--- title: "EVs Are Cheaper To Own Than Gas Cars If You’re Financing: Study" description: "Electric vehicles may be initially more expensive, but for buyers who borrow the overall cost over the term may be lower than gas-powered equivalents." date: "2022-05-25" modified: "2022-05-25" authors: - name: "James Gilboy" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/james-gilboy" url: "https://www.thedrive.com/news/evs-are-cheaper-to-own-than-gas-cars-if-youre-financing-study" categories: - "Car Tech" - "Electric Vehicles" - "News" tags: - "Electric Cars" - "EVs" - "new cars" - "tax credits" --- # EVs Are Cheaper To Own Than Gas Cars If You’re Financing: Study ![2022 Ford F-150 Lightning facing the camera, with shrubbery in the background]() *Caleb Jacobs* It's typical for electric vehicles to initially cost more than an equivalent internal-combustion- or hybrid-powered model. But the vast majority of new car buyers pay for their vehicles via [financing](), 85 percent of them according to [Cox Automotive](). By spreading the upfront cost out over a longer period, EVs don't just become cheaper to run month-to-month than a conventionally powered vehicle: They work out to be slightly more affordable long-term, a recent study reports. [Energy Innovation Policy & Technology]() calculated multiple EVs' monthly and long-term costs with equivalent ICE models, such as the Ford F-150, and Hyundai Kona and Kia Niro twins. The study compares the costs of financing over a 6-year loan at their teaser rates, fuel and energy, insurance, maintenance, and available tax incentives and varying fees, all while accounting for variances by state. It concluded that the [F-150 Lightning]() and Kona EV were cheaper to own during loan repayment and long-term than equivalent gas models. The others were still cheaper in "about half of states," with the premium elsewhere being marginal—usually less than $15 a month. Over the vehicle's lifetime, anticipated to be approximately 12 years, the total ownership costs were estimated to come in around $6,000 less. ![]() *Energy Innovation Policy & Technology* However, the study's conclusion wasn't straightforwardly rosy in favor of EVs. While it touted increased cost savings after repayment of a 6-year loan, the higher prices of EVs pose a risk of a longer-term loan that may give an ICE model a brief edge. Vehicles with internal-combustion engines would also have a cost advantage for the entire duration of the repayment period without the $7,500 federal tax credit, the study admits (though EVs' operating costs and lifetime cost-to-own were still estimated to be lower). The proposed continuation and expansion of the federal tax credit has also [hit snags in Congress](), potentially jeopardizing one of EVs' cost advantages in the future. (The federal EV tax credit is also [riddled with problems]().) While [demand for EVs is growing across the globe](), supply remains an issue, as fragile supply chains and [climbing raw material costs]() strictly limit production. The report indicates that EVs may have an edge in cost over the long haul; getting one in the first place could be a challenge, though. *Got a tip or question for the author? You can reach them here: james@thedrive.com* ## Author James is a former staff writer for The Drive. He has changed the conversation around electrification, debunked misinformation online, and become a prominent hunter of what he calls "automotive cryptids." ### Author social links [Instagram]()