The total cost of ownership of a mid-sized electric SUV can vary by as much as $52,000 over the vehicle’s entire lifespan, depending on which US state the owner lives in, a new study has found.
The study, by the University of Michigan, found that New York City and Detroit have the highest insurance costs on electric vehicles, while charging is most expensive in San Francisco, Los Angeles and Boston, and least expensive in Atlanta, Chicago and Cleveland.
Charging behaviours can also play a role in the total cost of ownership, the study found. Home charging can lower the total cost by $10,000 on average, or as much as $26,000, even when including the cost of installing a charger.
EVs ‘cheaper over time’
The study was published in the Journal of Industrial Ecology, and noted that while gasoline vehicles are generally less expensive to purchase, electric vehicles emerge as less expensive over time through lower maintenance, repair and fuel costs.
“Electric vehicle sales have seen significant growth, accounting for 8% of light-duty vehicle sales through May 2023, compared to 2% in 2020,” commented study lead author Maxwell Woody, a doctoral student at the School for Environment and Sustainability and researcher at the school’s Center for Sustainable Systems.
The study also found that small and low-range electric vehicles are less expensive than similar-sized gas vehicles in all 14 cities included in the study.
In terms of larger, long-range electric vehicles, however, gas counterparts offer better value, while mid-sized electric vehicles can reach cost parity in some cities.
‘Cost competitive’
“Our findings show that electric vehicles can be cost-competitive with gasoline vehicles for the 14 cities we studied across the US,” added senior author Gregory Keoleian, U-M professor of environment and sustainability and director of the Center for Sustainability Systems. “In addition to charging cost advantages for electric vehicles over gasoline fuelling costs, there are lower maintenance and repair costs.”
In 2021, transportation was the leading source of greenhouse gas emissions in the United States, accounting for 28% of total emissions.
“Electrifying vehicles is essential, but not enough. We need to maintain emissions standards for gasoline vehicles, continue cleaning the electric grid, and invest in walkable, bikeable & transit-oriented cities."
— Global CO2 Initiative (@reuseco2) January 2, 2024
Kudos to you #MaxwellWoody & @UMSEAS!https://t.co/SNbjBnzjRC pic.twitter.com/xx1CelXnta
