A new study from Vincentric, in which the company reviewed 40 electric vehicles from the most recent available model-year, versus comparable internal combustion engine vehicles, found that 38 of the EV models had lower total cost of ownership over five years than their ICE counterparts.
The 40-page Canadian Electric Vehicle (EV) Cost of Ownership Analysis offers insight into the cost effectiveness of EVs in Canada. The company analyzed eight cost factors relating to a vehicle’s cost of ownership: depreciation, fees and taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs.
“EVs typically have a higher purchase price than gasoline-powered vehicles, which can make even the most environmentally conscious consumers hesitate to switch to an electric vehicle,” said David Wurster, President of Vincentric, in a statement. “With the results of our study showing that an impressive 95 per cent of EVs in Canada cost less to own than their gasoline alternatives, Canadian shoppers who are considering going electric can have confidence in both the financial and environmental benefits of that switch.”
When considering the “payback period,” described by the company as the time it takes buyers to recoup the purchase price of an EV through ownership cost savings, nine models enjoyed an immediate payback period because their market price was lower or equal to their ICE alternatives. Another 11 EVs recouped their price premium within five years.
Study highlights also show that EV strengths include fuel and maintenance costs; all 40 EVs had lower fuel costs than their ICE alternatives, while 34 EVs had lower maintenance costs than their ICE counterparts. However, it is worth noting that one of the downsides is depreciation: 26 of the 40 EVs had higher depreciation than their ICE alternatives.
