Conversations about the future of cars often depict a landscape painted with innovation, promising sleek, electric-powered vehicles that usher in a new era of environmental consciousness. While buying an electric car is an exciting leap forward, it has downsides, such as potentially higher price tags and developing charging infrastructure.

On the other hand, the traditional route offers the stability of what we’ve known – the reliable roar of a combustion engine. However, environmental concerns and fluctuating fuel prices put a damper on conventional cars. Here are the top eight factors affecting the decision of gas versus electric and what to know before buying an electric car.

Miles of Range on Charge

EV technology has come a long way in recent years. Where the first electric vehicles were lucky to go over 100 miles per charge, the standard is now 250 to 400 miles per charge (and the new Lucid Air gets up to 517 miles). Remember, while different electric cars offer varying ranges on a single charge, most vehicles will take you on typical trips of 50 to 100 miles without needing to stop. This range matches the lengths most people drive to get to their destinations. Plus, drivers taking road trips will naturally stop before the battery range expires to stretch their legs or use a restroom – an ideal time for charging.

That being said, it’s also crucial to understand that the range companies advertise for their EVs is an estimate. As a result, your actual mileage will vary because of weather conditions, use of air conditioning, and your average speed.

Charging Stations

Electric cars are a growing industry, and charging infrastructure is less developed than gas stations. As a result, you’ll need to be extra conscious about where you can charge and embrace the necessity of charging at home.

The typical 110-volt outlet in your garage can take days to charge a depleted EV battery to full. So, having an electrician install a 240-volt port is essential to getting a full charge overnight with a level two charger. According to J.D. Power, installation usually costs between $1,000 and $1,500.

Additionally, public charging has its own woes. Besides the limited availability of charging stations when you’re out and about, you might pay a surcharge for a public station. Additionally, you may have to wait for someone else to finish charging, which can take 20 minutes or more. Therefore, it’s recommended that you check the availability of charging stations in your area and along your typical routes.

Cost of Electricity

In some regions, electricity may be significantly cheaper than gasoline or diesel. Calculate the potential savings over time to assess the overall cost-effectiveness in your area.

For instance, CNET’s recent data on power prices shows that electricity in Louisiana costs 11.37 cents per kilowatt-hour (kWh) on average. On the other hand, it costs 27.42 cents per kWh in Maine. The average electric vehicle goes one mile per 0.35 kWh. So, if you drive 70 miles per day, it costs about $2.78 in Louisiana, while it costs about $6.71 in Maine.

Road Trips

Taking a road trip in an electric car means mapping out the available charging stations along the way. Failing to plan can leave you on the side of the road without a charge or waiting for an hour or more at a station.

What kind of car you drive is also a factor here. For instance, Tesla has the highest concentration of charging stations in the United States. So, Tesla drivers may have an easier time with road trips, while drivers of other brands may have fewer charging options and longer charge times between destinations.

Incentives and Savings

Governmental tax credits can put extra money in your pocket for owning an EV. Specifically, the federal government provides a clean vehicle credit of up to $7,500 for qualifying vehicles. Likewise, many states offer additional state tax credits ranging from $1,000 to $7,500. So, it’s crucial to review your state’s tax code for information on how much you’ll save. Additionally, the new federal conditions for the tax credit exclude some vehicles because of their batteries, such as the Tesla Model 3 and the Nissan Leaf.

Additionally, factor in savings on maintenance and fuel costs over the lifetime of the vehicle. For comparison, the U.S. Bureau of Labor Statistics estimates the average national cost of electricity is 17.3 cents per kWh. This means it costs about $21.19 to charge a car battery with a 350-mile range to full. On the other hand, the national average gas price is $3.19 per gallon as of January 2024. A car that gets 30 miles per gallon would cost about $37.22 in fuel to go the same distance.

Buying an Electric Car vs. Leasing

The eternal debate of buying vs. leasing extends to electric vehicles. Remember, the choice hinges on your preferences and financial situation. Owning the vehicle means making higher monthly payments on an auto loan but allows you to eventually pay off the car. Plus, you’ll receive the tax benefits mentioned above. However, you’ll also be responsible for vehicle maintenance.

The conventional wisdom around cars is that owning is usually less expensive than leasing in the long run. So, buying an electric car is recommended if you want it long-term. Otherwise, you’ll overpay for a vehicle you get rid of before you reap the benefits of ownership.

On the other hand, leasing means having a lower monthly payment than owning – but you’ll pay a monthly installment without ever having an end in sight. So, a car payment is a permanent part of your budget when you lease. Plus, you won’t receive the same tax benefits since you don’t own the car. The dealership receives the credit and decides for itself whether to pass on any savings to you.

Additionally, your lease agreement will restrict how many miles you can drive monthly, with financial penalties for exceeding the limit. On the plus side, the dealership usually handles some of the maintenance costs. When your lease ends, you can also jump into a newer vehicle, meaning you’ll never drive an old car.

New or Used

New mainstream electric car models typically cost around $30,000, while luxury options, like the top-tier Tesla Model S, can reach over $100,000. Opting for a new model ensures the buyer receives a complete warranty, access to updated technology, and the most extended range per battery charge. Furthermore, buyers of new qualifying vehicles will receive the $7,500 federal tax credit and state incentives.

However, buying an electric car that’s used also presents hefty cost savings. EVs from four and five years ago often go for $10,000 or less because they lack the latest upgrades and tech. Another advantage of used EVs is their lower mileage, as their range limitations often result in fewer miles driven than conventional vehicles, translating to less wear and tear. In essence, the decision to buy a new or used electric car involves a trade-off between the benefits of a full warranty and the latest technology versus potential cost savings and limited functionality of pre-owned models.

Car Insurance

EVs usually cost more to insure than traditional combustion-engine cars because they have higher sticker prices and repair costs. Electric cars are typically more expensive, presenting higher costs to drivers and auto insurance companies. However, experts at Consumer Reports predict that as insurers gather more data and EVs become more popular, prices will gradually decrease.

The Bottom Line

Deciding if an EV is the right choice involves carefully assessing your driving habits, charging abilities, and overall cost considerations. While the expanding range of modern EVs aligns with modern daily driving needs, charging availability can limit road trip opportunities. Plus, charging at home is a must, requiring installation costs for a charging panel with sufficient voltage.

However, electricity is cheaper on average than gas, providing annual fuel savings. Likewise, federal and state tax credits can defray the costs of owning an EV. Lastly, as the EV market evolves, keep in mind the developing charging network and anticipate potential decreases in insurance prices as the technology becomes more widespread. These factors will guide you in determining whether an electric vehicle is the right fit for your lifestyle and budget.