AAA Says EVs Still Cost More Than Gas Cars Even At Today’s Pump Prices, And That Changes The Used-EV Math
AAA’s newest cost-to-own analysis delivers an inconvenient answer to a question used-car shoppers keep asking: does a high gas-price environment finally make an EV the cheaper car to own? According to AAA, no. Electric vehicles still cost more to operate than comparable gasoline and hybrid models, even with pump prices elevated well above $4 a gallon in many markets.
That finding cuts against the pitch that’s powered EV sales messaging for years: skip the gas station, save the money. AAA’s report, covered this week by Automotive News, says the ownership-cost gap between EVs and gas vehicles is narrowing, but it hasn’t closed. For someone cross-shopping a used EV against a gas-powered equivalent right now, the math still tilts toward the vehicle with a tailpipe.
What AAA Actually Measured
AAA’s cost-to-own figures look past the price at the pump and roll in the full ownership picture: fuel or electricity costs, depreciation, insurance, maintenance, and financing. That’s the honest way to compare two vehicles, because a cheaper fill-up doesn’t mean much if the car loses value faster or costs more to insure. According to Automotive News’ coverage of the report, EVs still land behind gas and hybrid vehicles on that combined total, even in a fuel-price environment that should theoretically favor them.
Depreciation is doing a lot of the damage here. Used EVs have been sliding in resale value faster than their gas counterparts, which erodes the fuel savings a shopper banks on when they do the math at the dealership. Insurance premiums on EVs also tend to run higher, reflecting pricier repair costs and specialized parts. Add those two line items to a sticker price that’s often still higher than a comparable gas trim, and the pump savings don’t close the distance.
Why The Gap Persists Despite Expensive Gas
The intuitive assumption is that $4-plus gas should be the great equalizer, pushing EV ownership costs below gas vehicles almost automatically. AAA’s numbers say that’s not how it plays out. Electricity isn’t free, charging infrastructure costs and home-charger installations add expenses many buyers don’t budget for, and the depreciation hit on used EVs has been steep enough to outweigh what owners save at the plug.
For a shopper looking at, say, a three-year-old electric SUV against a similarly equipped gas SUV, the gas model’s lower purchase price and slower depreciation curve can offset several years of fuel savings before the EV ever catches up. Over a five-year ownership window, that gap in total cost rarely disappears entirely, even with gas prices working in the EV’s favor.
What This Means For Today’s Used-EV Shopper
AAA’s report doesn’t say EVs are a bad buy. It says the simple pitch, gas is expensive so an EV saves you money, doesn’t hold up once depreciation, insurance, and maintenance are counted. Automotive News notes the gap is closing year over year, so this isn’t a permanent verdict. But for someone shopping today, the smarter move is running the full cost-to-own numbers on the specific used EV and gas model in question rather than assuming pump prices alone settle the argument.
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