Electric vehicles are inflation relief

 

A cost of ownership calculator and other tools can help you know how much you’ll save

By Cameron Wolf, ZappyRide

 
 

It's no secret that the U.S. has been experiencing severe inflation and high gas prices. Money printing into circulation continues to be growing at a tremendous rate, and interest rates are shifting. This is leading to a perfect storm of inflationary pressure for the American consumer, who feels this in daily expenditures such as groceries, goods, and other essentials.

Inflation is also translating into higher prices for investments, commodities, and particularly transportation. Airlines, public transit, and regular commuters are feeling the strain of rising fuel costs, which have increased dramatically since August 2021. The cost of living is rising faster than wages, and people are struggling to keep up. Many are turning to alternative transportation methods, such as biking and walking, in order to save money.

What can the American consumer do to mitigate the short-term effects of inflation? 

EV’s may be the answer

Electric vehicles (EVs) are becoming increasingly popular as gas prices continue to rise. In fact, EV sales have doubled in the past year, while, correlational or not, average fuel prices have jumped from an average of $2.94/gallon in April 2021 to $4.21/gallon in April 2022, or 43%.

Currently, the U.S. Energy Information Administration pegs the average retail price per kilowatt hour at $0.107 in April 2021, compared to $0.1174 in April 2022, a mere 9.7% increase.

As a result, studies continue to show that EV drivers are experiencing less transportation-related financial strain than drivers of traditional internal combustion engine (ICE) cars. A “Consumer Reports” study stated that EV owners spent approximately 60 percent less on fuel each year than gas vehicle owners.

Cost of ownership scenarios are accessible in real time on a number of internet sites to illustrate the expense of driving a car for its entire life cycle. El Paso Electric, for example, offers a popular EV cost of ownership calculator. The tool, built by ZappyRide, shows the total cost of ownership via incentive information, fueling costs, maintenance costs, and a plethora of other EV information.

ZappyRide has been building this type of calculator for nearly 5 years and is quickly becoming the authority among EV data providers. It builds white-label websites and tools for Auto OEMs, utilities, fleets, and other greentech stakeholders to promote their thought leadership in the electrification of consumer and fleet vehicles.

Let's build a scenario

Let's say you want to purchase a 2023 Chevy Bolt in Texas.

CRITERIA FOR SCENARIO: 

  • 20k miles/year <> 1,666 miles/month <> ~55 miles daily

  • 5 years of ownership

  • Average gallon of fuel cost in TX at time of writing: $3.58

  • Comparison vehicle based on size and price: VW GTI S 

DATA:

  • MSRP for both vehicles is $25,600 (before incentives and resale value).

  • The cost of gas over the first 5 years of the car @ $3.58/gal would be $12,785. 

    • $246 to fill up monthly

  • The cost of electricity @ $0.1374/kWh is $3,846 (courtesy of El Paso Electric).

    • $64 to ‘fill up’ monthly

  • Removing gasoline expenses is an excellent method to recover lost spending power during a recession, and driving an EV for five years will save you $8,939 on fuel expenditures.

In addition, EVs have far lower maintenance costs and incentive programs via tax credits, meaning that they are even less expensive to own in the long run.

This is because EVs have far lower maintenance costs than ICE cars. There’s no oil to change, no filters to replace, and no spark plugs or wires to worry about.

When comparing a Bolt EV to a VW GTI over 5 years, the cost breakdown is staggering:

Of course, there are various factors that will affect how much an individual saves, but on the whole, EVs are less expensive to operate and maintain than ICE cars. 

To see geographic differentiation, the following is a list of links for utilities around the U.S:

Based on the study above, it’s fair to assume that saving $182 a month at the pump will ease the inflationary pressure the American consumer is experiencing.

If you’re still not convinced about the cost savings, take a look at some of the amazing new models coming out in 2023. You may surprise yourself with how much they have to offer.

 
 
Electric VehiclesScott Fieldselectric car, Cost of ownership calculator, EVs as inflation relief, EV sales, Consumer Reports, El Paso Electric, ZappyRide