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Consumer Reports: Most EVs cost less to own than gas-powered vehicles

2644 Views 10 Replies 8 Participants Last post by  Lunkhead, 
CJamie
Consumer Reports released their EV Ownership Cost Report. In it they show how much you can save in EV ownership costs compared to their gas powered counterparts.



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WASHINGTON, D.C. — Owning a plug-in electric vehicle today will save consumers thousands of dollars compared to owning a gas-powered vehicle, according to a new analysis by Consumer Reports comparing electrics to CR’s top-rated vehicles, as well as the best-selling, most efficient, and best-performing gas-powered vehicles on the market.

The analysis found lifetime ownership costs for the most popular EVs on the market under $50,000 are typically $6,000 to $10,000 less than the best gas-powered vehicles in their class*. Tesla’s Model 3, the best selling EV on the market, delivered the biggest savings: at least $15,000 compared to both the BMW 330i (best selling) and Audi A4 (top rated).

The overall out-of-pocket-costs for many consumers who finance will be lower in their very first year of ownership, despite the fact that the upfront cost of electric vehicles remains higher today than their gas-powered counterparts.

Where the savings come from:
“There’s been so much progress over the last few years that many mass market electric vehicles will now save consumers money right off the lot,” says senior policy analyst Chris Harto, who authored the new report. “Today’s mainstream electric vehicles have what many consumers are looking for, including enough range for most people to do their daily driving without relying on public charging, while also delivering excellent acceleration and a quiet ride.”

Consumers in the market for a used vehicle, which make up 70% of car purchases, are poised to benefit significantly as they get access to these mainstream EVs over the coming years. Since previously-owned vehicles cost less upfront but have greater maintenance and repair costs, consumers in the market for a used vehicle are in line to pocket a significant portion of an EV’s overall lifetime savings potential.

“The auto industry has spent most of its ad money tugging at our emotions and promoting gas-powered vehicle performance, but failed to market EVs, all the money they will save, and the performance they deliver,” says David Friedman, Vice President of Advocacy at CR. “The future of cars can and will be electric if the entire industry starts making and marketing compelling EVs for everyone. And that’s a future consumers are getting a glimpse of today.”
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M
not mentioned...

EV State Tax
So, so I understand this correctly, this EV tax on a $44K 1st is about $1720 - in addition to the sales tax. Has anyone done the math in their states?

Reduced Alternative Fuel Vehicle (AFV) License Tax
The vehicle license tax for an AFV registered in Arizona is $4 for every $100 in assessed value. The minimum amount of the annual AFV license tax is $5. AFV assessed values are determined as follows:

AFVs registered prior to January 1, 2022: 1% of the manufacturer’s suggested retail price (MSRP)
AFVs initially registered between January 1, 2022 and December 31, 2022: 20% of the MSRP.
For each succeeding year, for the purpose of calculating the license tax, the value of the AFV is reduced by 15% from the value from the preceding year.
For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas. For more information, see the ADOT AFV website. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.
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M
mryflyguy said:
not mentioned...

EV State Tax
So, so I understand this correctly, this EV tax on a $44K 1st is about $1720 - in addition to the sales tax. Has anyone done the math in their states?

Reduced Alternative Fuel Vehicle (AFV) License Tax
The vehicle license tax for an AFV registered in Arizona is $4 for every $100 in assessed value. The minimum amount of the annual AFV license tax is $5. AFV assessed values are determined as follows:

AFVs registered prior to January 1, 2022: 1% of the manufacturer’s suggested retail price (MSRP)
AFVs initially registered between January 1, 2022 and December 31, 2022: 20% of the MSRP.
For each succeeding year, for the purpose of calculating the license tax, the value of the AFV is reduced by 15% from the value from the preceding year.
For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas. For more information, see the ADOT AFV website. The reduced alternative fuel vehicle license tax does not apply to any vehicle purchased on or after December 31, 2022.
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Currently in Georgia it is not a tax but rather an annual licensing fee. The fee is $213.88 for the year starting on or after July 1, 2020 for non commercial AFV. Commercial fee is a little higher.
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ID.4
In Ohio, the EV fee is also in the form of an additional $200 a year on top of regular license plate fees. That is in additional to a 7.8% sales tax in my County at time of purchase. I should also mention that Ohio is behind the times and offers $0 State tax incentive when the vehicle is purchased. If they could find a way to reduce the Federal tax incentive, they probably would. The folks in NJ definitely have the best deal in the country when they purchase an EV with a State tax incentive of $5,000 and no sales tax. WOW.
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ErickF
In Washington State, we have sales tax exemption up to $25k of the price of a new or used EV. On the backend, we have a total of $225 in annual car tab fees for hybrid and electric vehicles.

