With gas prices quickly surging, you might be wondering if now is the right time to trade in a gas-powered vehicle for an electric one.
As of Tuesday morning, the average price for a gallon of regular gas in the U.S. was $3.53, according to AAA — 61 cents more than a month ago. Rising fuel costs could be putting a strain on many Americans’ budgets.
But is it worth switching to electric?
RELATED STORY | Idaho gas prices spike nearly 30 cents in a week, squeezing farmers and small businesses
According to 2024 Department of Energy data, the typical gas-powered car averages 24.4 miles per gallon. That means it would cost about $14.47 to travel 100 miles at current prices.
How does that compare to electric?
The U.S. Energy Information Administration says the average cost of electricity is 17.2 cents per kilowatt-hour, though rates vary by region. In California, prices are roughly double the national average, while many customers in the central U.S. pay less.
U.S. News & World Report ranks the Tesla Model Y as the country’s best-selling electric vehicle. It has an 80-kWh battery and a range of 303 miles. Traveling 100 miles in a Model Y at typical electricity rates would cost about $4.58 — roughly one-third the cost of driving a gas-powered car the same distance.
The Model Y’s MSRP starts at $39,990, which is more than $9,000 below the average new vehicle price, according to Kelley Blue Book.
At current gas prices, someone driving an average gas-powered car 12,000 miles a year would spend about $1,736 annually on fuel. A Model Y driver would pay about $549 a year to charge their vehicle.
While the Model Y may carry a higher upfront price than some traditional vehicles, there are less expensive EV options.
The Chevy Equinox EV starts at $34,995, about $6,000 more than its gas-powered counterpart. It has an 85-kWh battery and a range of 319 miles. A standard Equinox averages 28 mpg.
RELATED STORY | EV buyers lose $7,500 tax break; automakers offer workarounds
Based on current gas prices, it would take about six years of driving 12,000 miles annually for an EV to cost less than its gas-powered equivalent — though other expenses could affect that calculation.
Other expenses to consider
Most EVs include a “Level 1” charger, which can take days to fully recharge a vehicle. Many owners upgrade to a “Level 2” charger, which can recharge overnight, but costs several hundred dollars. Some homes may require electrical upgrades to support Level 2 charging.
Fast chargers, which can fully recharge an EV in about an hour, are available at limited public locations and can be more expensive than filling up with gas.
On the other hand, EVs don’t require oil changes and generally have lower maintenance costs.
In the end, the choice between electric and gas often comes down to personal preference.
