72% of Americans Believe Electric Vehicles Are Too Costly: Are They Correct?

Electric vehicles may have a higher initial purchase price, but their lower operating costs can make them more affordable in the long run. Tax credits can help reduce the upfront expense, but it’s important to know which vehicles qualify. Since average costs may not reflect your individual situation, it’s essential to calculate your own costs and potential savings.

Electric vehicle (EV) sales have surged dramatically over the past five years, with a record 1.2 million Americans purchasing EVs last year, according to Kelley Blue Book. However, there remains significant confusion about the true cost of owning an electric vehicle.

This uncertainty is due in part to factors like auto insurance, maintenance, and fuel costs, which can vary widely depending on your location and driving habits.

Pew recently conducted a survey of nearly 9,000 people to gauge opinions on electric vehicles (EVs). The results showed that 72% of respondents believe EVs have a higher upfront cost, while 28% also think they are more expensive to fuel. There is some truth to these perceptions.

Many people choose electric vehicles (EVs) for their environmental benefits, but cost is also a key factor. While prices are gradually decreasing, EVs still tend to be more expensive than traditional gas-powered vehicles. According to the latest data from Kelley Blue Book, the average price of a new vehicle in July was $48,424, while EVs averaged $56,520.

However, some electric vehicles are eligible for tax credits of up to $7,500, which helps narrow the price gap. Not all EVs qualify for this credit, as the government aims to direct subsidies toward vehicles primarily made in the U.S. with materials largely sourced domestically.

When considering an EV, be sure to review the tax credit guidelines and use the Energy.gov tool to confirm if the model you’re interested in is eligible.