You've heard the marketing: EVs are cheaper to own. But is that true when you look at the full picture—purchase price, insurance, depreciation, tires, and tax? The answer is more nuanced than a simple yes or no. A detailed 2026 analysis by CNET comparing a Chevrolet Equinox EV to a gas-powered Equinox found that over 15 years, the EV saves you nearly $15,000 ($57,420 vs $72,345). However, these savings depend entirely on how you charge, where you live, and how long you keep the car. This guide breaks down every single cost category so you can calculate your own numbers.
1. Purchase Price & Incentives
This is the one category where gas cars still have an edge. The average price of a new EV in 2026 hovers between £30,000 and £35,000 in the UK (approx. $38,000-$44,000 USD), while a comparable petrol car is £22,000-£25,000. That's a premium of roughly $5,000-$10,000.
What closes the gap?
- Government incentives: In Spain, for example, the Plan MOVES offers up to €4,500 in subsidies for EV purchases. UK first-year road tax is just £10.
- Fleet discounts: For businesses, the Benefit-in-Kind (BiK) tax rate for EVs is just 3% in the UK, compared to 25%+ for gas cars, making leasing dramatically cheaper.
The Ayvens 2026 Car Cost Index confirms that leasing an EV is now cheaper than its petrol equivalent in 20 out of 30 European countries analyzed. A standout example: the BMW i4 has a lower total cost of ownership than the petrol BMW 3 Series in 66% of the surveyed markets.
2. Charging Costs: The Single Biggest Variable
Home Charging vs. Public Charging
The cost to "fuel" your EV can vary by a factor of 10 depending on where you plug in.
| Charging Type | Cost per kWh | Annual Cost (12,000 mi) |
|---|---|---|
| Home (off-peak) | 8p ($0.10) | ~$400 |
| Home (standard rate) | 15p ($0.19) | ~$700 |
| Public AC | 30p-50p ($0.38-$0.63) | $1,500+ |
| Public DC Fast | 80p ($1.00) | $3,000+ |
The math is simple: Relying on public fast charging can make an EV more expensive to run than a gas car, which averages about 19p per mile. Home charging, especially with an off-peak tariff, makes it vastly cheaper.
3. Maintenance & Repairs
EVs have dramatically fewer moving parts than internal combustion engine vehicles. No oil changes, no spark plugs, no timing belts, no exhaust systems. This translates to significant savings.
Kia EV4 fleet data shows annual Service, Maintenance, and Repair (SMR) costs of just 0.44p per mile—virtually negligible. However, there are two major caveats:
- Tire wear: EVs are heavier and accelerate harder, which means they burn through tires faster. An EV-specific tire can cost 30-50% more than a standard tire, and may need replacement every 3-4 years instead of 5-6. This can add $200-400 per year to the maintenance bill.
- Battery replacement: While rare and typically covered by an 8-year/100,000-mile warranty, an out-of-warranty battery replacement can cost $5,000-$15,000. This is the single biggest financial risk of long-term EV ownership.
Hybrids, by contrast, offer "the worst of both worlds," combining the maintenance needs of both gas and electric powertrains.
4. Insurance
Insurance is often the biggest surprise for new EV owners. In 2026, premiums remain significantly higher than for comparable gas vehicles. The average annual EV insurance premium in the UK is around £654 ($830), compared to £550-600 for a gas car. Premium models like the Tesla Model Y can exceed £1,000.
Why are EVs more expensive to insure?
- Higher vehicle value: EVs cost more to replace.
- Expensive components: The battery pack is costly to repair or replace.
- Complex repair procedures: Structural designs like "giga-casting" can turn a minor fender-bender into a major structural repair if the single-piece rear casting is damaged.
CNET's analysis confirms that EVs "ranked last in the insurance and depreciation categories" due to these higher costs.
Cheapest EVs to insure: Dacia Spring, Renault Twizy, Fiat 500e, and Volkswagen e-Up! generally attract the lowest premiums.
5. Depreciation
This is the category where the numbers get uncomfortable. Three-year EV depreciation currently averages 35-45%, compared to 30-35% for gas cars. Some non-Tesla models have seen values drop by 50% or more in three years.
Why the drop?
- Rapid technology improvement: Today's 300-mile EV feels outdated compared to next year's 400-mile model with faster charging. As Amelia Dalgaard, "Motorhead Mama," explains, older models "become undesirable more rapidly (very much like the old iPhone models)."
- Battery uncertainty: Buyers of used EVs worry about remaining battery life and replacement costs.
- Price wars: Manufacturers have slashed prices on new EVs, pulling down used values.
However, depreciation varies widely by brand. Tesla's Model 3 and Model Y, along with mainstream models from BYD and Volkswagen, hold their value much better than obscure or discontinued models.
6. Road Tax & Government Charges
The era of EV tax exemption is ending. In the UK, EVs registered after April 2025 now pay the standard £195 annual Vehicle Excise Duty, just like gas cars.
The "Expensive Car Supplement": For EVs with a list price over £50,000, there is an additional £425 charge for five years. This hits premium models like the Tesla Model Y, Audi Q8 E-Tron, and BMW iX.
In contrast, gas cars have first-year tax rates that vary by CO₂ emissions, ranging from £200 to over £1,000.
In China, the government has extended tax breaks for EVs, but they are slowly being phased out. In the US, the $7,500 federal tax credit still applies to many models, though stricter sourcing rules have reduced eligibility.
7. The 15-Year Cost Comparison
Source: CNET analysis based on 2026 models.
| Chevrolet Equinox | 15-Year Cost |
|---|---|
| Gasoline Equinox (purchase + fuel) | $72,345 |
| Chevy Equinox EV (purchase + charging) | $57,420 |
| Total EV Savings | $14,925 |
This model accounts for higher insurance and slightly lower resale value but assumes home charging is used for the majority of miles.
Real-World Scenarios
Expert Voices
"In general, you're going to be better off with an EV. The battery is going to be the biggest reason that EVs are more expensive upfront, but over the long term, the numbers show that an EV can save you almost $15,000." Antuan Goodwin, CNET
"If you think buying an EV is too expensive, it may be time to reconsider. These numbers show that, in the long run, an EV can save you almost $15,000." Amelia Dalgaard, Automotive Expert
"In 66% of surveyed countries, a high-end BEV like the BMW i4 is already cheaper to run than its closest petrol equivalent. Looking at the monthly lease rate alone doesn't tell the full story." Ayvens 2026 Car Cost Index
The Bottom Line
EV wins if: You have access to home charging, drive more than 10,000 miles per year, plan to keep the car for at least 5 years, and live in a region with favorable incentives and tax treatment.
Gas wins if: You lack home charging, take frequent long-distance road trips, live in a cold climate (which reduces EV range), or prefer to trade cars every 2-3 years, avoiding the steepest depreciation.
The financial landscape has shifted. EVs are no longer universally cheaper, but for the right owner in the right situation, they remain a powerful tool for saving money and reducing environmental impact.