According to the latest AAA EV Consumer Survey conducted in March 2025, consumer interest in fully electric vehicles has reached its lowest level since 2019, with only 16 percent of U.S. adults reporting they would likely consider one for their next purchase. This decline is primarily attributed to concerns over initial cost and battery repair. Millennials show the most interest. Yet, across all age groups, relatively few consumers have actually made the leap to electric vehicles.
Preconceived notions about costs, insufficient vehicle range or lack of places to charge have likely kept many Americans on the fence about buying an electric car. AAA believes that, like other new vehicle technologies, experience could be the key to helping ease or even eliminate commonly held concerns about electric vehicles. So what is the true cost of EV ownership, and what should car buyers consider when deciding whether to purchase an EV?
Upfront Electric Car Prices
If you are considering entering the electric car market for the first time, you may experience initial sticker shock at the cost of electric cars. According to research by Kelley Blue Book, the average price of a new electric car was $58,124 in September 2025. Electric car prices are down from an average cost of more than $65,000 in 2022, but still higher than the average of $50,080 across all new car purchases in September 2025.
September 2025 was the final month for claiming the federal tax incentive for EV purchases. Unsurprisingly, with the expiry of the tax credit, Edmunds data revealed that sales spiked during September, but cooled significantly in October as the average transaction price of a new EV climbed to $65,021 from $60,167 the previous month.
Of course, MSRPs and federal tax incentives don't tell the whole story. Vehicle prices can change dramatically depending on demand, model year closeouts, and even the day of the week you choose to buy. There may also be special state, local, or dealer incentives, so it pays to shop around. However, the purchase price isn't the only cost associated with owning an EV
EV Charging Prices
Electric car owners can see incredible savings compared to gas-powered vehicles when looking at the cost per mile. As AAA's latest Your Driving Costs report notes, a gas-powered vehicle owner will spend an average of 13.00 cents per mile on fuel. The cost for an electric vehicle owner remains significantly lower, though the gap has narrowed due to falling gas prices and slightly rising electricity costs.
While EV owners still see fuel savings, the overall 2025 AAA Your Driving Costs Report indicates that, due to higher depreciation and finance charges, the EV segment is now the most expensive overall vehicle type to own.
In addition, gas prices can swing wildly depending on market conditions. While electricity costs also fluctuate, these swings tend to be much smaller, especially for the average consumer on a stabilized rate plan. You can also significantly reduce your charging costs by charging during off-peak hours if your home electric plan offers a discount during those times.
At-Home Charging Costs
Charging your EV at home is almost always cheaper than charging it at a public charging station, but a home charging station is one of the electric car expenses you might not have considered. According to Angi, the average cost of an EV charging station nationwide is $967, but this can range from about $300 to more than $2,500.
Things to consider include:
- Level 1 charging: Level 1 charging requires a standard 120v outlet, so if you have one conveniently located where you park your car, you may not need anything extra. If you do need a new outlet installed, it should cost around $300-$600. However, Level 1 charging is relatively slow. If you charge the car for eight hours, you can only expect to get about 35-40 miles of drive time.
- Level 2 charging: Level 2 charging requires a 240v outlet, similar to a dryer or water heater outlet. It typically costs at least $700 for a basic installation, but it will allow you to charge your car in less than half the time. After charging for eight hours, you can expect a driving range of around 180 miles.
- Upgrades: Many homeowners decide to install a full charging station rather than just an electrical outlet. Upgrades such as a touch screen, Wi-Fi capabilities and overheating protection can easily add hundreds of dollars to the cost (likely $500 or more for everything).
- Permits: Depending on your state and city and whether you install a Level 1 or Level 2 charger, you may need to get permits, which average $100 - $200.
- Electrical system updates: If your existing home electrical system can't support the load of an EV charger, you may need a new electrical panel or even new wiring, which could add hundreds or even thousands of dollars.
Range Anxiety Can Lead to Increased Charge Costs
In the EV Consumer Survey mentioned above, 95 percent of EV owners have never run out of charge while driving. Consequently, 77 percent of those who were initially concerned about insufficient range reported being less concerned or no longer concerned about range after buying an electric vehicle. Still, range anxiety may be a factor holding back interested consumers from switching to an EV. The 2025 AAA survey confirms this, showing that 55 percent of those unlikely to buy an EV are concerned about running out of charge while driving.
Range anxiety can also drive up EV costs for some owners. If you are worried about range, you might stop at public chargers more often than necessary just to top off your charge. A possible solution is to purchase a hybrid car, which can give you peace of mind knowing that gas is always available.
EV Service and Maintenance Prices
Electric vehicles do not require as much maintenance as gas-powered ones. Since they don't have an engine, they don't need oil changes, air filter replacements, or other common maintenance items. However, EVs do still need:
- Brake fluid replacement: Every two to five years, just like gas-powered vehicles, though the brakes themselves tend to last longer thanks to regenerative braking.
