14 Surprising Costs That Come With Owning EVs
Electric cars are no longer shiny items we can only admire from afar. In 2024 alone, up to 20 new EV models became available in the U.S.A., making the list of options more diverse. Manufacturers highlight savings on fuel and maintenance and the promise of a greener future, which are some of the major selling points.
But before you jump on the EV bandwagon, there are several costs associated with owning an EV that might surprise you. From higher electricity bills to unexpected charging fees, here are 14 costs that make the electric dream a little less rosy.
Battery Replacement
Many new EV converts focus on the hefty upfront price tags when they should be more worried about the price of replacing batteries. The cost of producing these massive lithium-ion battery packs is what makes electric vehicles so expensive in the first place.
EV batteries are designed and built for durability. For example, almost every manufacturer promises a battery warranty for up to ten years, and a Geotab study shows that most EV batteries will outlast the vehicle’s lifespan.
But like every complex component, batteries degrade over time, and in the rare cases where batteries need total replacements, they don’t come cheap. Replacement EV battery packs typically cost anywhere from $7,000 to $30,000, and that’s not exactly pocket change. BloombergNEF predicts that by 2030, battery prices will drop significantly, but until then, consider battery replacement costs when shopping for an EV.
Home Charging Infrastructure
Plugging an EV into your regular wall outlet gives you 30 to 40 miles, which is like trying to fill a bucket with a teaspoon — it’ll charge your car… eventually. While that is good enough for moving around town, a Level 2 charger is required for longer miles.
According to J.D. Power, Level 2 chargers allow EV owners to juice up 5-7 times faster and cost anywhere from $1,000 to $1,500 if installed from scratch. This includes hiring a professional electrician, wiring, and installing a 240-volt outlet and new service panel.
However, if you’re looking for faster charging times, a Level 3 home charger drives up to $50,000. Older homes might need a whole panel upgrade to handle the extra load, adding more cost to the already pricey adventure.
Increased Electricity Bills
If you regularly charge your EV at home, you can only expect a slightly higher electricity bill than you usually would. At 16.88 cents per kWh, Kelly Blue Book estimates that the average EV owner will add around $68 to their monthly electricity bill.
Depending on where you live and how much distance you cover, that number could increase significantly.
Yes, we know this is way cheaper than filling a gas tank weekly, but many new EV converts would be shocked at the bump in their electricity bill.
Higher Entry-level Cost
Electric cars are all about saving money on maintenance and fuel in the long run, but this comes at a cost. The average EV is more expensive than a comparable gas-powered car, and even base models are out of reach for budget-conscious buyers.
According to Edmunds, the average electric compact SUV costs $53,048, while similar vehicles with gas engines start at $35,722 — a $17,326 difference.
Higher Registration Fee
It's mandatory for EV owners to pay additional registration fees in 33 states. Depending on where you live, the fees could be as little as $50 per year or even more than $200.
As electric cars gain more adoption, states impose higher registration fees to compensate for lost revenue on gasoline taxes. While this makes sense, it feels like electric car owners are getting punished for trying to reduce emissions.
Higher Insurance Premiums
EVs, especially those shiny Teslas, come with insurance premiums that can leave a hole in your pocket. Naturally, less maintenance and fewer moving parts should mean cheaper insurance, but that’s not the case with cars. According to Motor, the cost to insure an EV is $98 more per month compared to the national average insurance rate.
Why the disparity? For starters, batteries and other high-tech features can cost an arm and a leg if they need replacing. Also, many electric cars are super quick, and when matched with spirited drivers, it can be a recipe for higher insurance rates.
Public Charging Fees
Another little detail that blindsides most new EV owners is the cost of public charging. Although you can find free ones, most public charging stations charge per kWh, while others offer a subscription model. Public charging fees differ based on the charging network and location.
Of course, shorter charging times translate to higher fees as DC fast charging is more expensive than Level 2 charging. In California, for instance, EV owners pay roughly $0.30 per kWh for Level 2 charging, while DC fast charging costs $0.40 per kWh. On the bright side, you’re still paying less than drivers with gas-guzzlers.
Accessing Add-ons
When you buy a car, dealers usually try to talk you into getting add-ons for your vehicle. These optional products can help improve your overall driving experience, but you can decide not to buy them. EV companies take this tactic up by teasing the optional extras ‘after’ you’ve bought the car.
You see a feature you want to try out, only to discover it’s locked behind a paywall. For example, Tesla’s Full-Self Driving software with automatic lane changes and emergency braking now costs $99 monthly. Drivers who have owned an ICE car and are used to standard features will be surprised by this pay-to-play model.
Special Maintenance
Generally, electric car owners don’t have to worry about spark plugs or messy oil changes, but they still encounter various maintenance headaches. The most common problems for EVs are electrical issues and faulty chargers or inverters that are pricey to maintain.
Another thing that surprises new EV owners is that tires do not last as long as expected. Electric cars are heavier than ICE options, and with all that strain, the tires wear faster. Moreover, as EVs are still relatively new, auto technicians with specialized knowledge are few and far between.
Winter Range Reduction
Like most humans, EV batteries don’t like the winter. In cold temperatures, battery performance drops significantly, reducing travel ranges. According to the American Automobile Association, the average EV can lose 41% of its range when temperatures drop to 20°F.
Batteries are not the only problem. Other components, such as defroster and heater, draw more power in cold weather, further reducing your range.
Depreciation
An iSeeCars report reveals that electric cars lose 49.1% of their value over five years, while ICE vehicles lose only 38.8% over the same period. If EVs are the future, why aren’t they holding their value?
A couple of factors account for that. For one, the advances in battery tech mean older EVs get outdated fast. With new models flooding the market at the speed of light, used EVs are not enticing, leading to lower resale values.
Out-of-Warranty Repairs
Even if you save on gas and maintenance, out-of-warranty repairs can wipe out your savings. Most EVs come with decent 8-year or 100,000-mile warranties for battery and powertrain. Still, minor collisions can cause serious damage to batteries and battery casings.
EVs are moving computers, and those delicate parts can be harder to find than a hen’s teeth. Plus, not every auto repair shop can work on EVs, leaving you at the mercy of specialized shops or dealerships. So, good luck if you ever need repairs out-of-warranty.
Extreme Weather Issues
In addition to the impact of winter blues discussed above, wild weather issues can leave you and your electrified vehicle stranded. EVs also do not fare well on hot summer days, and your car can suddenly take a nap when you need it the most.
American Automobile Association says EVs could lose up to 17% of driving range in hot temperatures. So, if you live in an area likely to experience extreme weather conditions, it would be wise to consider a backup vehicle for those wild weather days.
Terrain and Route Impact
Where you live and the routes you frequently travel can significantly affect your EV’s range. Hilly routes and rough terrains naturally sap more energy and can reduce your car’s range.
Likewise, stop-and-go traffic, carrying heavy loads, and strong headwinds drain batteries faster and can leave you stranded. To prevent this issue, owners can use route-planning apps to estimate travel distances and locate charging stations.
