Will Buying an Electric Car Save You Money?

While gas prices have dropped in the United States, the average per gallon still sits at $3.29. Many are calling for alternative sources of energy. It has been said this is more sustainable and better for our environment, but will it save you any cash? Electric cars have become more popular in the past few years. They run on a renewable electric charge and offer extreme efficiency when compared to gas powered cars.

Taking a Look

Assuming the average American drives 13,500 miles per year, we can see whether or not this is a viable money saving option. Looking at two standard electric cars and two standard gas cars we see:

• · Mitsubishi I-$27,990, 126 MPG hwy equivalent, 96 mile range, 107 equivalent gallons/year
• · Nissan Leaf-$33,600, 106 MPG hwy equivalent, 102 mile range, 127 equivalent gallons/year
• · Toyota Corolla S-$18,600, 34 MPG hwy, 397 gallons/year
• · Honda Accord Sedan-$22,980, 32 MPG hwy, 422 gallons/year

This data presents an interesting set of numbers. The government is currently offering a $7,500 rebate for purchasing either of these two electric cars, which would significantly drive the price down. The Mitsubishi will have a yearly cost right around $350 and the Leaf right around $415, while the Corolla and the Accord will be $1300 and $1390, respectively.

Which is Better for You?

This question can only be answered by personal preference. How far do you travel at a time? How much does your environmental impact matter to you? Can you really trust electric cars? From a financial standpoint it is hard to argue which car will be cheaper in the long run. Assuming the cars run with similar maintenance and repairs, it would only take a few years for the electric cars to be a better financial decision based on the numbers presented earlier. With the rebate and roughly $1000 in yearly energy savings the difference in base price would be made up quite quickly. The problem with making this decision solely based on the finances is the number of other variables included. Electric cars run on expensive batteries that haven’t proven completely trustworthy and they have only a short range they can travel on one charge. You have to also take into account that they are better for the environment. After weighing all of these advantages and disadvantages, you should be able to make an informed decision on your next automobile purchase.