Electric Cars Offer Lower Maintenance and Energy Costs, but Faster Depreciation and Public Charging Can Erase the Savings
The federal electric vehicle tax credit once allowed qualifying buyers to reduce the cost of a new EV by as much as $7,500. Used-EV buyers could receive up to $4,000.
Both incentives ended on September 30, 2025, removing one of the most visible financial reasons for switching from a gasoline vehicle.
A review by Attorney Brian White found that the disappearance of those credits did not settle the debate over whether EVs remain worth purchasing. Instead, it placed greater importance on costs that buyers may overlook when comparing dealership prices.
Electric vehicles generally cost less to maintain and can be cheaper to power at home. However, they also tend to depreciate more rapidly, cost more to repair after collisions and expose owners to dramatically different electricity rates and registration policies depending on where they live.
Federal Credits Once Covered a Large Share of Depreciation
Five-year depreciation is the largest vehicle ownership expense in the United States.
The average vehicle loses approximately 45% to 46% of its original value over five years. Gas models generally lose between 40% and 50%, while EVs lose approximately 55% to 60%.
Five-Year Depreciation Comparison
| Category | Estimated Depreciation |
|---|---|
| Average vehicle | 45% to 46% |
| Gas-powered vehicle | 40% to 50% |
| Typical electric vehicle | 55% to 60% |
| Best-retaining electric vehicle | 30% to 40% |
| Worst-retaining electric vehicle | 65% to 70% |
Consider two vehicles purchased for $45,000.
A gas vehicle losing 45% of its value would retain approximately $24,750 after five years. An EV losing 60% would be worth about $18,000. That produces a resale-value difference of $6,750.
Before September 2025, a $7,500 federal credit could offset a gap of that size. Without the credit, buyers absorb the full effect.
Depreciation varies considerably by model. Early EVs with limited range and slower charging have experienced some of the steepest declines. Stronger resale values are emerging among vehicles with long battery warranties, established charging networks and competitive real-world range.
Owners Save on Maintenance Until a Collision Occurs
EVs generally avoid many of the routine expenses associated with internal-combustion engines.
Average basic service costs range from $150 to $300 annually. Many gasoline vehicles cost between $900 and $1,800.
EV owners avoid or reduce expenses involving:
- Oil and filter changes
- Exhaust repairs
- Spark plugs
- Engine belts
- Fuel-system maintenance
- Some transmission-related services
Recent analyses place EV routine maintenance savings at 35% to 50%.
Crash repairs move the comparison in the opposite direction. Repairing an electric vehicle after a collision costs approximately 20% more than repairing a comparable gas model.
The difference could rise to 30% by 2027 due to high battery prices, specialized technicians and structural vehicle designs that require large components to be replaced rather than repaired.
Battery warranties typically last eight to 10 years or 100,000 miles, which limits early replacement risk. The warranty does not eliminate depreciation concerns, collision damage or consumer anxiety about purchasing older used batteries.
High Gas Prices Have Restored Part of the EV Advantage
The loss of federal incentives occurred shortly before a major rise in gasoline prices.
The national average climbed from $3.14 per gallon in May 2025 to $4.50 in May 2026, an increase of 43.6%.
Gas prices rose rapidly during the first half of the year:
- February: $2.91
- March: $3.64
- April: $4.10
- May 12: $4.50
- May 28: $4.43
The May 2026 average approached the $4.56 recorded in July 2022.
California drivers paid the most at $6.15 per gallon. Washington averaged $5.77, and Hawaii reached $5.64.
Even states with the lowest prices remained close to $4 per gallon. Oklahoma averaged $3.94, Mississippi $3.98 and Louisiana $4.
All states experienced double-digit annual increases.
Largest State-Level Gas Price Increases
| State | Annual Increase |
|---|---|
| Ohio | 57.2% |
| New Hampshire | 56.0% |
| Michigan | 53.8% |
The largest metro increase occurred in Springfield, Ohio, where gas prices rose 71%.
For high-mileage drivers, these increases can produce thousands of dollars in additional annual fuel expenses, strengthening the case for vehicles powered by electricity.
Public Charging Can Cost More Than Driving a Hybrid
Home charging is one of the strongest predictors of whether EV ownership will save money.
Approximately 79% of prospective EV buyers expect to charge at home. Those who can do so generally pay lower energy costs and avoid regular trips to public stations.
Drivers without residential charging may face a much different result.
At 20°F, EV operating costs rose by:
- $32.11 per 1,000 miles with home charging
- $76.93 per 1,000 miles with public charging
Compared with hybrids, home-charged EVs remained $36.19 cheaper per 1,000 miles. Publicly charged EVs cost $86.26 more.
At 95°F, home charging made EVs $46.11 cheaper than hybrids, while public charging made them $41 more expensive.
Why Public Charging Changes the Equation
Public fast charging can involve:
- Higher electricity prices
- Station membership charges
- Waiting time
- Detours from normal travel routes
- Queues at busy locations
- Reduced availability in rural communities
- Higher demand during holiday travel
Most EV owners surveyed were willing to wait between 21 and 40 minutes for a fast charge. A gasoline stop typically requires only a fraction of that time.
Temperature Changes Range and Operating Costs
EV performance is highly sensitive to cold temperatures.
At 20°F, EV efficiency fell by 35.6% and range declined by 39%. A vehicle normally capable of traveling 250 miles could lose approximately 98 miles of range.
Hybrids also performed worse in the cold, but their fuel-economy decline was smaller at 22.8%.
