Vincentric, a provider of automotive cost of ownership data, recently released an updated Electric Vehicle (EV) Cost of Ownership Analysis for 2025.

The company found that 24 of 54 (44%) EVs studied had a lower total cost of ownership over five years than a similarly equipped gasoline alternative. This shows a slight decrease from the 2024 study in which 49% of the EVs studied had lower ownership costs.

The Vincentric study analyzed eight cost factors comprising a vehicle’s ownership cost: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs. The biggest advantage for EVs was their fuel costs.

The electricity cost for all 54 EVs was lower than gasoline for their Internal Combustion Engine (ICE) alternatives, with average fuel cost savings of just over $7,500. Maintenance costs were another strength, with 43 of 54 EVs costing less to maintain over the five-year timeframe of the study. 

Electric Vehicles Face Mounting Depreciation Challenges

The most significant disadvantage of EVs continues to be depreciation, mainly because 44 of the 54 EVs studied had a higher purchase price than their gas-powered counterpart.

Only 9% of EVs analyzed had lower depreciation costs than their ICE alternative, which is down significantly from last year’s study in which 24% had lower depreciation.

Another contributing factor to this decline was that only 5 of 54 EVs qualified for the $7,500 federal point-of-sales rebate for purchasing electric vehicles. The strict qualification criteria for this rebate have been an ongoing challenge for EVs. While only five qualified this year, the 2024 study had even less, with only three qualifying EVs.

Despite Higher Upfront Costs, EVs Deliver Environmental and Long-Term Value

In addition to the financial cost of ownership, the analysis also examined the environmental cost of ownership of the vehicles studied to compare the environmental impact of driving an ICE vehicle versus an EV. 

Even though EVs create greenhouse gas emissions due to electricity production, the study found that, on average, over five years, EVs reduce CO2 emissions by over 4.4 metric tons, NOX emissions by over 2.3 metric tons, and VOC emissions by over 1.7 metric tons compared to their ICE alternatives. 

“The higher purchase price of EVs can be a major factor in consumers’ hesitance to switch to electric,” said Vincentric President David Wurster. “While our latest analysis of EVs in America has shown some decreases in cost-effectiveness from last year, the 2025 study still found that 44% of EVs cost less to own over five years than a comparable gas vehicle. This means that, despite the oftentimes higher upfront cost, a wide variety of EVs can still save buyers money over another gasoline-powered car.”

This Vincentric analysis assumed that all vehicles were driven 15,000 miles per year over the next five years. Results were based on federal point-of-sales rebate qualifications and vehicle pricing as of March 11, 2025.