Electric vehicles have been getting more cost-effective for years, and a new study has just revealed that they are officially the cheapest option over their lifespans, Inside EVs reported.
Specifically, used EVs can save owners as much as $13,000 compared to internal combustion engine vehicles of the same size and category, assuming a 10-year life span for the vehicle, according to a new study from the University of Michigan published in Environmental Research Letters.
That may be surprising, given the higher price tag on new EVs compared to similar ICE vehicles. However, if you look at the prices for three-year-old used vehicles, the numbers are much closer together, and electric ends up as a much better deal.
"Transportation is the second-largest portion of the average household's budget and, in the new vehicle market, EVs are usually more expensive," said lead author Maxwell Woody, per Inside EVs. "But 70% of all vehicle purchases are used, and used EVs have the lowest cost of ownership across vehicle classes."
Once you have that lower purchase price secured, the savings keep piling up, because charging an EV is cheaper than fueling a gas-powered car.
EV owners can save an incredible amount of money, even beyond the norm, by doing their charging at home instead of using public chargers. The study assumed 80% home charging and 20% public charging, with home charging split between peak, off-peak, and part-peak hours. It also factored in the cost of installing a Level 2 charger at home.
While mid-sized SUVs displayed the most dramatic savings, used EVs won in every category, from sedans to pickup trucks.
"It's not the most positive news if you're in the market for a new EV, knowing that your resale value may be impacted by the faster depreciation," said senior author Greg Keoleian, co-director of the Center for Sustainable Systems, per Inside EVs. "But if you're in the market for a used vehicle, it's very positive news."
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