How Much Can You Save? The Real Cost of Owning an Electric Car in California - NEW BOX OFFICE TO DAY

Californians love their electric cars .

Over 20 percent of the vehicles registered in California last year were completely battery-operated electric models, as reported by Experian, whereas only about 9 percent achieved this status nationwide. Currently, less than 1.3 percent of automobiles in the U.S. are entirely electric; however, more than a third of these electric vehicles can be found in California.

The government of California also has a fondness for electric vehicles.

"There are numerous advantages to reducing carbon emissions from transportation that are crystal clear to the State of California," stated Scott Moura, a professor of civil and environmental engineering at UC Berkeley and the faculty director of the California Program for Advanced Transportation Technology.

Reducing the expenses associated with electric vehicle ownership aids in achieving the state’s objectives of decreasing greenhouse gas emissions and enhancing air quality. This is why multiple state and local initiatives offer advantages to electric vehicle owners.

Electric cars may not be suitable for everybody. Their high initial cost often makes them unaffordable for many individuals. Additionally, without access to private charging facilities at your residence, relying on public chargers could negate much of the advantages offered by electric vehicles.

• Got money questions? Here’s how you can submit your questions to our California-based budgeting advice columnist.

Keith Barry, who covers automotive news for Consumer Reports, noted that lifestyle factors also come into play. "Range anxiety," which refers to the worry about depleting your battery charge before reaching your destination, can indeed be a valid issue—particularly when access to chargers is scarce. According to Barry, electric vehicles might not suit everyone; this would depend largely on whether you sometimes find yourself needing to travel long distances, like driving 500 miles across deserts.

However, for individuals who have a regular daily drive, the ability to recharge at home, and perhaps keep a gasoline or hybrid vehicle available for extended journeys, an electric vehicle could be quite suitable.

Battery-operated cars, which release no exhaust fumes, clearly have less environmental impact compared to those driven by gasoline-fueled engines, irrespective of the power source needed for recharge. according to the EPA .

However, are they more beneficial for your budget?

The answer, as with many of life’s most vexing questions, is: It depends. The price of the car and the maintenance and mileage will all play major roles in your answer.

A CNET analysis Based on national averages for mileage, electricity, and gas costs, it was determined that charging an electric vehicle (EV) typically amounts to roughly half the expense of refueling a gasoline-powered car. However, since both gas and electricity tend to be pricier in California, this alters the financial comparison. This causes the cost analysis to yield different outcomes when applied locally.

Below is a detailed analysis of the possible expenses and savings associated with purchasing, maintaining, and powering an electric vehicle in California.

Expense of an EV Compared to a Gas-Powered Car

Buying

When looking for a new electric vehicle, be prepared for a hefty price tag. According to Kelley Blue Book, which tracks vehicle values, the average cost of a newly purchased electric car in the U.S. reached about $59,200 as of March 2025.

However, electric cars tend to be more prevalent in the premium segment, which means this average will likely be higher than usual. According to the website, total costs may vary significantly, ranging anywhere from around $29,280 for a brand-new Nissan Leaf up to well above $100,000 for a Mercedes-Benz EQS SUV.

The typical price for a new gasoline-driven vehicle during that timeframe was around $47,500.

On the used market, Kelley Blue Book says the average cost for a secondhand electric car in March 2025 was a little over $36,900.

The average used car (across all models, so including gas, electric and hybrid) was listed for $25,200 at the start of April, Kelley Blue Book reported.

As electric vehicles become more common, their prices should keep dropping, according to Jason Zimbler, who leads efforts for light-duty cars at the clean transportation nonprofit CalStart.

The pace of battery manufacturing expansion has surged significantly," he stated. "As more units are produced, the costs of batteries continue to drop steadily. Since these power cells represent the highest expense when building an electric vehicle, reducing their price leads us toward a future with more affordable EVs.

The federal government along with various states provides financial benefits aimed at reducing the cost of purchasing electric cars. According to the Inflation Reduction Act, qualifying individuals can receive a tax break of up to $7,500 for buying numerous new electric and plug-in hybrid models. Additionally, used electric vehicles might qualify for a tax credit of around $4,000.

Submitting a gasoline-driven vehicle that fails a smog test could earn you as much as $2,000 in state incentives through the California Bureau of Auto Repair’s consumer assistance program for vehicle retirement.

Your municipality might provide extra incentives; be sure to check them out. driveclean.ca.gov and enter your ZIP code to do an incentive search for your area.

If you’re interested in taking advantage of these perks, you might want to jump on your chance: House Speaker Mike Johnson recently said Republicans are likely to ax the Inflation Reduction Act’s clean vehicle incentives to pay for other tax cuts.

Leasing

Similar to conventional gasoline vehicles, monthly lease payments tend to be significantly lower than installment payments on a car loan. According to Experian data from 2024, the typical monthly lease payment for a non-luxury electric vehicle averaged around $486, whereas the average loan payment came to about $817 — making leases approximately $331 cheaper each month. (Being a personal finance journalist, I must emphasize that purchasing a vehicle typically becomes more cost-effective over time compared to leasing if you maintain ownership of the car indefinitely.)

Owning an electric vehicle versus owning a gasoline-powered car

Maintenance

Maintenance expenses represent a significant saving opportunity for electric vehicle owners. Since these cars do not require oil changes, and because they lack an internal combustion engine, there are fewer components to service and replace over time.

The suspension endures for a longer duration in electric vehicles. Additionally, electric vehicles operate their brakes distinctively compared to gasoline-powered cars: regenerative braking systems transform the act of braking into electrical energy rather than dissipating it as heat through brake pads. Consequently, this reduces the frequency at which brake pads require replacement.

