How Affordable Electric Vehicles in 2026 Help Drivers Save More Money Than Ever Before
By Will Anderson, EV policy advocate with Public Citizen’s Climate Program
In our car-dependent country, one major aspect where we can feel the daily hit to our wallet is behind the wheel. Americans on average drive more than 13,400 miles per year, or roughly 35 miles per day, spending close to an hour a day driving, often more in congested regions. The average vehicle on U.S. roads is now over 12.5 years old, reflecting how long many households are forced to keep cars running due to rising costs.
While car ownership is often marketed as “freedom,” a car can be a costly burden, requiring substantial spending on fuel, maintenance, repairs, insurance, and other liabilities, as well as harming public health and the environment. Greater investments in public transportation and walkable, bikeable communities would meaningfully improve our physical, mental, and financial health. Those kinds of benefits to our individual health also greatly improve our public health and air quality while helping mitigate climate change and pollution. In the meantime, in a country built around cars, electric vehicles (EVs) are increasingly helping drivers lower total ownership costs compared to gas vehicles. Let’s assess how both new and used EVs are more affordable than ever in 2026.
The Benefits of Charging Up vs. Gassing Up
You can’t pump gas at home, but you can charge an EV at home—while you sleep! With the average U.S. gas price around $2.86 per gallon, filling a 12-gallon tank costs about $34.32, providing roughly 360 miles of range in a vehicle averaging 30 miles per gallon, or about 10 cents per mile in fuel costs. In contrast, EV efficiency and range is generally measured in miles per kilowatt-hour (mi/kWh). In late 2025, American households paid an average of 17.98 cents per kWh, often less during off-peak hours. A conservative efficiency estimate for an average EV is 3 miles per kWh, resulting in a fueling cost of roughly 6 cents per mile—about 40% less than gasoline. Over a year of average driving, this can translate to approximately $470–$540 in fuel savings when you switch to an EV, depending on electricity prices and driving habits.
A standard 120-volt household outlet (Level 1 charging) can add 30–60 miles of range overnight, which is sufficient for most daily commutes. For faster home charging, federal, state, and utility incentives can reduce 240-volt charger installation costs. A federal EV charger tax credit (Section 30C) remains available for chargers installed and placed in service by June 30, 2026, covering 30% of costs up to $1,000. While there’s still room for improvement when it comes to lowering cost and increasing charging access, for drivers without home charging, many businesses and municipalities offer free or low-cost public charging, with fast-charging options expanding nationwide.
EVs Save on Maintenance and Repair Costs
Gas vehicles typically cost $1,200–$1,450 per year in maintenance and repair, according to AAA. EVs eliminate oil changes entirely—saving $150–$300 per year—and rely on far fewer moving parts, so fewer things can break or go wrong. Regenerative braking dramatically extends brake life, often doubling or tripling replacement intervals, further reducing maintenance costs. Consumer Reports finds EV owners spend about 40–50% less on maintenance and repairs over the life of the vehicle compared to gas cars. While some EVs have more durable tires that can handle the EV’s increased torque and instant power, which are priced higher than non-EV tires, the lifetime of a tire tread is largely dependent on your driving behavior.
Purchasing Used, New, and Leasing
In 2025, the average new vehicle price exceeded $50,000, and only about 25% of U.S. vehicle buyers purchase new, while roughly 75% buy used. Used EVs represent some of the best values in the auto market, with many models selling for 30–50% below their original MSRP due to early depreciation. Industry forecasts suggest hundreds of thousands of off-lease EVs will enter the used market annually through the mid-2020s, expanding affordable options. Most EV manufacturers provide battery warranties of at least 8 years or 100,000 miles, with longer coverage in some states. Real-world data show that many EV batteries retain 80–90% of original capacity at 100,000 miles or more, supporting strong long-term value.
For drivers who are considering purchasing new EVs or leasing them, despite the federal government’s $7,500 EV tax credit being cancelled by the Trump Administration, some vehicle manufacturers are discounting their EV’s MSRP or lowering leasing prices to offset the repeal of the federal tax credit. And at least 15 states still have EV tax credits, rebates and incentives of their own (these states are CA, CO, OR, WA, CT, DE, IL, ME, MD, MA, NJ, NM, NY, RI, and VT). Beyond state incentives, your local utility may also offer rebates and incentives for either EVs or home charging equipment, so, be sure to check what options are available to you where you live.
Insurance
On average, insurance for EVs can cost more than comparable gas vehicles due to higher upfront prices and specialized repair needs, often 20–40% higher depending on the year, model and location. However, drivers can reduce costs by shopping rates, bundling policies, using usage-based insurance, and selecting EVs with strong safety records. Some insurers now offer significant discounts tied to advanced safety or driver-assistance technologies, narrowing or eliminating the premium gap. As EV recycling and parts reuse become more prevalent, repair costs are expected to go down. Policies that support individuals’ “right to repair” will also increase access to independent EV repair shops which in turn will reduce repair costs.
The Bottom Line
When all is said and done, the most affordable car is the one you don’t need to drive, and the greenest car is the one that’s never made. But if you need a vehicle to earn a living or commute where there aren’t viable transit alternatives, EVs can be more affordable, more reliable, more environmentally friendly, and more enjoyable to drive than gas vehicles. For buyers looking for used vehicles under $25,000 that have less than 50,000 miles on the odometer, a quick search on various auto buyer websites shows many EV options that would suit most drivers’ daily commute. There are over 100 different EV models available used in the U.S. If you broaden your search to vehicles with more than 50k miles, you are likely to find even more affordable used options that are still under factory warranty, but as a reminder when shopping for any vehicle, review the vehicle’s accident history, service record, recall history, and battery health.
Whatever EV you might choose, be sure to double check costs, incentives, and vehicle history before signing the papers and grabbing the keys. Not only can you save money by switching to an EV, you can help make the air we all breathe cleaner. Drive safe and ideally, drive less!
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