DG+ developed a model to estimate the total cost of ownership (TCO) of both electric vehicles and internal combustion engine (ICE) vehicles across each state market. The proprietary TCO model uses estimates based on the Ford F-150 XL SuperCrew and the Ford Lightning EV SuperCrew pickup trucks. Using these analogous models allowed DG+ to fairly assess the cost of ownership of both EVs and ICEs in each state. Estimates include upfront costs, sales tax, rebates, fuel, maintenance, insurance, and depreciation over a five-year period.
The monthly cost of vehicle ownership across a five-year period was lower for individuals that own EVs in all 50 states and the District of Columbia. The greatest savings were seen in Oregon, where EV drivers saved $239 per month. Residents of Illinois and Maine saw more than $200 in EV savings per month as well. In Alaska, EV drivers have the lowest savings at $51 per month. Key drivers for lower EV TCO were the $7,500 federal grant for EVs, state incentives, low electricity costs, and high gas prices.
As EV ownership continues to expand and the sector grows, incentives will inevitably drop away. However, as EVs become more cost-competitive and charging infrastructure becomes more prevalent, the cost of ownership should continue to fall.
For more information about this analysis and its methodology, download our Q1 2023 EV Policy Report.
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