AAA: EVs Come With A $600 Annual Premium
[Jan. 27, 2020]
In a recent survey spanning 1,090 BEV owners, the Automobile Association of America (AAA) calculated that the annual ownership of a compact EV is about $600 higher than that of owning a comparable compact ICE vehicle.
AAA compiled data using 2019 model year Chevrolet Bolts, Hyundai Ioniq Electrics, Kia Soul EVs, Nissan Leafs, and VW eGolfs. AAA then used 2019 model years of the Chevrolet Cruze, Honda Civic, Hyundai Elantra, Nissan Sentra, and Toyota Corolla to calculate price differentials.
The vehicles selected for the survey are base models, although optional equipment like an automatic transmission, air conditioning, power steering, antilock brakes, and cruise control are added. Next, factors like vehicle depreciation, financing, fuel, insurance, maintenance and repairs, plus licensing, registration, and taxes are worked into the equation.
To achieve its fuel cost estimate, AAA assumed an average of 15,000 miles driven per year over the course of five years. The problem is, per AAA’s 2019 Your Driving Costs guidelines, the company utilized a national gas price average of $2.679 per gallon. While this average is undoubtedly accurate, averages never represent each individual’s situation. In fact, when talking about a $600 difference, this alone can greatly impact the survey’s results.
Let's crunch numbers. As of this writing, AAA states California’s gas price average as $3.528 per gallon. Meanwhile, the average price per gallon in Michigan, which recently somewhat relaxed its vehicle sales and service laws, is $2.403, and the Lone Star State averages even lower at $2.199 per gallon.
As such, the amount spent on gasoline in order to drive 15,000 miles while averaging 32 mpg in an ICE vehicle (the number AAA used for its EV assessment) rings up at $1,255.78 using AAA’s stated national gas price average. In California, where more than 45% of EVs are sold in the U.S., that number is $1,653.75. In Michigan, expect to pay $1,126.41. Live in Texas? You’ll only spend $1,030.78.
Regardless, AAA’s calculation pinned the cost of electricity far lower: “The electricity required to drive 15,000 miles per year in a compact electric vehicle costs an average of $546….”
Drop the mpg average from 32 to 25 (which is plausible if the majority of driving is city vs. freeway) and the gasoline numbers come out as $1,607.40 annually using AAA’s stated national average, $2,116.80 in California, $1,441.80 in Michigan, and $1,319.40 in Texas.
And that’s not even beginning to calculate the variation in electricity costs in America.
In other words, chances are that AAA’s $600 EV premium calculation will probably not be completely accurate for you. Or put another way, your mileage may vary.
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