Gas vs Electric Car - True Costs In 2022

Summary

In a friendly competition between a gas-powered Toyota Prius and a Ford Mustang Mach-E electric vehicle, the hosts set out on a road trip to determine which car is cheaper to run. With the Prius being one of the most efficient hybrids and the Mach-E among the least efficient EVs, they analyze costs including purchase price, depreciation, insurance, maintenance, and fuel. Surprisingly, while EVs are cheaper to operate under normal conditions, the road trip revealed that charging on the go can be more expensive, leading to a total five-year cost of $35,000 for the Prius versus $59,000 for the Mach-E.

Takeaways

• 🚗 Gas prices in the US have reached a national average of $4.73, prompting more people to consider electric vehicles (EVs).
• 🔋 The comparison features a 2016 Toyota Prius (a hybrid) and a Ford Mustang Mach-E (an electric vehicle), highlighting the differences in efficiency and costs.
• 💰 The initial purchase price for the Prius was approximately $26,000, while the Mach-E cost around $68,600 before rebates.
• 📉 Depreciation over five years is expected to be about $16,000 for the Prius and over $42,000 for the Mach-E, favoring the hybrid.
• ⚖️ Insurance costs are generally higher for EVs; the Mach-E averages about $1,784 per year compared to $1,500 for the Prius.
• 🔧 Maintenance for the EV is significantly lower due to fewer moving parts, with estimates suggesting costs might be half compared to traditional vehicles.
• ⛽ Fuel costs for the Prius were about $39 for a 307-mile trip, while the Mach-E cost approximately $40.21 due to higher charging rates on the road.
• 🌄 EVs struggle with efficiency when driving in mountainous areas, which affects their overall range.
• 📊 Over a five-year period, the total cost to operate the Prius is about $35,000, whereas the Mach-E's total cost is estimated at $59,000.
• 📈 For day-to-day running costs, charging at home makes EVs cheaper, especially compared to traditional gas-powered vehicles with lower fuel economy.

Q & A

What prompted the comparison between electric and gas cars in the video?

The rising gas prices in the U.S., which hit a national average of $4.73 in June 2022, prompted many people to consider electric vehicles as a cheaper alternative.

What vehicles were compared in the road trip competition?

The comparison was between a 2016 Toyota Prius (gas hybrid) and a Ford Mustang Mach-E (electric).

What were the purchase prices of the Toyota Prius and Ford Mustang Mach-E?

The Toyota Prius was purchased for $26,000, while the Ford Mustang Mach-E had an initial price of approximately $68,600, reduced to about $58,250 after federal and state rebates.

How does depreciation affect the value of both vehicles after five years?

After five years, the Toyota Prius is expected to be worth about $10,000, while the Ford Mustang Mach-E is estimated to be worth around $20,000, reflecting a depreciation of approximately 38% for both.

What were the average fuel efficiencies of the two cars during the trip?

The Prius averaged 45 miles per gallon, while the Mach-E had a significant drop in efficiency, averaging only 0.9 miles per kilowatt hour in hilly conditions.

How much did insurance cost for each vehicle over a five-year period?

Over five years, the insurance cost for the Prius is estimated to be $7,500, while the Mach-E's insurance is approximately $8,920.

What were the maintenance costs for both vehicles during the trip?

The Prius incurred about $700 in maintenance costs over five years, whereas the Mach-E, being almost new, had not yet incurred any maintenance expenses.

How did fuel costs compare for the two cars during the trip?

During the trip, the Prius used 6.84 gallons of gas at $6 per gallon, costing around $39, while the Mach-E spent about $40.21 on electricity, using 143 kilowatt-hours at an average of 31 cents per kilowatt hour.

What are the total five-year costs for both vehicles?

The total five-year cost for the Prius is approximately $35,000, while the Mach-E's total cost is about $59,000, making the Prius the more economical choice overall.

What factors contribute to the higher costs of the Mach-E compared to the Prius?

The higher costs of the Mach-E compared to the Prius are attributed to its higher purchase price, greater depreciation, and the increased costs associated with charging on the road versus charging at home.