Analysis · Buying an EV
Buying an EV: what decides the five-year cost
Guides on mileage, resale value, cold weather, luxury tiers and the hybrid alternative, plus state policy analysis. Each one shows which inputs move the five-year total and by how much, with worked numbers.
Drive Economics has no affiliation with, sponsorship from, or endorsement by any automaker, dealer, charger maker, utility or program named here.
The short answer
- Depreciation and purchase price net of incentives are usually the largest items over five years, ahead of fuel or electricity.
- Fuel savings scale with annual mileage and the gap between the local gas price and the electricity rate actually paid. Low-mileage drivers on high electricity rates see the smallest savings.
- An efficient hybrid narrows the fuel gap more than a conventional gas car does, so the comparison vehicle changes the answer as much as the EV does.
- The federal $7,500 credit is not currently active (IRS). State rebates and utility programs are listed in Vehicle Rebates.
Guides and policy analysis
Frameworks that apply across markets, and state policy changes that move results.
When a Hybrid Beats an EV: The Crossover Points
Under some mileage, fuel price and incentive conditions a hybrid beats an EV on 5-year cost. Where the crossover happens, with case-study examples.
Read →EV Buyer’s Guide by Annual Mileage: Which EVs Pay Off
Mileage is the biggest driver of EV economics. Best EV picks for four annual mileage tiers, with 5-year cost math and depreciation vs. fuel savings.
Read →EV Depreciation: Which Electric Cars Hold Their Value
EV depreciation in 2026: 5-year residual values for 17 electric vehicles, why some hold value and luxury EVs lose 55–65% in three years.
Read →When Luxury EV Economics Work: A Four-Condition Test
Four conditions decide when a luxury EV overcomes its depreciation penalty: efficiency, gas prices, rate discipline and mileage. Case-study based.
Read →Best EVs for Cold-Weather Commuters: 2026 Rankings
Which EVs work for cold-weather commuting? A ranking by heat pump use, real-world winter range retention and thermal management, with case-study links.
Read →Two- and Three-EV Households: Charging and Cost Math
Two- and three-EV household economics: shared vs. separate home chargers, rate strategy for combined household kWh, and 5-year total cost.
Read →Colorado EV Tax Credit Cut: What Happened to EV Sales
Colorado's IMVC EV credit fell from $5,000 to $750 in 2025. Sales collapsed 64%. What the largest natural experiment in EV policy reveals.
Read →About these analyses
Each guide states its assumptions and links its sources. See the methodology for how depreciation, fuel and insurance are modeled.
Drive Economics has no affiliation with, sponsorship from, or endorsement by any automaker, dealer, charger maker, utility or program named here.