Are gas-powered or electric vehicles a better deal? EVs may win out in long run, experts say

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Sales of electric cars are poised for a boom, spurred by factors such as federal policy, technological advances and environmental concerns.

To that point, 41% of Americans are at least somewhat likely to buy an electric vehicle as their next car, according to a recent poll from the University of Chicago and The Associated Press.

Yet, many consumers view high cost as a deterrent — 60% cited it as a «major reason» they wouldn't purchase an electric vehicle, or EV.

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Most new EVs are luxury models with an average sale price of more than $61,000 — roughly $12,000 more than the auto industry average, according to Consumer Reports.

But upfront cost doesn't tell the whole story.

In many cases, electric vehicles can be a better financial deal for buyers over the long haul relative to their gasoline-only counterparts, after accounting for recurring costs such as maintenance, repair and fuel, i.e., gasoline or electricity.

Those costs tend to be lower for EVs and may therefore outweigh an initially higher sticker price over a multiyear ownership period, experts said.

The typical EV owner saves $6,000 to $10,000 over the life of most such vehicles compared with a gasoline-only model, according to a Consumer Reports study from 2020. The study compared vehicles of similar size and segment — luxury, for example — and defined a car's life as 200,000 miles.

Since that study was published, many EVs have gotten cheaper and conventional vehicles more expensive, said Chris Harto, senior transportation and energy policy analyst at Consumer Reports.

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