How Much Is An Electric Car? Pricing Factors & Energy Costs

Since the first electric cars became available to the general public over a decade ago, the number of consumers buying EVs has increased drastically. Electric vehicles, including hybrids and plug-ins, accounted for 10% of automobiles sold in 2022. As manufacturers continue to offer more mileage and faster charging options with zero emissions, the popularity of electric vehicles continues to rise.

To find the true cost of owning an electric vehicle, you'll need to consider several factors, including sticker price, maintenance and repairs, insurance, and the cost of charging your EV. If you're thinking about purchasing an electric vehicle or just want to learn more as you consider your options, understanding the costs involved in running an EV can help you make an informed decision.

How Much Does an Electric Car Cost?

Electric cars range in price depending on the size of the vehicle's battery, the motor's abilities to power the vehicle and increase range, the vehicle's charging capabilities, and any additions like infotainment or interior and exterior features. Here's a look at some of the main factors that affect the overall costs of owning or leasing an electric car:

Cost of Electric Cars Compared to Gas-Powered Cars

Depending on the make and model you want to drive, electric cars typically come with a higher price tag than gas-powered vehicles. However, some compact electric vehicles with adequate range for city driving or small commutes typically retail for a lower sticker price than many gas-powered SUVs or mid-size sedans.

Compared with gasoline-powered automobiles, electric vehicles typically require less maintenance, erasing the cost of oil changes every three to five thousand miles. Electric parts are often more expensive to replace or fix in the event of an accident or vehicle malfunction, but the lithium-ion battery is typically covered for 10 years. Like gas-powered vehicles, electric cars also require new tires after normal wear.

It's also worth noting that the cost of insurance differs between an EV and a gasoline-powered vehicle. On average, EVs cost more to insure, due to their unique structure and higher cost for repairs in the event of an accident. With an average premium of $2,280 per year, accounting for the increased cost of insurance is another important factor in your monthly payments and overall cost as an EV owner.

Costs of Powering an Electric Vehicle

What makes EVs so attractive to drivers outside of the eco-friendly emissions is the ability to power a vehicle solely on electric battery power. Electric vehicles run on the energy generated by an electric motor, which is measured in kilowatts. Higher kilowatt outputs equal more power to accelerate and sustain the EV.

Similar to the concept of an internal combustion engine, the more power you feed your car, the more speed and handling you get from the vehicle. Instead of looking for a more powerful engine fueled by gasoline, EVs carry power based on the vehicle's battery capacity in kilowatt-hours (kWh), which tells you how much energy a vehicle stores in the battery pack.

Basic Charging Costs

The cost of charging your EV based on kilowatt-hours will also impact the overall price of an electric vehicle. The most expensive charge comes from public fast-charging stations, but if you plan out your charging schedule to regularly recharge at your home, you'll incur minimal energy costs.

You can get an idea of the true cost of running an EV based on how much it costs to recharge the battery. For example, using a typical 120-volt outlet (the same one you'd use to plug in your toaster) takes an average of 40-50 hours to fully charge an electric battery at the lowest power level. With the average cost of electricity at 15 cents per kWh, you're still only paying $7.50 max to charge your vehicle.

Most EVs offer a level 2 charging adapter you can outfit for your house. These typically run 240 volts, channeling more charging power to the battery. Level 2 charges refill your battery power in an average of 4-10 hours, taking your costs down to $1.50 or less. Kilowatt-hour rates vary widely by state, but using the national average helps you calculate a rough estimate of how driving an EV adds to your electric bill.

Costs for Fast Charges

As an EV driver, you're likely spending a lot less to power up instead of fueling your car. But pulling into a fast-charging station increases your energy costs.

That's because the convenient fast charge costs more per kilowatt-hour, often double or more than the average price you'd pay at home. For example, EVgo, a nationwide, fast charging station, charges non-members 34 cents per kWh or 29 cents for basic-level members plus fees.

To avoid paying more for a battery recharge, plan to power up overnight, saving fast charges for times when it's absolutely necessary, such as unexpected traffic or during a long road trip.

Luxury Electric Car Prices

Here's a look at some of the pricing for popular electric cars in this class:

2022 Jaguar I-Pace: $69,900

Luxurious styling throughout and an all-wheel drive with 394 horsepower make the new I-Pace an exciting electric ride. The I-Pace's attractive infotainment package offers a complimentary 4G data plan, 360-degree camera system, and wireless charging. With a range of 222 miles, the new I-Pace takes less time to fully charge than its previous iteration thanks to an upgraded onboard charger.

2022 Tesla Model S: $96,590

With a 375-mile range, the 2022 Model S comes with semi autonomous driving capabilities and plenty of speed for a luxury sedan. Offering all-wheel drive in all versions of the vehicle, the Model S ranks high for electric efficiency in a luxury EV.

Upgrade to the Plaid Model S trim for extended range and power. At $127,590, Plaid offers plenty of zip with 1020 horsepower, which slightly compromises the range, bringing it down to 348 miles on a single charge, still much higher than many an EV in its class.

Compact EV Prices

Read below to compare prices for compact EVs:

2023 Chevy Bolt: $25,600

The lowest-priced EV on the market, the Chevy Bolt delivers a lot in a little package with a 259-mile range and 200-horsepower motor. The 2LT trim adds about $3,000 to the price tag but comes with a heated steering wheel, heated leather seats, and a 360-degree camera. The Bolt's standard dual-level charging cord powers levels one and two with an available fast charging adapter.

2023 Nissan Leaf: $27,800

One of the first EV options marketed to the general public, the 2023 version of the long-produced Nissan Leaf comes with new exterior styling on the front bumper and grille, upgraded lighting, and multi-spoke wheels. Available in two trims, the S offers a base model with a range of about 212 miles, while the SV plus extends the vehicle's range and adds a larger motor.

2021 BMW i3: $38,600

BMW's stylish EV offers a smooth ride and posh interior styling in a compact vehicle. With a surprising amount of room for cargo, once you fold down the back seat, the i3's rear doors are hinged in the back so there's no center pillar between the doors. The i3 only offers 153 miles of range compared to other compact vehicles, but if all you need is a comfortable commute, this BMW offers a solid choice.

EV Sedan Prices

Read below for pricing on various electric Sedan models:

2022 Tesla Model 3: $40,390

A more accessible Tesla model based on the price, the Model 3 combines an extensive range with smooth steering and acceleration. The long-range trim offers even more miles, topping out 358 from a full charge. Tesla's Model 3 also gives you heated front seats, autopilot semi-autonomous driving, and navigation as standard features on any trim level.