In 2019, we were in the market for a new-to-us vehicle, with a budget of $15k. Working through our electric vehicle vs. gasoline vehicle business case, we could see that driving any gasoline vehicle for years, when electric vehicles are available, will cost potentially thousands of dollars more per year. Over the 16-year lifespan of our prior gasoline vehicle, we spent approximately $20,000 on gas and oil changes, and this amount is our savings target in our comparative business case, below.
Our Prior Gasoline Vehicle:
In the early 2000s, we bought a new, efficient vehicle (for the time): an Acura with a Honda engine. We drove this vehicle for 16 years, until the transmission failed (for the second time) on a snowy New York mountain and we barely limped into a repair shop.*
The gas for this vehicle cost us, with our driving patterns, an average of $100 per month. For 16 years, we spent approximately $1200 per year on gasoline, as we calculate in the table below. Our oil changes cost on average $50 every 5000 miles, and we spent $800 in oil changes in 16 years. Using this average yearly cost for all 16 years, we can see in the table below that we spent approximately $20k on gasoline and oil changes for our vehicle in 16 years of driving that vehicle. We also drive on average 5,000 miles per year in our vehicles, which is lower than the US average of 12,000 driving miles per year in a vehicle; the average American may spend even more than we did, on fueling gasoline powered vehicles.
| Cost Categories | Our Gasoline Vehicle | Our Electric Vehicle |
| Gasoline Fueling vs. Electric Charging cost per year | $100 gas/month x 12 months/1 year = $1200 per year | $4.32/month x 12 months = $51.84 per year |
| Fueling vs. Charging costs, for 16 years | $1200 gas/year x 16 years = $19,200 for 16 years | $51.84/year x 16 years = $829.44 for 16 years |
| Oil change costs per year | $50 for oil changes per year | $0 for oil changes per year |
| Oil change costs for 16 years | $50 oil change/year x 16 years = $800 for 16 years | $0 oil change/year x 16 years = $0 for 16 years |
| Total Fueling vs. Charging costs + Oil changes for 16 years | $19,200 + $800 = $20,000 for 16 years | $829.44 + $0 = $829.44 for 16 years |
vs. driving an electric vehicle under the Austin Energy all-you-can charge plan for 16 years.
Our Electric Vehicle:
In 2019 we bought a used 3 year-old Volkswagen e-Golf (BEV) with 8,000 miles on it for $14,000 (If you’re wondering, it also carries an 8 year manufacturer’s warranty on the battery).Our e-Golf sold for almost $33,000 when it was new, so we feel like we got a great deal on a like-new car. We use the e-Golf just like we used our old Acura — commuting, hauling kids and groceries, and for short trips in mostly urban settings.
The electric vehicle charging program through Austin Energy allows us unlimited charging for $4.32/month for Level 2 charging, powered by Texas Wind. Our e-Golf’s range is roughly 100-110 miles when fully charged, depending on the outside temperatures, and we’ve never been stranded! Our yearly charging costs are calculated in the table above as $51.84 per year, with community EV charging. If we keep this vehicle for 16 years with a similarly priced charging program, we can expect a total outlay of $829.44 in total charging costs. Compare this amount (under $1000!) with the nearly $20,000 in gasoline and oil changes spent on our prior vehicle!
The Comparison:
Our quick business case results: Spend $20,000 on gasoline vs. $829 on electric charging. We opted for the electric vehicle. Even if we’re not including some costs, even if we end up replacing the batteries after 12 years, it still looks like the much more affordable option. I know the oil and gas industry doesn’t like to hear it, but their product is expensive, polluting, and is becoming unnecessary. The alternative electric vehicle options suit our daily life.
It still surprises me that our adorable, low mileage electric vehicle is so affordable. And the electric program in Austin of $4.32/month is good, but it was even better in upstate New York. The community’s EV chargers were free when we lived there, so the savings would be all of the vehicle fuel costs avoided. If you’re not sure about the EV charging options in your community, reach out to your local utility and ask what they’re doing to support EV drivers in your area.
We made our decision to buy a pure electric vehicle by comparing the long-term future charging costs of the EV we purchased with our prior long-term gasoline purchases. You should do the same. There are so many other things the average American can do with gasoline savings of $1200 per year, or $20,000 every 16 years! The gasoline fuel costs add up, for any vehicle that still uses fossil fuels. The electric vehicle ranges are getting longer every year, and more new and used electric vehicles are coming onto the market all the time. Think about your own business case, and we’d love to hear from you!
*I mention this major system/transmission failure on our prior gasoline vehicle primarily to counteract any argument about EV batteries or related new technologies: we have already spent many thousands on transmission and other repairs for our prior gasoline powered vehicle. I don’t include these repairs in the cost analysis because no vehicle is immune from any repairs over 16 years, and I can’t estimate repairs yet on the VW EV, because it doesn’t have such a long history. I am glad to get away from the gasoline powered transmission, though. All the electric vehicles we looked at had 8 or 10 year battery warranties, which offset any concerns we had about early adoption of the new technology.