Electric vs Fossil Car 2024: Cost Effectiveness and Long-term Benefits

Are electric cars still a luxury for wealthy city dwellers, or have they become a more accessible option for the average car buyer? In the past, electric cars may have been a sign of environmental awareness for a narrower group, but today, with a growing range, the situation is different. But what are the actual costs of electric cars compared to traditional fossil fuel cars?

Cost calculation for Electric car vs. Fossil car

• Higher purchase price for EVs: EVs tend to have a higher purchase price compared to equivalent fossil car models. This is also true when we look beyond the premium segment. The cheapest electric cars today cost around SEK 200,000, but they offer limited space and range. A more spacious electric car with a 45-mile range can cost up to SEK 415 000 after the environmental bonus, while an equivalent hybrid model is around SEK 285 000.

• Lower running costs for EVs: Electric motors are more efficient than internal combustion engines. An average electric car consumes about 1.5 kWh per mile, which costs between SEK 2.50 to 3 if you charge at home. However, fast charging can increase the cost to SEK 6-8 per mile. A comparable fossil fuel car has a fuel cost of about SEK 7-10 per mile. Electric car owners who can charge at home can therefore save up to SEK 7 per mile. But to compensate for the higher purchase price, an electric car needs to be driven for about 20 000 miles, which takes over ten years for an average driver.

• Service and Maintenance: Electric cars require less service and maintenance, which also contributes to lower costs over time. They do not need oil changes or timing belt replacements, and there is less wear and tear on the engine and transmission.

• Resale value: Electric cars have proven to be popular on thesecond-hand market. Exclusive models retain their value well, but even more standard models do not seem to follow the traditional rule of rapid depreciation. This may lead to an increased difference in resale value compared to fossil fuel cars, especially as the demand for used gasoline and diesel cars is expected to decrease.

• Private leasing: In the case of private leasing, the cost of an electric car and a hybrid model is comparable, although the hybrid car is cheaper to buy. This suggests that leasing companies expect an electric car to retain its value longer than a fossil car.

In conclusion, although EVs still have a higher purchase price, their lower operating and maintenance costs and better resale value can make them an economically advantageous option in the long term.