I've had an electric vehicle since late 2020," Moura stated, "and I've only brought it in for service once.

The added weight of the battery in an electric vehicle can make it heavier compared to a similar gasoline-powered model, which might require tires to be changed somewhat more frequently.

The insurance for an electric vehicle may be as much as 20% higher compared to a gasoline-powered car, or approximately $44 extra each month, as stated by the source. National Association of Insurance Commissioners However, those prices are decreasing as more repair shops acquire the capability to service electric vehicles.

Tolls and HOV lanes

If you reside in the Bay Area, driving an electric vehicle (EV) may help you save on toll costs. Vehicles that meet the clean air criteria qualify for this benefit. FasTrak CAV toll tag This offers drivers reduced rates during carpool hours. For over twenty years, owners of qualifying electric and hybrid cars in California have benefited from these perks. driving alone in the HOV lane —but that program is scheduled to end in September unless Congress extends it.

• READ MORE: Electric vehicles might be excluded from California’s carpool lanes — adding yet another possible setback for Tesla and Musk.

Registration

Registering your electric vehicle will likely be more expensive than registering your previous one. Since zero-emission EV owners do not consume gasoline, they miss out on the taxes embedded in fuel prices which typically fund road maintenance. To compensate for this gap, the state imposes an additional road improvement fee of $118 when renewing registrations annually for vehicles from model year 2020 onwards.

Charging either at your residence or in communal spaces

The quickest and least expensive method for charging an electric vehicle is undoubtedly through the use of a home charger. If your newly purchased residence did not come equipped with one, then you will need to acquire the necessary equipment and employ an electrician for installation.

"Don't purchase an electric vehicle until you understand the expenses associated with installing the charging station," advised Barry. Despite driving an electric car himself, he shares a warning based on personal experience: His 200-year-old residence lacks an attached garage, forcing him to spend thousands of dollars excavating trenches for the installation of his charger. However, in more modern homes, these costs would typically be significantly lower.

Anticipate that the typical expense for setting up your charger will range from approximately $200 to $2,000 altogether, based on whether you opt for a Level 1 or Level 2 charger along with the price of labor, according to Zimbler.

Setting up an approved charger might qualify you for up to $1,000 in federal tax benefits. Additionally, check for local incentives because certain utility providers, such as Pacific Gas and Electric Co., provide rebates aimed at reducing the expenses associated with installing charging gear.

The cost for using a public charger typically amounts to about 35 cents per kilowatt-hour in California. according to AAA Zimbler mentioned that many drivers typically wait between 15 to 20 minutes to accumulate sufficient charge for reaching either their final destination or the subsequent charging station.

Powering an Electric Vehicle versus a Car with Gasoline

A major query for potential electric vehicle (EV) buyers in California is: What amount will be saved on fuel costs?

I compiled the figures and analyzed them alongside the Chronicle’s data specialists, and this is what we found: Running an electric vehicle in California is roughly 40% cheaper compared to powering a conventional car with gasoline. According to our computations, the price equivalence of a "gallon of gas" for an EV stands around $2.90.

To make this chart, our analysis had to make a lot of assumptions about annual mileage and fuel efficiency. Here’s how I arrived at these numbers, and how you can calculate them to figure out what your cost comparison would be:

Miles traveled per month: For both those driving electric vehicles and those using gasoline-powered ones, I utilized the The U.S. Department of Transportation’s typical yearly driving distance for people in California (14,435) and then divide that by 12.

Fuel cost per gallon: The AAA provides the latest state-wide average figures, from which I obtained this particular figure. Various locations impose differing charges. GasBuddy To discover the pricing near you.

Average miles per gallon: I referred to the U.S. Department of Energy’s general average for gasoline vehicle efficiency. To find your specific car's typical MPG, search using the manufacturer and model details. Calculate the monthly expenditure on gas by multiplying the required gallons each month with the price per gallon. Finally, determine the cost per mile driven by dividing this amount by the total miles covered in a month.

Average miles per kWh: This represents the electric vehicle equivalent of "miles per gallon," indicating how far you can travel using one kilowatt-hour from a fully charged battery. For this calculation, I utilized an average figure applicable to all-electric vehicles in 2023—the latest year with accessible data for such analysis. Many electric cars specify energy consumption as kWh consumed over every 100 miles traveled. You should look up the manufacturer and specific model of any electric car to find more details. fueleconomy.gov .

Average monthly kilowatt-hours consumed for charging: This can differ based on your vehicle model, battery capacity, and monthly mileage. To determine this figure, I calculated the typical monthly driving distance and then divided it by the efficiency rating of electric cars.

Typical price of power in California: For this graph, I calculated the average February 2025 kWh price throughout California based on data from the U.S. Energy Information Administration. Keep in mind that these figures can differ according to your service provider, specific plan, and usage of off-peak charging times to minimize costs when powering your vehicle.

For example: If you’re on PG&E’s residential base plan In San Francisco County, your total average comes out to be approximately 38 cents per kilowatt-hour (kWh). If you were on PG&E’s electric-vehicle-oriented EV2-A plan , you would pay as little as 31 cents per kWh to charge your car between midnight and 3 p.m., or as much as 62 cents per kWh to charge it from 4 to 9 p.m. in the summer. Jennifer Robison, a PG&E spokesperson, said EV2A customers could expect to pay an average of $3.20 for the equivalent of a gallon of gas.

Cost per mile: To find out your expense per mile for gasoline, divide your monthly spending on fuel by the total distance you drive each month. To calculate costs for an electric vehicle, divide the average price per kilowatt-hour of electricity by the car’s energy consumption rate measured in kilometers traveled per kilowatt-hour.