Why Are EVs So Expensive?

2023 Volkswagen ID.4 Charging
 

Electric cars cost, on average, $53,469 as of July 2023, compared to the average cost of gas-powered vehicles at $48,334. The difference is about $5,000. And the average price of owning an EV is much less than premium vehicles or high-end luxury models in Lehighton.

 

 

But the average prices do not give you the full picture of EV ownership for your Lehighton lifestyle. Find out more information about why electric cars are so expensive with our guide. We’ll debunk the myth that electric cars are actually more expensive!

Why Are EVs So Expensive to Purchase?

The large battery pack found in EVs, typically under the cabin, is the reason why EVs are so expensive. However, the costs of batteries are coming down as more and more automakers invest in them while researching less expensive ways to make them. Also, as battery technology improves, you’ll see batteries with longer rangers and extended battery life.

Are Electric Cars More Expensive?

No, they are not. Here’s why. When you purchase the right one, such as a Volkswagen ID.4, you could actually get federal government incentives of up to $7,500 through 2032. Starting in January 2024, the $7,500 incentive amounts to a price reduction at the dealership level when you buy it! Therefore, you can take the price of an EV and reduce it by $7,500 on the spot. At that point, EVs may actually be cheaper than comparable gasoline-powered vehicles.

So, electric cars are not more expensive than gasoline-powered ones. 

But you also have to consider the overall costs of EV ownership, which is generally cheaper than that of a gasoline-powered vehicle.

What About an EV’s Cost of Ownership?

Over the course of owning your electric car, the EV’s cost of ownership can actually be 40% lower than a gasoline-powered vehicle. Part of the reason is due to fuel costs. Electricity, when you charge from home, is much cheaper than gasoline’s price per gallon. In 2021, the U.S. Department of Energy found that it cost between $500 and $850 in refueling costs for EVs. 

As you look to charge at home, an NPR study found that charging an EV overnight at home in Lancaster, Pennsylvania, costs $7. And two 30-minute charging sessions at a public station cost $5 each. Fuel for an EV costs about 60% less than gasoline!

Costs of EV Maintenance

EV maintenance is a lot less, and electric cars are more reliable than gasoline-powered vehicles. EVs have fewer moving parts, so there are no oil changes, sparkplug changes, or transmission service. Because EVs use regenerative braking, you’ll need fewer brake pad replacements. 

According to Consumer Reports, “The typical total ownership savings over the life of most EVs ranges from $6,000 to $10,000. The exact margin of savings would depend on the price difference between the gas-powered and EV models that are being compared.” 

In other words, savings vary, but you can reasonably expect to save between $6,000 to $10,000 by purchasing an EV vs. a gas car over the long run.

Test Drive a New Volkswagen EV Today at Bergey's VW of Wilkes-Barre!

Ready to take the plunge into EV ownership? Contact us or call 570-515-0500 to schedule a test drive with our team. We think you’ll love one of our selections for your Bloomsburg drives!


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