The electric Tesla Model Y and and gas-powered Audi Q5 Premium, both with the lowest level of trim, are similar compact luxury SUVs, with 2023 base pricing at $51,380 and $45,795, respectively, according to car review website Edmunds.
Model Ys are eligible for a federal EV tax credit worth $7,500, at least until Dec. 31, 2023. But that's undercut by the cost and installation of a Level 2 charger, which can cost thousands of dollars. Expect to pay around $2,000 as a "reasonable ballpark figure," according to Kelley Blue Book.
After credits and other costs, the upfront price of Tesla's Model Y is only about $100 more than the Audi Q5.
But the real savings for an EV kick in after your purchase, given the lower annual fuel and maintenance costs:
That works out to an estimated $11,525 in cost savings for the Model Y over five years.
Both the EV Leaf and ICE Sentra are affordable, compact sedans made by the same company. At $29,135, the 2023 Leaf has a higher sticker price than the 2023 Sentra, which goes for $21,295, according to Edmunds.
Unfortunately, the Leaf no longer qualifies for the $7,500 federal tax credit due to recently updated manufacturing standards. Throw in a Level 2 charger and the Leaf is nearly $10,000 more than its ICE counterpart.
Even so, the Leaf has lower operating costs:
That works out to $843 in savings per year for Leaf owners. However, it would take nearly 12 years to make up the $10,000 difference in upfront costs when compared with the Sentra. This really underscores how the federal tax credit can help tip the balance in favor of EVs being a better bargain.
The performance version of the electric Tesla Model 3 and the gas-powered BMW 330i are both powerful luxury sport sedans, with 2023 models costing $54,630 and $44,795, respectively, according to Edmunds.
A Level 2 charger will add another $2,000 to the upfront costs of a Model 3. However, Model 3 owners can still qualify for a full $7,500 tax credit, at least until Dec. 31. 2023. Overall, that works out to an upfront cost of $49,130 — $4,335 more than the 330i.
Then there are annual operating costs:
With annual cost savings of $1,675, Model 3 owners would cover the upfront price difference in just over two and a half years.
Whether an EV is worth buying will depend on other factors, too. With Level 2 chargers, some homes might need upgraded electrical panels that can add hundreds of dollars in extra installation costs. But then again, you could get by with a cheaper Level 1 charger if you only drive about 20 miles each day.
Another factor is that electricity rates vary between states, so ongoing charging costs will vary. Availability of charging stations near where you live is another consideration, in terms of convenience. For maximum flexibility, you could buy a hybrid EV that also runs on gas.
Lastly, sustainability and low carbon emissions might be more of a priority than overall cost.
Whatever you buy, pick a vehicle that best fits your needs.
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