EV prices have dropped significantly, but are they actually cheaper to own than a petrol car? The answer in 2026 is: it depends on how you run the numbers.
Let's do a realistic 5-year comparison using two similar vehicles.
The Matchup
Electric: 2026 Hyundai Ioniq 5 Standard Range — $38,500 MSRP
Petrol: 2026 Toyota RAV4 LE — $31,000 MSRP
Both are mid-size crossovers, the most popular vehicle type in America.
Purchase Price
EV: Hyundai Ioniq 5
- MSRP: $38,500
- Federal EV tax credit: -$7,500
- Net price: $31,000
Petrol: Toyota RAV4
- MSRP: $31,000
- Net price: $31,000
With the federal tax credit, the upfront cost is essentially identical in 2026 for many popular EVs. This wasn't true even 2 years ago.
Fuel/Charging Costs (5 Years, 12,000 miles/year)
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EV Charging
- Average consumption: 3.5 miles/kWh
- Total kWh needed: 17,143/year
- Average electricity cost: $0.14/kWh (home charging)
- Annual cost: $2,400
- 5-year total: $12,000
Petrol Fuel
- Average MPG: 30
- Gallons needed: 400/year
- Average gas price: $3.50/gallon
- Annual cost: $1,400
- 5-year total: $7,000
Wait — petrol is cheaper? In many areas, yes. Electricity rates vary wildly. In California ($0.25/kWh), EV charging costs more than gas. In Washington state ($0.10/kWh), it's half the cost. Home solar changes the equation entirely.
Advantage: Depends on your electricity rate
Maintenance (5 Years)
EV Maintenance
- No oil changes
- No transmission service
- Brake pads last 2-3× longer (regenerative braking)
- Tire rotation (EVs are heavier, wear tires faster)
- Cabin air filter
- Estimated 5-year total: $2,000–$3,000
Petrol Maintenance
- Oil changes: 20 changes × $60 = $1,200
- Transmission fluid: $200
- Brake pads + rotors: $800
- Air filters: $200
- Spark plugs: $200
- Tire rotation + other: $500
- Estimated 5-year total: $3,100–$4,000
Advantage: EV by ~$1,000–$1,500
Insurance (5 Years)
EVs cost 15%–25% more to insure due to:
- Higher repair costs (battery damage, specialized parts)
- Higher replacement value
- Fewer qualified repair shops
EV Insurance
- Average: $1,800/year
- 5-year total: $9,000
Petrol Insurance
- Average: $1,500/year
- 5-year total: $7,500
Advantage: Petrol by ~$1,500
Depreciation (5 Years)
This is the biggest cost of car ownership, and where the comparison gets interesting.
EV Depreciation
- Year 1: 25% (driven by tech obsolescence fears)
- Years 2–5: 12%/year
- 5-year retained value: ~45% ($17,325)
- Depreciation cost: $13,675 (after tax credit)
Petrol Depreciation
- Year 1: 20%
- Years 2–5: 10%/year
- 5-year retained value: ~52% ($16,120)
- Depreciation cost: $14,880
Advantage: EV by ~$1,200 (thanks to the tax credit lowering the effective purchase price)
The 5-Year Total Cost Comparison
| Cost Category | EV (Ioniq 5) | Petrol (RAV4) |
|---|---|---|
| Net Purchase Price | $31,000 | $31,000 |
| Fuel/Charging | $12,000 | $7,000 |
| Maintenance | $2,500 | $3,500 |
| Insurance | $9,000 | $7,500 |
| Depreciation | $13,675 | $14,880 |
| Total 5-Year Cost | $37,175 | $32,880 |
In this realistic scenario, the petrol car is ~$4,300 cheaper over 5 years. The EV's fuel cost disadvantage (at average electricity rates) and higher insurance outweigh the maintenance and depreciation savings.
When the EV Wins
The math flips in your favor if:
- Your electricity rate is below $0.10/kWh (or you have solar)
- You drive 15,000+ miles/year (fuel savings scale up)
- Your state offers additional EV incentives ($2,000–$5,000 in some states)
- Gas prices rise above $4/gallon
With cheap electricity + high miles, an EV can save $3,000–$5,000 over 5 years instead.
The Bottom Line
There is no universal answer. The "EVs are cheaper" claim and the "petrol is cheaper" claim are both true — depending on where you live, how much you drive, and your electricity costs.
Run the math for your specific situation using our Total Cost of Ownership Calculator. Compare loan options with our Auto Loan Calculator, check the depreciation curve with our Depreciation Calculator, and make sure you can actually afford the car with our Car Affordability Calculator.
The most expensive car is the one you buy without running the numbers.