AAA Study: EVs Still Cost More to Own Than Gas or Hybrid Cars, But the Gap Is Shrinking

A new analysis from AAA shows that fully electric vehicles remain more expensive to own over five years than their gasoline or hybrid counterparts, even as fuel prices stay elevated. The organization’s annual cost-of-ownership study, which examines depreciation, fuel or electricity, insurance, maintenance, and repairs, found that the total expense of owning an EV is still higher than that of a comparable gas-powered or hybrid model.

The gap, however, is narrowing. AAA notes that the difference in ownership costs has been closing, helped by factors such as lower maintenance needs for EVs and a growing number of more affordable electric models. The study underscores that while sticker prices for EVs have come down, other costs — particularly depreciation and insurance — continue to weigh on the total cost of ownership.

For consumers weighing their options, the findings highlight a persistent trade-off. Gas and hybrid vehicles often have a lower upfront cost and, in some cases, cheaper insurance, while EVs can offer savings on fuel and routine maintenance. The AAA data suggests that the financial case for EVs is improving, but it has not yet reached parity with conventional or hybrid powertrains on a total-cost basis.

The study arrives amid a push by automakers to expand hybrid and electric lineups, and as policymakers continue to encourage EV adoption. AAA’s numbers indicate that while fuel prices remain a pain point at the pump, they alone are not enough to make EVs the cheapest choice over a five-year horizon.

AAA has not released a full breakdown of the updated figures in the summary, but the organization’s cost-of-ownership research is widely watched as a gauge of how quickly electric vehicles are becoming more competitive on overall economics. The takeaway: the direction is favorable for EVs, but gas and hybrid models still hold an edge in total ownership cost.