Gas vs EV: Which Car Will Cost You Less Over 10 Years?

Picture this: You've spent your Saturday driving between a Tesla showroom and a Honda dealership, calculator in hand, comparing a sleek Model 3 at $37,000 with a reliable Accord at $28,000. Both salespeople mentioned "total cost of ownership," but all you can focus on is that $9,000 price difference staring you in the face.

Here's the thing: that upfront difference might be the least important number in your car-buying decision.

After crunching the numbers on real-world ownership costs—from electricity bills and oil changes to insurance premiums and battery replacements—the financial winner might surprise you. Electric vehicles generally have a higher purchase price, but EVs beat out gasoline-powered counterparts on total lifetime costs in certain cases.

Let's break down what it actually costs to own each type of vehicle over a decade, because the devil (and the savings) are definitely in the details.

The Purchase Price Reality Check

The sticker shock is real when you're shopping for an electric vehicle. The average EV currently costs about $10,000 more than a comparable gas-powered car. But before you write off electric vehicles entirely, consider this: that gap is closing fast, and the government is literally paying you to make the switch.

The federal incentives can slash up to $7,500 off your EV purchase, and many states offer on additional rebates. California offers up to $7,000 more in state rebates, while Colorado adds another $5,000. Suddenly, that Tesla doesn't look so expensive compared to the Honda.

But here's where it gets interesting: the real savings don't come from the purchase price at all.

The Daily Operating Costs Battle

Every time you drive, you're burning money—either in gasoline or electricity. The question is: which burns through your wallet faster?

The electricity advantage is massive—especially in California. With gas averaging $4.76 per gallon across the state in 2024 and electricity running around 32¢ per kWh for residential customers, the fuel cost difference is dramatic.

Let's put real California numbers to it. If you drive 12,000 miles per year:

• Gas car (30 mpg): 400 gallons × $4.76 = $1,904 annually
• Electric vehicle: 12,000 miles ÷ 3.5 miles per kWh × $0.32 per kWh = $1,097 annually

That's over $800 in annual fuel savings—or $8,070 over ten years.

National comparison: Nationally, where gas averages $3.50/gallon and electricity around $0.17/kWh, EVs save about $820 annually. California's high gas prices make the EV advantage even more pronounced, despite the state's higher electricity costs.

But here's the catch: those savings assume you're charging at home most of the time. Public charging networks can cost 3-4 times more than home charging, potentially cutting your fuel savings in half if you're a road trip warrior or apartment dweller without charging access.

Maintenance: Where EVs Shine (Mostly)

Remember the last time you got an oil change? The service advisor probably handed you a list of "recommended" services: air filter, cabin filter, transmission fluid, spark plugs, timing belt. The bill for a major service can easily hit $800-1,200.

Compared to internal combustion engines (ICE), electric vehicles have far fewer moving parts, which translates to dramatically lower maintenance costs.

What gas cars need that EVs don't:

• Oil changes every 5,000-7,500 miles ($60-100 each)
• Transmission service ($200-400 every 30,000-60,000 miles)
• Spark plug replacement ($300-500 every 30,000-100,000 miles)
• Timing belt replacement ($800-1,500 every 60,000-100,000 miles)
• Air filter replacements ($40-$80 annually)
• Fuel system cleaning ($150-$300 periodically)

What EVs still need:

• Tire rotation and replacement (actually more frequently due to instant torque)
• Brake service (less frequently thanks to regenerative braking)
• Cabin air filter replacement
• Coolant system service (for battery thermal management)

The maintenance savings typically run $500-800 annually, adding up to $5,000-8,000 over a decade.

There's one caveat: when EVs do need repairs, they often require specialized technicians and parts that can be more expensive. A fender-bender repair on a Tesla might cost 20-30 percent more than on a Honda, partly due to the specialized aluminum construction and fewer qualified repair shops.

The Big Unknown: Battery Replacement

The biggest fear factor keeping people in gas cars. "What happens when the battery dies and I need to spend $15,000 on a replacement?"

In reality, replacing an electric vehicle battery will soon cost less than fixing the engine of a gas car, according to recent studies. Battery costs have plummeted 85 percent since 2010 and continue dropping.

