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EV vs. ICE Cost Comparison and Range Anxiety Management

Total Cost of Ownership: Fuel and Maintenance Savings

Comparing EV vs. ICE costs requires looking beyond the sticker price. Fuel cost is the biggest ongoing saving. The US average electricity rate is about $0.16/kWh (2024). A typical EV uses 3–4 miles per kWh, so driving 12,000 miles/year costs roughly $480–$640/year in electricity. A comparable ICE vehicle averaging 30 MPG at $3.50/gallon costs about $1,400/year in gas — a savings of $760–$920/year. Maintenance savings are substantial. EVs have no oil changes ($80–$150 each, ~twice/year), no spark plugs, no exhaust system, no transmission fluid, no timing belt, and no catalytic converter. The only regular consumables are tires, wiper blades, and cabin air filters. AAA estimates average EV maintenance costs at $0.061/mile vs. $0.101/mile for ICE vehicles — a 40% reduction. Over 5 years and 60,000 miles, that's roughly $2,400 in maintenance savings. Federal tax credits under IRA Section 30D provide up to $7,500 for new EV purchases (income limits apply: $150K single, $300K joint), and the Section 25E used EV credit offers up to $4,000. Combined, a buyer who qualifies for the full credit purchasing a $42,000 EV effectively pays $34,500 — less than many comparable ICE vehicles.

EV vs. ICE Cost Comparison and Range Anxiety Management

Total Cost of Ownership: Fuel and Maintenance Savings

Comparing EV vs. ICE costs requires looking beyond the sticker price. Fuel cost is the biggest ongoing saving. The US average electricity rate is about $0.16/kWh (2024). A typical EV uses 3–4 miles per kWh, so driving 12,000 miles/year costs roughly $480–$640/year in electricity. A comparable ICE vehicle averaging 30 MPG at $3.50/gallon costs about $1,400/year in gas — a savings of $760–$920/year. Maintenance savings are substantial. EVs have no oil changes ($80–$150 each, ~twice/year), no spark plugs, no exhaust system, no transmission fluid, no timing belt, and no catalytic converter. The only regular consumables are tires, wiper blades, and cabin air filters. AAA estimates average EV maintenance costs at $0.061/mile vs. $0.101/mile for ICE vehicles — a 40% reduction. Over 5 years and 60,000 miles, that's roughly $2,400 in maintenance savings. Federal tax credits under IRA Section 30D provide up to $7,500 for new EV purchases (income limits apply: $150K single, $300K joint), and the Section 25E used EV credit offers up to $4,000. Combined, a buyer who qualifies for the full credit purchasing a $42,000 EV effectively pays $34,500 — less than many comparable ICE vehicles.