Cold-Weather Effects at 20°F
| Measure | Hybrid | Electric Vehicle |
|---|---|---|
| Efficiency reduction | 22.8% | 35.6% |
| EV range reduction | Not applicable | 39% |
| Added home-charging cost | Not applicable | $32.11 per 1,000 miles |
| Added public-charging cost | Not applicable | $76.93 per 1,000 miles |
| Added hybrid fuel cost | $28.44 per 1,000 miles | Not applicable |
Extreme heat produced smaller losses. At 95°F, EV efficiency fell 10.4% and range declined 8.5%. Hybrid efficiency fell 12%.
Temperature therefore affects every electrified vehicle, but cold climates create the greatest disadvantage for fully electric models.
Charger Availability Depends Heavily on the State
Drivers in California and New York have access to charging networks that are vastly larger than those in many rural states.
| Rank | State | Charging Stations |
|---|---|---|
| 1 | California | 28,393 |
| 2 | New York | 21,380 |
| 3 | Florida | 8,231 |
| 4 | Massachusetts | 6,492 |
| 5 | Texas | 6,173 |
The smallest networks were concentrated in low-population states:
| State | Charging Stations |
|---|---|
| Wyoming | 43 |
| Alaska | 65 |
| North Dakota | 85 |
| South Dakota | 85 |
| Montana | 105 |
California had more charging stations than the five lowest-ranking states combined by a factor of more than 74.
Accessibility can still be limited in states with large networks. Bay Area research found that nearly 6 million residents had only 5.2 hours of feasible fast-charging access per day.
A charger may exist on a map but remain impractical because of distance, traffic, operating hours or demand.
Charging Prices Differ Almost as Much as Infrastructure
West Virginia had the highest average charging price at $0.529 per kilowatt-hour. Kansas had the lowest at $0.291.
That is a difference of $0.238 per kilowatt-hour.
For a vehicle using 30 kilowatt-hours to travel 100 miles, the same energy would cost approximately:
- $15.87 in West Virginia
- $8.73 in Kansas
Over 15,000 miles, the difference could approach $1,071, depending on efficiency and charging habits.
The five highest-cost states were West Virginia, Hawaii, Alaska, Louisiana and New Hampshire. The five lowest were Kansas, Missouri, Maryland, Utah and Iowa.
State Policies Create Winners and Losers
Seventeen states continued to offer EV incentives after the federal credits ended.
Available incentives ranged from approximately $1,500 in Rhode Island to $7,500 in Oregon and Maine.
However, 40 states imposed higher registration fees on EVs or certain hybrids. The fees were introduced to replace gas-tax revenue used for roads and transportation infrastructure.
New Jersey charged as much as $260 annually, while Hawaii and South Dakota charged $50.
Several states substantially raised fees between 2023 and 2025:
- Indiana: $150 to $230
- North Carolina: $140.25 to $214.50
- Tennessee: $100 to $200
- Wisconsin: $100 to $175
- Kansas: $70 to $165
- Nebraska: $75 to $150
Eleven states simultaneously offered EV purchase incentives and imposed higher registration fees.
California and Alaska ended their EV tax-credit programs. New Mexico introduced a new credit.
Georgia, Iowa, Kentucky and Oklahoma began taxing electricity sold through public charging stations.
Mileage Fees Could Become the Next EV Expense
Several states have started testing vehicle-miles-traveled systems.
| State | Mileage Charge |
|---|---|
| Oregon | $0.02 per mile |
| Virginia | $0.0114 per mile |
| Utah | $0.0111 per mile |
| Hawaii | $0.008 per mile or $50 annually |
A driver traveling 12,000 miles under Oregon’s program would pay $240, more than twice the state’s $115 standard EV registration fee.
Utah and Virginia cap payments based on their applicable registration charges. Hawaii allows drivers to select either a mileage fee or a flat annual amount.
Vermont postponed its expected mileage program until 2027, while California and Washington have conducted pilot programs.
Employers May Replace Some of the Lost Incentive Value
Workplace charging could become one of the most important EV benefits.
Only 15% of workers currently receive zero-emission transportation support from their employers.
Demand among those without access is substantial:
| Workplace Benefit | Employee Interest |
|---|---|
| Workplace charging | 98% |
| EV purchase or lease assistance | 91% |
| Home-charging discounts | Strong interest reported |
| Public charging memberships | Strong interest reported |
| EV rental access | Strong interest reported |
Free workplace charging can effectively eliminate commuting energy expenses for some employees. It can also make EV ownership possible for renters and residents who cannot install home chargers.
Large companies increasingly view charging access as a recruitment tool. Research found that 61% of large enterprises without EV fleets were preparing to introduce electric vehicles, charging programs or home-charging assistance.
EVs Are Still Worth It for Some Drivers, Not All Drivers
Attorney Brian White’s study indicates that the post-credit EV market is increasingly divided.
Electric vehicles remain attractive for drivers with home charging, long commutes, low local electricity rates and plans to keep their vehicles beyond the highest-depreciation period.
They are less financially compelling for consumers facing:
- High public charging prices
- Severe winter range losses
- Limited infrastructure
- Expensive annual registration fees
- Frequent long-distance travel
- Short ownership periods
- High insurance or collision-repair exposure
Federal incentives previously made the EV calculation easier by reducing purchase costs immediately. Without those credits, buyers must consider a much broader range of expenses.
EVs can still be worth purchasing, particularly as gasoline prices remain elevated. However, ownership savings are no longer determined by the powertrain alone. They depend on the driver’s location, charging access, climate, annual mileage and ability to absorb faster depreciation.