A new study by researchers at the University of Michigan has suggested that previously-owned electric vehicles offer car buyers the lowest lifetime cost of ownership compared to other vehicle powertrains.
The study, which was published in the Environmental Research Letters journal, examined the lifetime ownership costs of various vehicle classes, including battery-electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in hybrids (PHEVs) and traditional internal combustion engine (ICE) vehicles
In particular, the researchers focused on vehicles that were three years old at the time of purchase, assuming that they would still be in use in their tenth year.
Among all the vehicle classes assessed, BEVs displayed consistently lower total ownership costs compared to petrol, diesel or other forms of electric vehicles – as the researchers determined, a three-year-old used electric midsized SUV could deliver lifetime savings of around $13,000, compared to $3,000 for an ICE equivalent.
Lowest cost of ownership
“Transportation is the second-largest portion of the average household’s budget and, in the new vehicle market, EVs are usually more expensive,” commented Maxwell Woody, the lead author of the study, and research assistant at the U-M Center for Sustainable Systems (CSS). “But 70% of all vehicle purchases are used, and used EVs have the lowest cost of ownership across vehicle classes.”
The study drew on data from multiple sources, including virtual vehicle models developed by Argonne National Laboratory, monthly gas and electricity prices from 17 US cities, and pricing information from Craigslist.
This comprehensive resource – including four million raw data points – enabled the researchers to calculate purchase prices and depreciation, with data also gathered on recurring costs such as insurance, maintenance, repairs, fees and fuelling/charging.
“I was surprised by how consistent the result was. I expected EVs would be cheaper in some scenarios, for some cities or vehicle types,” Woody added “But their costs were consistently lower across all vehicle classes and in almost all the cities.”
Decarbonising the transition
Senior author Greg Keoleian, professor at SEAS and co-director of the CSS, added that he was hopeful that the study could help drivers choose used vehicles with lower carbon emissions.
“Encouraging more adoption of EVs is key to decarbonising the transportation sector and cost is a big factor in purchasing decisions,” he said. “So this is positive news, I think, for helping encourage consumers to buy EVs.” Read more here.
