Why Electric Cars Can be Easier to Budget

Electric vehicles have more predictable costs than gas cars for two main reasons: 

1. Electric fuel costs are generally cheaper and definitely more stable. Where gas prices vary over time and by region, even station to station, prices for electricity are less volatile. Over the past 10 years, gas prices have fluctuated from below $1.50 a gallon to over $5 a gallon. Meanwhile, there is a slow but steady increase in electric prices. The chart below, using data from the Bureau of Labor Statistics, compares the price trends in gasoline (purple) with electricity (the thin turquoise line near the horizontal axis).

Today, the average EV driver pays about $1.22 to go the same distance a traditional car can travel on one gallon of gas. If you’re on a tight budget, anticipating the cost of your electric bill is much easier than guessing how much you’ll need to set aside for gas, especially over a few year horizon. 

2. Electric cars also have lower maintenance costs - and less scheduled maintenance - than ICE cars. There are fewer fluids to replace, fewer moving parts that can break down, and regenerative braking helps your EV’s brake system last longer, too. The one exception to this can be the need to replace tires more frequently on EVs, but only if you’re really driving pedal-to-the-metal. 

Who could benefit from the predictable costs of an electric car? Almost everyone! More than 90% of low-income, vehicle-owning households in the U.S. would see a reduction in transportation costs by switching to EVs. 

But, there are a few demographics, often working with fixed budgets, that could particularly benefit from EV ownership:

Seniors

About 11% of EV drivers are over age 65. Retirees who no longer have a daily commute may not need or want a loud, clunky gas-guzzler, or the associated worry about gas prices. Almost all EVs have sufficient range for getting around town and their lower maintenance and energy costs mean seniors on a fixed-income can stay within their budget while still enjoying the freedom of owning a car. 

Technological advances make it even easier for seniors to get around. Electric cars are quiet, which is helpful for those with hearing or sensory issues. New cars are equipped with large screens and back-up cameras for added safety, along with autonomous driving and assisted parking features. EVs often have a low center of gravity, making them easy to handle and safer in a crash. With more seniors choosing to live in retirement communities, an electric car could be the thing that helps them feel active, comfortable, and connected to their lives inside and out.

Students

No one wants to worry about car maintenance while working on their degree. Used electric cars are a particularly great option for students since they usually have a pretty fixed commute and often live close to school. A student with this setup can easily find an inexpensive and reliable EV with enough range to get to and from class without worrying about constant tune-ups and ever fluctuating gas prices. Many colleges and universities are investing in on-campus charging stations so a short-range EV can still make the trip. Plus, the largest group of EV buyers are under 25, and most students are too. 

If your student is not yet in college, a short range EV may also be a great option to help them get around town, without worrying that they will go too far afield. Plus, with an after-school job, your high school kid may be able to help cover the lower costs of an electric car. 

People with Disabilities

Sometimes drivers need accommodations and modern EVs have a plethora of options to help people stay mobile in their own cars. Charging an EV is easier than filling up a gas tank and does not require the driver to stand holding the pump. For people with mobility issues or conditions like muscular dystrophy, the reduced vibrations and smooth ride of an electric car can reduce the likelihood of painful triggers. Electric cars are also much quieter than gas cars, which can help people with sensory issues stay comfortable and maintain focus. EVs are safe, comfortable, and have a good amount of storage for mobility assistance devices. Together with lower costs and maintenance headaches, EVs can help drivers with disabilities.

Stay-at-Home Parents 

With childcare costs rising across the country, many families are opting to have a parent or caregiver stay home with young children. In fact, 1 in 5 parents in the U.S. focus solely on home and childcare. Even without a commute to work, these parents often need to get around town to doctors appointments, school and social events, grocery stores, and dozens of other places. An electric vehicle can help parents get where they need to be. Stay-at-home parents tend to have more limited range needs and they may not need to use the car every day. An electric car can keep the gas bill down and is reliable enough to not interrupt a busy schedule. They can even serve as back up for a gas car in two-car households. Plus, they’re quiet, so they won’t wake up the kids during naptime. That might be worth more than the financial savings!

Freelancers and Self-employed

The nature of freelancing and self-employment means your income can vary from month to month. Low, predictable expenses are key to planning for the future and turning a profit. Especially factoring in possible incentives, a reliable electric car can keep costs down. They may even benefit your taxes.

Drawbacks and Considerations

Despite the lifetime cost savings of an electric car, the initial purchase price can be higher than a gas car, and that may put EVs out of reach for some fixed budget households. There are programs designed to help low-income people afford the switch to EVs, but more are needed to make access to electric vehicles equitable. Also, the cost savings and convenience of an electric car hinges on the ability to charge at home. There are plenty of places to charge your electric car, and more are opening every day, but depending on where you live, it may eat up your savings to rely on public chargers. Even so, it’s worth checking the math. Used EV tax credits can really help offset the up-front costs. Electric car owners who can charge at home save roughly $1000 a year on fuel. Over the lifetime of the car drivers can save $6,000 - $10,000. If you’re on a tight budget or a fixed income, an EV could be the perfect car for your needs.