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Electric vs Gas Cars - Which is Better for Saving Money?

January 18, 2022

Electric vs Gas Cars - Which is Better for Saving Money?

As more cities are pushing for eco-friendly alternatives to gas-powered cars, a popular debate among car buyers is whether they should invest in an electric vehicle (EV) or stick to a gas-powered car. To help you make a decision, we've compiled a factual comparison between the two options on cost efficiency.

Purchase Price

When it comes to purchase price, gas-powered cars generally have a lower price compared to electric vehicles. However, the difference in price has been decreasing over the years, and some electric cars can now be found at the same price point as some gas-powered cars. Additionally, electric cars often have access to federal and state tax incentives and rebates, which can help reduce the overall cost.

Fuel and Maintenance Cost

This is where electric cars score big time. Unlike gas-powered cars, electric cars do not require gasoline to run. Instead, they rely on rechargeable batteries, which can be charged at home or at charging stations. The cost of electricity is generally lower than the cost of gasoline, and electric cars typically have lower maintenance costs since they have fewer moving parts. According to energy.gov, the average cost to operate an electric vehicle is about $485 per year, while the cost to operate a gas-powered car is about $1,117 per year.

Resale Value

Resale value is an important factor to consider when buying a car. In general, electric cars tend to have a higher resale value than gas-powered cars, especially those that are well-maintained. According to data from Kelley Blue Book, the Tesla Model 3 has a 5-year resale value of 69.3%, while the Toyota Camry has a 5-year resale value of 39.5%.

Environmental Impact

Lastly, both options have different environmental impacts. Gas-powered cars emit harmful gases that contribute to climate change, while electric cars produce zero emissions. However, electric cars rely on electricity, which is often produced using non-renewable sources. To truly make electric cars eco-friendly, it's important to charge them with electricity from renewable energy sources.

Conclusion

Based on the comparison above, it's clear that electric cars provide better cost savings compared to gas-powered cars, in addition to their eco-friendly benefits. However, it's important to consider your lifestyle and driving habits when making a final decision. If you travel long distances frequently, an electric vehicle might not be the best choice for you due to limited charging infrastructure availability.

At Flare Compare, we are committed to helping you make informed decisions. Contact us to learn more about the car-buying process and to compare different car models.

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