Is Buying an Electric Car Worth It in 2025?

EVs come with a different economic model of ownership, but it can often beat out gas powered vehicles. Roughly half of EVs beat out their ICE-vehicle counterparts in total cost of ownership, according to Vincentric.

WorkMoney put together how to determine if buying an electric car is worth it.

How much does it cost to own an EV?

According to Kelley Blue Book, the average cost of a new EV was $57,245. However, costs vary widely depending on the type of vehicle. For instance, a Nissan Leaf — the cheapest EV on the market — starts at ​​$29,280. Luxury cars, like the Mercedes-Benz EQS SUV, start at $106,400.

The average cost of all new cars is $49,077, so EVs are still more expensive than their gas counterparts. But ownership costs are more than what you pay when driving off the lot. All cars have maintenance, insurance, and repair costs. Owning a gas car is different from owning an EV. 

Let’s compare two of the top cars that get financed: the Tesla Model 3 and the Honda CR-V. Here’s the estimated true cost of ownership after five years.

*All numbers are estimates and may vary based on location.

After five years, EVs are more expensive than gas cars. But, after 8-10 years, the EV will save you $2,650. 

Previously, the government gave a federal tax credit of up to $7,500 for new EVs and up to $4,000 for qualifying used ones. The federal tax incentive for buying EVs ended on Sept. 30. 

Use the Energy Department’s vehicle calculator to compare cars you’re looking at buying along, with your regular driving habits, to get an idea of your total ownership costs.

Other costs of EV vs. gas

If all you’ve ever had is a gas car, jumping to an EV may bring more upfront costs.

Charging

Including a higher dealer price tag, EVs require charging, not gas. It’s ideal if you have an option to charge at home, but it's not required. Public charging stations are available, but access varies by where you live. Installing Level 2 charging allows you to charge your EV faster, but it likely needs an electrician to do so. 

Once installed, your electricity bill will likely increase. That amount will vary widely based on how much your electricity provider charges, and what time you charge.

For most folks, the average cost to fully recharge a completely depleted battery on an EV with a 200-mile range is about $6. If you’re recharging twice a week, that’s roughly $48 per month.

Maintenance 

Remember long-term costs, as older cars are more expensive to maintain. A 2020 Consumer Reports found that on average, EV owners save $4,600 in lifetime repair and maintenance costs compared to gas cars.

Depreciation

EVs depreciate faster than gas cars. A recent survey found that EVs depreciate 30% faster when compared to gas-powered vehicles.

The best way to avoid absorbing that depreciation is to purchase a used vehicle. 

Leasing vs. Buying EVs

EVs now make up 20% of all new leases, and the Tesla Model 3 is the top leased EV model. According to Experian, the average Model 3 leasing payment is $395 a month. The next-most popular model — the Honda CR-V — averages $512 a month. That’s only slightly lower than the third spot, the Tesla Model Y, averaging $555 monthly for a lease.

If you’re thinking about getting into an EV but don’t want to commit to buying one — either outright or with a car loan — you’re not alone. Most consumers enter the EV market by leasing. So far this year, more than 57% of new EV purchases came from leasing, compared to 30% who buy. The average car loan payment for a Model 3 is $616 — $221 more than getting the same car on a lease. But it’s still less expensive than getting a CR-V, which averages $631 per month for buyers, and $657 for a Model Y purchase.

Source: Experian State of the Automotive Finance Market Q2 2025

New vs. used EVs

Like gas cars, new EVs cost more than their pre-owned counterparts. It’s important to weigh the pros and cons of used EVs before buying one.

Pros of used EVs

• Lower entry cost. Get into the EV market without paying as much as you would for a new car.

• Better overall condition. Compared to gas cars, used EVs are in better condition, which means you get a better value for your money.

• Less maintenance. As gas cars age, they require more maintenance and upkeep. Used EVs don’t have the same requirements.

• More options. As leases end and dealerships try to offload their high inventory, pre-owned EVs flood the market, giving you more options.

Cons of used EVs

• Reduced battery life. All batteries face reduced life the longer they are in use, and EV batteries are no exception. Older EVs have a diminished battery life compared to new ones.

• Fewer incentives. States and local jurisdictions offer tax credits and incentives when you buy an EV, but not always on used ones. You’ll likely qualify for tax breaks with a newer EV than with an old one.

• Old tech. Like gas cars, older EVs don’t have as many updated features and technology as new cars. You might have to deal with older software that’s slow or outdated. In some cases, it might be missing key features you’re used to having. 

The bottom line

Buying an electric car can be more expensive initially, especially if you add charging elements to your home. But over time, you may spend more on a gas car than an EV, depending on your car type and how long you keep it for.

Before you buy an EV, do your research to make sure you find the one that’s not only in line with your budget right now, but has the features you want out of a car that’ll last you a while. Not all EVs are right for everyone, so make sure you find the right one for you.