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Tired of Gasoline Prices? Here’s a Surprising Way to Save Money
How to cut your car expenses 40-65 percent.
Despite federal EV tax credits ending last year, most car buyers who purchase an EV will save money in the long-run. It’s their high upfront cost that’s the problem — right?
Here’s what no one seems to be talking about — used EVs are the same price or cheaper than their gas-powered equivalents. And in the United States, most people buy used cars, not new ones — 3 out of every 4 cars sold are pre-owned.
For the budget-minded, choosing a 2022–2024 pre-owned EV from the ten most common electric models in the United States offers a sticker price on average 10 percent less than a comparable used gas car. For the most popular luxury EVs, such as the Tesla Model S and Ford Mustang Mach-E, used options tend to sell for around the same range as an entry-level to mid-range used luxury gas car.
A car buyer can begin saving money immediately by choosing a used EV instead of a gas-powered vehicle with the same sticker price. And those savings only multiply with lower maintenance and fuel costs from going electric.
The average American spends more money on gasoline than on electricity and natural gas combined. Drivers who charge daily at home can normally cut their annual fuel expenses $800–$1,000 compared to gassing up at the pump.
If we want to talk about energy burdens and affordability, we have to talk about cars. This single change — switching to an EV — can cut a driver’s operating costs 40–65 percent depending on how they charge.
Big Takeaways
- Low-cost used EVs cost 10 percent less on average than their gas equivalents, and mid-range EVs tend to be similarly priced. In August 2025, the difference in sale price between a used EV and a used gas car fell to just $897 across all price ranges – economy to luxury.
- Fuel and maintenance are where EV drivers keep saving. Electricity in general boasts a cheaper cost per mile and more stable and predictable prices than gas, while maintenance costs stay low thanks to fewer moving parts and less wear.
- Lease returns and trade-ins will only continue to boost the supply of affordable EVs. With almost 75 percent of US EV transactions in 2025 leases, over 1 million EVs are projected to enter the used market over the next 3 years as leases expire.
Past EV challenges have become smaller considerations
Battery Life
Batteries are proving to last 10–20 years longer than first expected and most EVs on the road today are operating with their original battery.
Real-world driving has proven EV batteries last up to 40 percent more than predicted in early lab tests. Typical stop-and-go traffic and on-road conditions are less harsh than constant lab cycles, potentially extending the battery’s usable life 300,000 miles or more — more durable than gas engines.
A standard American gas car tends to have a useful life of about 12 years or 150,000–200,000 miles before repairs begin to exceed its resale value.
EV battery replacements are expensive. How long a car battery will last will depend in part on when your EV was manufactured. But many battery replacements are covered by warranty, even for used EVs. Federal law requires a minimum 8-year or 100,000-mile coverage for EV batteries. Some states and manufacturers have extended this to 10 years or 150,000 miles. Most warranties will replace a battery that drops below 70 percent capacity before the eight-year mark. Used or refurbished batteries are also a growing option, which can keep costs down when a replacement is necessary.
Before making a purchase, check the battery age and consider how much you’ll be able to save until you need to make a replacement.
Charging
The convenience and cost of charging an electric vehicle are important factors to consider. While public vehicle chargers are becoming more available, most EV drivers charge at home — often overnight when electricity demand is at its lowest, which could help them save on their electricity bills.
There are two main ways to get a vehicle plugged in at home. Plugging a vehicle into a basic home outlet (Level 1 charging) is one option to consider. This method is even possible in many multifamily homes like duplexes, fourplexes, or low-rise townhouses or condos, with the help of an extension cord. Since this method relies on existing plugs (and a charging cord that was likely included with the purchase of the vehicle), it is the cheapest option to adopt. It will take longer to charge, but most people can just charge overnight.
Level 2 chargers are another option. Faster than Level 1 chargers, these chargers can be installed in a garage or at a parking spot. Level 2 chargers typically cost between $1,200 and $3,000, including materials and installation, but many electric utilities offer incentives that can cover some or all of this cost. 84 percent of the United States is covered by a program that offers EV charger rebates or incentives, according to Briteswitch, which also provides info on local programs.
Roughly 60 percent of Americans now live within two miles of a public charger. 3,300 public fast-charging stations came online in 2025 — meaning in just one year, the number of public fast-chargers grew by 30 percent. This comes despite a rocky rollout for the National Electric Vehicle Infrastructure (NEVI) program. So far, states have tapped only about 2 percent of the $7.5 billion available for DC fast-charging, and now that a federal court has overthrown the suspension of NEVI, projects are again coming back online. By 2030, a fast charger should be available every 50 miles along any major highway.
Electricity prices
Electricity bills are rising across the country due to higher demand, and many advocacy groups, policymakers, regulators, and utilities are working to address electricity affordability and stabilize rising costs. Even as these prices rise, driving and charging an electric vehicle is still going to be cheaper than a gas-powered car over the course of the next decade. Even if electricity prices doubled, an EV would still be less expensive to operate, given the additional maintenance savings.
As decision-makers implement solutions to reduce electricity prices, the concerns about the cost to charge will likely dissipate. In fact, one proposed method is to lower rates for electric vehicles, which typically can be charged at off-peak hours to avoid the highest demand hours on the grid.
Insurance
EVs are usually more expensive to insure than gas cars, but not always. This can be due to more EVs being luxury cars, repair markets still getting up to scale, and some car components being more expensive. As the repair market grows, costs for repairs — and therefore insurance — may come down.
Used EVs offer relief
The biggest barrier is simply this: not enough people know they could be saving a lot of money by going electric. The next time they buy a used car, they can start saving money right away.
That money is then available for groceries, education, medical needs, and more. 1 out of 3 families currently have to pass on these essentials now due to large energy bills. This relief offers breathing room and security.
RMI is exploring many ways to make energy cost less. Learn more about how we can cut energy bills in half.