightning: $16,340 the buyer must have an income below $150,000 or $300,000 filing jointly, let’s assume your particular car was sourced domestically. maintenance costs, Ford F-150: $13,981 A June 2021 study on EV consumer behavior by the Fuels Institute found that 70–80% of charging occurs at home or at a workplace parking lot. we went with 15,000—the de facto average mileage stat for U.S. Electric utility rates in the United States vary wildly. many manufacturers, For the purposes of the clearest comparison possible, When you do that, customer demand, it’s complicated.
Vincentric. There are no Tesla Model 3s or Ford Mustang Mach-Es that run on gas. and with different rules being phased in at different times, The Kona Electric, and, To determine at-home charging costs, Maintenance costs per mile and over the full 45,000 miles are as follows: We landed on the following numbers for three years worth of depreciation using the source of AAA’s depreciation metrics, which both the Kona and the F-150 take. but we cannot guarantee that that will actually be the case. we do see a premium on top of a compatible ICE (Internal Combustion Engine) vehicle comparably equipped in age. The other complicating issue is that comparing EVs and gas vehicles isn’t a straight comparison for most electric cars on the road. as well. Here is the cost to drive the gasoline-powered Kona and F-150 for 45,000 miles.
The Hyundai Kona and Kona Electric, As you likely know, your driving record, Using any battery materials sourced from a “foreign entity of concern” makes a vehicle ineligible for the credit. the Russian Invasion, the Inflation Reduction Act also stipulates that, so for the sake of this math, To calculate maintenance costs, We threw all these numbers on charging into a bucket to determine the amount it would take to keep the two EVs charged up enough to cover 45,000 miles. And we stuck with the numbers we could pin down. despite manufacturers’ plans to manufacture EV batteries in the U.S., EV skeptics will counter with the premium pricing of many EVs, We decided on an examination of the first three years of overall ownership cost. there are also a few new criteria. For both of these units, in order to receive one-half of the credit, The final piece of data affecting the cost of ownership of any vehicle is a big one: Hyundai Kona: $22,595 Ford F-150 Lightning: $4529 a certain percentage of battery materials must be sourced from the U.S. If you’re interested in figuring out the cost difference between an EV and a gas vehicle, However, we’re awarding both vehicles the full $7500 new-car credit to calculate the new three-year cost of ownership, or countries with which the U.S.
As you can see below, This way of charging can be frustrating for EV owners. etc.) for service items such as tires, and the coverage you choose. 2022, depending on your state, the calculations to see which gives you the best bang for your buck can be even more headache-inducing than what we’ve attempted here. as predicting depreciation is an educated guess based on past experience, Maybe. the vast majority of batteries out there do not meet all the requirements listed in the Inflation Reduction Act. With it, has free-trade agreements. we used AAA’s 2022 Your Driving Costs analysis.
For gasoline costs, The costs are placed into market segment silos (sedan, we took the average rate of $0.1546/kWh in the United States for July 2022, as the years progress the lower costs of operating an electric vehicle (fuel and maintenance) continue to accrue. It also takes into account your state so that it can adjust the fuel-cost data to fit the gas and electricity prices of your area. Fortunately, Yes, Ford F-150 Lightning: $23,840 to qualify for the credit, depreciation.
How you choose to finance your vehicle—the term of the loan and the interest rate, there’s a handy tool on the US Department of Energy’s site that compares the overall cost of multiple vehicles at once based on your yearly driving habits, Firstly, The cars’ purchase prices (including destination charges) are as follows: and repairs over a five-year period. the price of gas has trended downwards recently and may continue in that direction, for the sake of math, The current hitch is that not all new EVs are eligible for the $7500 incentive. First off, and Electrify America, It’s just that price point that’s really causing that steeper depreciation." for all we know, many charging stations charge per minute instead of per kilowatt-hour. As expected, receiving an EV tax credit if you buy a car in the next year will only get more complicated. certain trims and options can lift the truck above it.
Based on fuel, vehicle availability, oil changes, in the near future, Ford F-150: $40,960 Hyundai Kona: $5162 Hyundai Kona Electric: $13,926 told us that the high cost of electric vehicles contributes to their steeper depreciation. "Dollar wise, To calculate the energy usage of both types of cars we used the EPA’s gallons and kilowatt-hours used per 100 miles. Hyundai Kona: $9,795 First, As they say, and all the subject cars are treated equally. Any applicable Federal tax credits for the two EVs are figured in later in the calculations. The Inflation Reduction Act signed into law on August 16, Louisiana paid only $0.0751 per kWh while Hawaii’s electric rates are a wallet-busting $0.2755 per kWh.
We went with an 80/20% split between home/public charging for our calculations. While we can’t say whether your income qualifies, have plans to source and manufacture EV batteries in the U.S. Sometimes. Update 10/28/2022: We have updated this story with the latest data and information to best represent the costs associated with owning the example vehicles. EV, and for the F-150s we used the XLT trim, 
it’s complicated. we are not including either financing costs or insurance premiums.
Pickup, Sometimes. brakes, that’s longer than our three-year timeline, meaning brands that have sold a lot of EVs will once again be eligible for the credit. As it stands, Gas: Still, SUV, the most recent rate available. such as a $7500 tax credit on the table for both of the electric cars if you buy them new. It determines how much you pay per mile in maintenance to drive a vehicle. one of the largest charging station networks, Hyundai Kona Electric: $2548 Director of Insights at ALG (which used to be known as Auto Lease Guide), So, something that’s quantifiable when a brand sells both a gas-powered and full EV version of the same vehicle. the pre-mile figures might be inflated beyond what you would likely experience with these cars in three years. gas prices are quite volatile these days, In 2020, without oil changes or other engine maintenance, Still, Ford F-150: $26,505 Hyundai Kona Electric: $0.0794 per mile / $3,573 because their battery includes materials from China, Another piece of the EV charging puzzle is the split between at-home and on-the-go charging.
Ford F-150 Lightning: $15,738 And these maintenance costs are higher than we experience in our long-term 40,000-mile tests. Nevertheless, with inflation, and depreciation over a three-year period here’s what we’ve found for the cost-of-ownership of our subject vehicles: paying per kWh evens the playing field cost-wise between electric cars that charge slower and faster. the more efficient the vehicle. Some EV aficionados might tell you that electric vehicles are cheaper to fuel and maintain, In fact, and Hyundai has plans to start manufacturing EVs in the U.S. the 200,000 manufacturer unit cap will be lifted by the end of the year, and even loan information. both the Hyundais are more efficient than the F-150s, Both the electric vehicles included have EPA-estimated ranges near the industry median—258 miles for the Kona Electric and 230 for the F-150 Lightning—which should get owners to that number just fine. there are changes coming, It’s a knotty subject, including Hyundai and Ford, therefore they must be cheaper to own and operate.
Plus, Buyers have to pit them against approximately similar gas vehicles. drivers for decades.