The voters approved an initiative to reduce the total to $105 (blanket car tab fees of $30 and $75 for a fund to build charging stations), but our "green" governor and attorney general are burying it in the courts and COVID.
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Dave Mc
Here's a recent 5 year TCO calculation comparing the Tiguan with the ID.4. Interesting that he makes the point of the base ID.4 being similar to a higher-equipped Tig, thus the TCO being even more favorable for the ID.4.
Volkswagen ID.4 vs. Volkswagen Tiguan — 5 Year Cost of Ownership (cleantechnica.com)
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TT97
Dave Mc said:
Here's a recent 5 year TCO calculation comparing the Tiguan with the ID.4. Interesting that he makes the point of the base ID.4 being similar to a higher-equipped Tig, thus the TCO being even more favorable for the ID.4.
Volkswagen ID.4 vs. Volkswagen Tiguan — 5 Year Cost of Ownership (cleantechnica.com)
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While I agree that TCO for EVs are lower than comparably equipped ICE vehicle, there are a lot of flaws & errors in their TCO calculation. Taking a look at the assumptions, I could not figure out how they came up with the interest costs (or why the $43k Tiguan had a higher interest cost than the $46k Tiguan) or why the different Tiguan versions have significantly different maintenance costs. Also, in their TCO, they did not take into account any residual value of the vehicles.
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Dave Mc
TT97 said:
While I agree that TCO for EVs are lower than comparably equipped ICE vehicle, there are a lot of flaws & errors in their TCO calculation. Taking a look at the assumptions, I could not figure out how they came up with the interest costs (or why the $43k Tiguan had a higher interest cost than the $46k Tiguan) or why the different Tiguan versions have significantly different maintenance costs. Also, in their TCO, they did not take into account any residual value of the vehicles.
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Huh, I didn't catch the interest costs difference, not sure what's going on there. I'm guessing he put the numbers in the wrong columns, but I can't recreate his numbers using the tools he referenced, so I just don't know.

The author specifically states he left out the residual value as there are so many unknowns with EV residuals - "While it can be one of the biggest differences in cost, I did not include estimates for resale values here. There are strong arguments to make going in either direction on this matter, and any estimate I make is sure to have people freaking out, so I’m leaving this to you".

And the maintenance - "Another matter is maintenance. We don’t yet have a solid estimate of what ID.4 maintenance costs will be. I put in my estimate. For the Tiguan models, I used figures from Edmunds." Did you read the article or just skip to the calculations? The answers to your questions were there (except for the interest costs).

The bottom line of the article is lower TCO for EVs (possibly excluding residual), especially for a similarly-equipped vehicle.
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TT97
Dave Mc said:
Huh, I didn't catch the interest costs difference, not sure what's going on there. I'm guessing he put the numbers in the wrong columns, but I can't recreate his numbers using the tools he referenced, so I just don't know.

The author specifically states he left out the residual value as there are so many unknowns with EV residuals - "While it can be one of the biggest differences in cost, I did not include estimates for resale values here. There are strong arguments to make going in either direction on this matter, and any estimate I make is sure to have people freaking out, so I’m leaving this to you".

And the maintenance - "Another matter is maintenance. We don’t yet have a solid estimate of what ID.4 maintenance costs will be. I put in my estimate. For the Tiguan models, I used figures from Edmunds." Did you read the article or just skip to the calculations? The answers to your questions were there (except for the interest costs).

The bottom line of the article is lower TCO for EVs (possibly excluding residual), especially for a similarly-equipped vehicle.
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Thanks. I missed the comment on residuals and agree that is a large unknown (personally, I would have just used the same residual percentage for all models but not using one makes your TCO bloated). I was aware of the maintenance comment and I should have specified my issue is more with Edmunds - the R-Line Black is just styling changes, the maintenance should be the same as the non R-Line Black.

I was probably over-critical and have corresponded with Zachary in the past and find his articles interesting. My issue is the google spreadsheet provided. As I was taught is school "show your work." A pet peeve of mine is when people have spreadsheets yet have the figures hard coded instead of the formula (I have a bigger issue when a vendor provides me their analysis with figures hard coded but same applies here).

I do agree on lower TCO for EVs and can verify by personal past experience (Model 3 vs MB C300).
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Dave Mc
TT97 said:
Thanks. I missed the comment on residuals and agree that is a large unknown (personally, I would have just used the same residual percentage for all models but not using one makes your TCO bloated). I was aware of the maintenance comment and I should have specified my issue is more with Edmunds - the R-Line Black is just styling changes, the maintenance should be the same as the non R-Line Black.

I was probably over-critical and have corresponded with Zachary in the past and find his articles interesting. My issue is the google spreadsheet provided. As I was taught is school "show your work." A pet peeve of mine is when people have spreadsheets yet have the figures hard coded instead of the formula (I have a bigger issue when a vendor provides me their analysis with figures hard coded but same applies here).
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Agree on the Google Sheet - he states $3k down with 3% interest, but the numbers don't work out for a 5-year payoff. It would be nice to see the calculations behind the figures, if nothing else that to start another conversation. :)
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Lunkhead
Dave Mc said:
Agree on the Google Sheet - he states $3k down with 3% interest, but the numbers don't work out for a 5-year payoff. It would be nice to see the calculations behind the figures, if nothing else that to start another conversation. :)
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Yes
Depends on how you do the math. Right now resales very low so long payback . But don’t worry they have high gas prices planned and holding back as economy weak . They will use high gas prices to push EV . Lordstown Pickup EV May go broke just like FISKER
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