More Than Half Of All EVs Remain Costlier To Own Than ICE Cars, Study Shows

Forbes - May 2nd, 2025

A recent study by Vincentric reveals that 56% of electric vehicles (EVs) currently on the market cost more to own in the long run compared to their gasoline-powered counterparts. This is primarily attributed to higher initial purchase prices and rapid depreciation rates. The analysis, which covered 54 EV models, found that only 44% of EVs offer lower five-year ownership costs than internal combustion engine (ICE) vehicles. Despite their zero-emissions advantage, the financial benefits of EVs are diminished by factors such as limited eligibility for federal tax credits and increased registration and insurance costs.

The study highlights the complexity of the EV market, where eco-friendliness competes with economic viability. While EVs offer lower energy and maintenance costs, their overall value proposition is challenged by depreciation and upfront expenses. The report underscores the evolving dynamics of the automotive market, where technological advancements and policy changes, like those affecting tax credits, play critical roles. As the industry progresses, consumers and manufacturers alike must weigh the environmental benefits against financial considerations, particularly with luxury EVs showing greater long-term savings potential compared to more affordable models.

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RATING

7.6

Fair Story

Consider it well-founded

The article provides a comprehensive analysis of the cost of ownership for electric vehicles compared to internal combustion engine vehicles. It effectively highlights both the advantages and disadvantages of EVs, using data from a reputable source to support its claims. The article is timely and relevant, addressing issues of public interest and potential impact on consumer decision-making and policy discussions. While the article is generally accurate and clear, it could benefit from additional sources and perspectives to enhance balance and transparency. Overall, the article is informative and engaging, with the potential to influence public discourse on sustainable transportation.

Accuracy

The article presents a well-supported analysis of the cost of ownership for electric vehicles (EVs) compared to internal combustion engine (ICE) vehicles, citing a study by Vincentric. It accurately reports that 44% of the EVs studied have lower ownership costs than comparable ICE models, a figure that aligns with the source. The article correctly highlights the factors contributing to these costs, such as depreciation and maintenance. However, it could benefit from further verification of specific claims, such as the exact percentage decrease in maintenance costs over time and the environmental impact figures. Overall, the article's claims are largely accurate, though some details would benefit from additional verification.

Balance

The article provides a balanced view of the cost-effectiveness of EVs, discussing both the advantages and disadvantages. It highlights the lower energy and maintenance costs of EVs while also acknowledging their higher depreciation rates and upfront costs. However, the article could include more perspectives from consumers or industry experts on the practical implications of these findings. Additionally, while it mentions potential changes to federal tax credits, it does not explore the political or economic factors influencing these changes in depth.

Clarity

The article is well-structured and uses clear language to convey its findings. It logically presents the information, starting with the main claim and supporting it with detailed data from the study. The use of specific examples, such as the cost savings of luxury EV models, enhances understanding. However, the article could improve clarity by simplifying some of the technical terms and providing definitions for less familiar concepts, such as the federal tax credit eligibility criteria.

Source quality

The primary source of information is a study by Vincentric, a reputable automotive market research company. This lends credibility to the article, as Vincentric is known for providing detailed analyses of vehicle costs. However, the article relies heavily on this single source and could be strengthened by incorporating additional sources or expert opinions to provide a more comprehensive view of the topic.

Transparency

The article is transparent in its presentation of the Vincentric study's findings, clearly stating the methodology used to compare EVs and ICE vehicles. It explains the criteria for cost comparison, such as depreciation and maintenance, which helps readers understand the basis of the claims. However, the article could improve transparency by providing more context on the limitations of the study or potential biases, such as the exclusion of certain EV models from the analysis.