What does it cost? This is the bottom line for many new car shoppers—but for an EV, the answer is not as simple as the “sticker price.” Customers need to understand the real story: the total cost of ownership of an EV compared to a gas vehicle.
Offsetting the Purchase Price
The initial purchase price of an EV may be offset by a variety of potentially available incentives. These might include federal and state government incentives as well as local utility incentives.
For example, when a customer purchases a new electric vehicle, they may be eligible for a federal income tax credit of up to $7,5001. The credit amount will vary based on the capacity of the battery used to power the vehicle, as well as the total number of electrified vehicles sold by a manufacturer.
You should be familiar with the incentives available to your customers — use these online tools to help with your research:
- Comprehensive incentives by ZIP code: https://plugstar.zappyride.com/tools/incentives
- Federal credit information: https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
- Federal and State Laws and Incentives: https://afdc.energy.gov/laws/
Lower Operating Costs
It may also cost less to operate an EV on a per-mile basis because “EV fueling” costs are much lower than those of gas vehicles. Depending on the customer’s area, electricity is typically equivalent to about $1 per gallon for gas.2
Fewer Maintenance Costs
Because EVs have fewer moving parts than gas vehicles, they typically require fewer repairs and less maintenance. EVs do not have drive belts, spark plugs, or timing chains that may need replacement and they do not need oil, oil filter changes, or transmission fluid.
EVs have some normal wear and tear items such as windshield wipers, tires, and brakes that will need routine maintenance during the vehicle’s life.
Another consideration is the high-voltage battery. All electric vehicle high-voltage batteries lose capacity/range during their lifespan. The Kia high-voltage battery warranty* covers capacity loss (State of Health or “SOH”) to 70% for 10 years/100,000 miles. For example, if the original EPA-estimated range of the vehicle is 239 miles, then it could have around 167 miles by the end of the warranty* period.
Calculating Miles Per Gallon Equivalent MPGe*
MPGe* measures how far an EV could drive if it used the amount of energy equivalent to one gallon of gasoline. For example, the Kia Niro EV is equipped with a 64.0 kWh battery; its EPA all-electric range* is 239 miles and uses 30 kWh per 100 miles. To calculate MPGe*, take the 30kWh and divide it by the 33.7kWh (EPA’s 1-gallon equivalent) and the result is 0.89. The next step is to divide 0.89 into 100 (100/0.89) resulting in 112 or 112 MPGe*. There may be differences in the actual numbers due to rounding.
Telling the Story
According to Consumer Reports3, switching from a traditional gas-powered car to an electric vehicle can be a great way to save money over the life of the vehicle. Lower fueling costs combined with lower maintenance and repair costs can offset the purchase price, and lead to long-term savings, when compared with a gas-powered car of similar size and with comparable features.
Learn More
Visit the new Kia EV Learning Center on the Kia Product Presentation Center for a wealth of information on EVs, helpful links, FAQs, and more.
*Safety Information and Legal Disclaimers
All-Electric Range (AER): Based on EPA estimates on a full battery charge. Actual range will vary with options, driving conditions, driving habits, vehicle maintenance, charging practice, battery age, weather, temperature and your vehicle’s condition. Battery capacity will decrease with time and use. For more information on range, please see www.fueleconomy.gov.
MPGe: Actual MPGe will vary based on driving habits, vehicle maintenance, charging practice, battery age, weather, temperature, and road/traffic conditions. Battery capacity will decrease with time and use. For more information on MPGe and range, please see www.fueleconomy.gov.
Warranty: The Kia Basic Limited Warranty program includes various warranties and roadside assistance. Warranties include a limited powertrain warranty and the New Vehicle Limited Warranty (Basic). All warranties and roadside assistance are limited. See retailer for details or go to kia.com.
1 These incentives are provided by a third party and are not subject to Kia’s control. Such incentives may change without notice. The actual benefit to the buyer of such tax credits will vary depending on numerous factors, including the buyer’s individual tax situation.
2 https://pluginamerica.org/why-go-plug-in
3 https://www.consumerreports.org/car-repair-maintenance/pay-less-for-vehicle-maintenance-with-an-ev/