- Regular tire rotations: Typically at 6,250 to 10,000 miles, depending on the manufacturer's recommendations, though some EV owners report that the weight of the battery causes somewhat faster tire wear.
- Routine items: Such as wiper blades.
In general, though, EV maintenance costs are significantly lower than those of gas-powered cars.
One way to keep your maintenance costs down is to take care of your battery. In addition to standard battery maintenance, such as starting the car regularly, check your owner's manual for any special features specific to your electric vehicle. Remember that, unlike a gasoline car, your EV's battery powers the entire car, so it must remain in top shape.
EV Battery Replacement Prices
Even with the best possible maintenance, batteries are one of the biggest costs of electric vehicles. This concern is significant for potential buyers: the 2025 AAA survey found that high battery repair costs are the #1 barrier cited by 62 percent of those unlikely to buy an EV. New batteries can cost anywhere from $5,000 to $15,000, according to Consumer Reports.
In general, though, EV batteries are under warranty for eight to 10 years and 100,000 to 150,000 miles, depending on the manufacturer. Many drivers get 12 or more years of service from the original battery, especially in temperate climates. Fast charging is also harder on the battery than slow charging, although the difference is slight.
Sooner or later, though, the time may come to replace your EV battery, especially if you tend to keep the same car for many years. Like all batteries, the lithium-ion batteries used in electric vehicles slowly degrade over time.
Manufacturer warranties typically cover degradation below a certain threshold during the warranty period; however, once the warranty expires, you will be responsible for any necessary replacement. Of course, technology costs tend to go down over time, so if you buy a new EV, it's likely that it will be significantly cheaper by the time you are in the market for a new battery.
Registration, Title and Tax Prices
It's impossible to provide an overall average cost for EV registration, title and tax pricing because things vary so much between jurisdictions. For example, some states and municipalities offer incentives for EVs, while others charge additional fees. Some states charge an impact fee the first time you register a vehicle in that state, whether or not it's electric. Be sure to check with your state and local authorities for the most accurate pricing in your area.
EV Insurance Coverage Prices
Like gas-powered vehicles, insurance prices on EVs vary widely according to a lot of different factors. These include, but are not limited to:
- Age of the primary driver
- Type of vehicle (car, truck, SUV, etc.)
- Type and amount of insurance coverage
- Value of the vehicle
In general, EVs are slightly more expensive to insure than gas-powered vehicles. This is largely due to the cost of parts, as well as the need for specially trained technicians. As EVs become more common, insurance prices could come down.
Save Additional Money on EV Costs with AAA
So, how much money does an electric car save? This ultimately depends on various factors, such as which EV you choose, any applicable incentives, and even how much insurance you select. But there are several EV perks with your AAA membership that can help you out.
Take advantage of the AAA used EV buyers' guide, our legendary roadside assistance program (now with mobile charging in select markets), and our TripTiks and TourBooks (which now highlight charging stations).
Is an electric car right for you? Ultimately, that answer is different for everyone. If you are considering an EV, it's best to go for a test drive. Ask the dealer lots of questions, and take enough time to carefully consider your decision.
FAQs About the True Cost of EV Ownership
The true cost of EV ownership can vary, but there are a few basics that are common to every EV owner.
Are There Discounts Available When Buying an EV?
While there is no longer a federal tax incentive, as of 2025, there are some state-based incentives. Examples include:
- Up to $7,500 for lower-income EV buyers through the California Air Resources Board
- $500 rebate for all Black Hills Energy (Colorado) customers who purchase a Level 2 charging station, plus up to $1,300 additional for lower-income customers
- $200 rebate for Orlando Utilities Commission (Florida) customers who purchase an EV, plus a $50 rebate for any customer who test drives an EV
- $4,000 rebate for Illinois residents who purchase an EV by June 30, 2026, from the Illinois Environmental Protection Agency
Incentives are always subject to change. Be sure to check for any programs that may apply to you when purchasing your electric vehicle.
Does it Cost More to Charge an EV in Cold Weather?
It costs more to charge an EV in extreme heat or cold, especially when the temperature dips below freezing. The driving range can decrease by more than 40 percent. This means the car will need more frequent charging, adding to the costs. However, drivers can reduce this impact by pre-cooling or pre-heating the vehicle to a comfortable inside temperature before unplugging the charger. This will reduce the HVAC load on the battery while driving since it will only have to maintain the existing temperature.
What Do EV Owners Really Think?
Would EV buyers make the purchase again? AAA's research says yes. Among electric vehicle owners, 71% of whom were first-time EV buyers:
- A stunning 96 percent say they would buy or lease another EV.
- 43 percent now drive more than they did in their gas-powered cars (an average of 39 additional miles each day).
- 78 percent also own a gas-powered car, but perform 87 percent of their driving in their EV.