Current battery replacement costs:

• Tesla Model 3: $7,000-$12,000
• Chevy Bolt: $5,000-$8,000
• BMW i3: $6,000-$10,000

At the same time, most EV batteries are lasting much longer than expected. Tesla reports that their batteries retain 90 percent capacity after 200,000 miles. Many EV batteries come with 8-year/100,000-mile warranties, and real-world data suggests most will last 15-20 years.

Meanwhile, major engine repairs on gas cars—transmission rebuilds, engine replacements, or hybrid battery replacements—can easily cost $4,000-$8,000.

Insurance and Resale: The Wild Cards

Insurance for electric vehicles typically runs 10-20 percent higher than comparable gas cars, mostly due to higher repair costs and the fact that many EVs are luxury vehicles. But this gap is narrowing as more mainstream EVs hit the market and repair networks expand.

Resale value is trickier to predict. Early EVs like the Nissan Leaf depreciated rapidly due to limited range and battery degradation concerns. But newer EVs with better batteries are holding their value much better, and some Teslas are actually appreciating in value.

We know that EV technology is evolving rapidly, but it’s not apparent just how quickly it will advance. In other words, if you hold on to your 2024 EV, will it feel like a flip phone by 2034?

The 10-Year Total Cost Showdown

Let's put it all together with a real-world comparison:

2024 Tesla Model 3 vs 2024 Honda Accord Hybrid

Tesla Model 3 (after $7,500 federal credit):

• Purchase price: $32,500
• Fuel costs (10 years): $4,460
• Maintenance costs (10 years): $3,000
• Insurance premium (10 years): $16,500
• Total: $56,460

Honda Accord:

• Purchase price: $27,000
• Fuel costs (10 years): $10,800
• Maintenance costs (10 years): $8,000
• Insurance premium (10 years): $14,000
• Total: $59,800

The Tesla saves $3,340 over 10 years—but the savings differential could increase, considering the potential for additional state incentives or the likelihood that gas prices will continue rising faster than electricity rates.

When EVs Win Big (and When They Don't)

EVs are financial winners when you:

• Drive more than 10,000 miles annually
• Can charge at home most of the time
• Live in a state with EV incentives
• Plan to keep the car for more than 5 years
• Have access to low-cost electricity

Gas cars still make sense when you:

• Drive less than 8,000 miles annually
• Frequently take long road trips to areas with sparse charging facilities
• Live in an apartment without charging access
• Need a truck for heavy towing
• Want the lowest possible upfront cost

Pro-tip: Check out the Department of Energy's Vehicle Cost Calculator and don't forget to research available federal, state, and local EV incentives in your area.

The Bottom Line

The math is increasingly favoring electric vehicles, especially if you're a typical suburban driver who can charge at home. The combination of lower fuel costs, reduced maintenance, and improving battery longevity means EVs often cost less to own despite higher purchase prices.

But remember: the "winner" depends heavily on your specific situation and which EV you choose. In California, a Tesla might save a typical commuter $12,000 over 10 years thanks to high gas prices and generous state incentives, while a BMW i4 might save only $5,000 due to its higher purchase price. In states with lower gas prices and no state incentives, the savings margin narrows considerably—though EVs still typically come out ahead for drivers with above-average mileage.

Within the EV space, your preferences matter too:

• Tesla for cutting-edge tech, efficiency, and value
• BMW or Genesis for traditional luxury and refinement
• Hyundai or Ford for maximum value with solid capability
• Lucid for ultimate performance and luxury (if budget allows)

The good news? You don't have to guess. Use online calculators from sources like the Department of Energy's Vehicle Cost Calculator to input your specific driving patterns, local energy costs, and available incentives. Run the numbers for your situation, because when it comes to EV vs gas—and which EV to choose—one size definitely doesn't fit all.

The auto industry is placing massive bets on electric vehicles, and the math is starting to back up that confidence. The question isn't whether EVs will eventually win on cost—it's whether they already have for your specific needs.

Keen to run the numbers on auto insurance for your new ride? Give Wawanesa a call at 1-800-640-2920 and speak with one of our helpful agents.