Cost of electric vs. gas vehicles: You might be surprised!

News
Published on September 9, 2019

Anyone who says electric cars are always more expensive than their gas-powered counterparts should think twice and redo their homework. The best tool for the job is the CAA Driving Costs Calculator.

A brand new gas-powered car typically costs[1] between $7,200 (subcompact) and $11,000 (SUV) per year. How about electric vehicles? They come out ahead in multiple scenarios if provincial and federal grants totaling up to $13,000 are factored in. Let’s take the Hyundai Kona and Volkswagen Golf as examples, as they both are available in electric and gas versions.

  • Gas Kona: $8,100 per year
  • Electric Kona: $6,600 per year
  • Gas Golf: $7,100 per year
  • e-Golf: $5,400 per year

Electric cars also cheaper for low mileage

Electric cars with standard options (see footnote) are easily less expensive than their gas-powered counterparts when they are kept for five years and government incentives and all expenses are taken into account. Even for families that don’t do much driving, electric vehicles come out on top.

Government incentives and energy savings are keeping electric vehicles competitive in the current market, despite the higher initial purchase cost. In our example, the calculator estimates that monthly payments on the Hyundai Kona go from $370 to $625 for the electric model. Energy costs, on the other hand, range from $170 per month for gas to $24[2] for electricity.

Another thing to consider is that maintenance costs are much lower. Plus, electric vehicles have a higher resale value due to their higher initial cost, although depreciation is still difficult to predict.

A must-have shopping tool

Determining operating costs for a vehicle is no easy feat. A range of variables must be factored into the equation. The CAA calculator accounts for purchase price, depreciation, insurance, maintenance, driver’s licence fees, registration, and energy costs. All you have to do is enter the make, model, and features and the CAA calculator will give you a reliable idea of how much the vehicle will cost.

Price of insurance: Check before you buy!

The calculator can tell you a lot, but not everything. For example, it uses a standard premium for insurance. But your premium could be double, depending on a range of factors, including where you live, the cost of repairs, and the theft rate for a particular vehicle. “When choosing between two vehicles, the price of insurance can sometimes tip the balance,” said Suzanne Michaud, Vice-President, Insurance at CAA-Quebec. It’s always worth contacting your insurance company before making a decision.

Automotive Advisory Services can help make shopping a breeze

The experts at CAA-Quebec’s Automotive Advisory Services are on hand to help members through the shopping process. Is an electric car right for you? Which model is most reliable? Cheapest? Most comfortable? Best resale value? Put your questions to them, they have an answer for (almost) everything!

[1] 20,000 km per year city and highway driving, gas at $1.18 per litre, sold after 5 years.

[2] The cost of electricity may vary depending on the rate in force at the time of charging.