Gasoline vs. Electric Cars: Which is More Cost-Effective Over 5 Years?

When choosing a car, understanding the total costs of gasoline versus electric cars is crucial. Here is a comparison of the costs for both types of vehicles over a five-year ownership period based on certain assumptions:

Assumptions

Gasoline price: $3.5 per gallon

Average miles per gallon: 25 miles

Annual mileage: 12000 miles

Electricity cost: $0.13 per kWh

Electric car efficiency: 3.5 miles per kWh

Cost of gasoline car: $30000

Cost of electric car: $40000

Annual maintenance cost for gasoline car: $1000

Annual maintenance cost for electric car: $500

Years of ownership: 5 years

Cost Calculation

Gasoline Car

Annual fuel cost: \((12000 ÷ 25) × 3.5 = $1680 \)

5-year fuel cost: \(1680 × 5 = $8400 \)

5-year maintenance cost: \(1000 × 5 = $5000 \)

Total cost: \(30000 + 8400 + 5000 = $43400 \)

Electric Car

Annual energy cost: \((12000 ÷ 3.5) × 0.13 = $445.71 \)

5-year energy cost: \(445.71 × 5 = $2228.57 \)

5-year maintenance cost: \(500 × 5 = $2500 \)

Total cost: \(40000 + 2228.57 + 2500 = $44728.57 \)

Results

Total cost of gasoline car: $43400

Total cost of electric car: $44728.57

Over a five-year ownership period, the total cost of a gasoline car is slightly lower than that of an electric car. However, it's important to note that electric cars have advantages in terms of lower maintenance and fuel costs. Additionally, potential government incentives and tax benefits for electric vehicles should be considered. The environmental benefits and the potential for future cost reductions in electric car technology are also important factors.

In summary, the cost-effectiveness of choosing a gasoline or electric car depends on personal driving habits, local energy prices, and environmental considerations.