Everyone knows that electric cars are better for the environment than gas-powered autos. But did you know that they can also be the best move for your wallet?

The gap between the cost of a gas-powered car versus an electric car has been closing over the last few years. In 2023, the average new electric vehicle (EV) cost less than $3,000 more than the average new gas-powered vehicle. And the EV market is growing rapidly, so that gap is expected to keep shrinking.

Meanwhile, many hybrid cars, which combine a gasoline engine and a battery-powered electric motor, already cost less than their gas-powered counterparts. And unlike fully electric vehicles, most hybrids do not need to be plugged in — though some special hybrids, known as plug-in hybrid vehicles, can be.

On the go? Now you only need a smartphone to access the newest travel tech.

But there are other ways that an EV or hybrid can help you save, from fuel prices to repair costs to tax incentives. “We saw potential savings everywhere,” David Reichmuth, a senior engineer for the Union for Concerned Scientists told the New York Times. Here are a few savings to consider when you’re weighing the cost of a new EV.

1.    Electricity is cheaper than gasoline

Skipping a trip to the pump will almost always save you money. Hybrids can help get you an average of 40-60 miles per gallon, and electrics can save you even more. Recent studies have found that on average, the cost to fuel an electric car (by recharging it) is less than half the cost of powering a vehicle that runs on gas. And these savings benefit drivers all across the country. Every EV model in every state is cheaper to power with electricity than a “traditional” car costs to power with gasoline.

Charging your new electric (or plug-in hybrid) car at home will raise your electricity bill, but you can look for ways to lessen the load. For example, many electric companies offer lower electricity rates for charging during off-peak hours.

Looking for other ways to tighten the belt? Here are 10 ways you can save on groceries.

2.   No oil changes for EVs

On average, engine oil changes cost gas-powered car owners $120 per year — not to mention the hours waiting for the service, or the mess of trying to do it yourself. But without a combustion engine, fully electric vehicles don’t need oil changes. (Sorry hybrids — you still need regular oil changes!)

3.   Fewer overall repairs

It’s not just oil changes: Because fully electric cars have fewer fluids and moving parts, they are generally lower maintenance, which means lower repair costs. Overall, Consumer Reports found that EVs cost about half as much to maintain over the course of a vehicle’s lifetime.

4.  Fewer brake jobs

Most people know that EVs are battery powered, but not everyone is familiar with their innovation in modern braking systems. Unlike traditional hydraulic brakes — which use friction to turn your car’s forward-moving kinetic energy into heat rather than motion — EVs generally use “regenerative brakes” to capture that energy when your car slows down or stops.

Because many EVs and hybrids use regenerative braking, they need significantly fewer brake jobs in their lifespans. On average, manufacturers recommend that drivers get their brake pads replaced every 50,000 miles — which costs anywhere from $200 to $600 every time. With regenerative brakes, pads can last as long as 100,000 miles.

5.   Regenerative braking saves on fuel — no matter which type you use

EV’s regenerative braking captures energy most of us didn’t realize we were wasting — When captured, the kinetic energy is converted into electrical energy and stored in the car’s batteries for future use. And this tech benefits hybrids too: they capture up to 90 percent of the energy normally lost during braking. Because regenerative braking can keep your car battery charged longer, you can extend your car’s driving range and save on fuel!

Is the environment your post-retirement passion? Or a new hobby? Here are some tips to finding it.

4.  Free charging

Unlike gas, which is always a pain in the wallet, there are a lot of ways to score free charging for your EV or plug-in hybrid:

• Free charging plans: Many manufacturers offer limited free charging plans when you buy a new car.
• While you shop: You’ve likely seen charging stations outside of major chain stores like Macy’s or Kohl’s. These companies offer free charging in their parking lots while you shop.
• At a hotel: Hotels like the Radisson allow their guests to charge overnight.
• At a national park: There are more than 140 chargers available across 23 parks and campgrounds nationwide, and the National Park System offers a map of all of them.
• Ad-supported charging: Just like streaming services, if you’re willing to watch an ad, Volta charging stations offer 30 minutes of free charging.

Planning your spending? Here are some tips for managing your money in retirement.

5.   Rebates and tax breaks

The federal government also offers incentives for investing in the planet. You can get a $7,500 tax credit if you buy or lease certain electric or plug-in hybrid vehicles. And if you invest in a charging station in your home, you can get an additional $1,000.

How Can Medicare Help?

Choosing a new car and a new healthcare plan are big decisions. At ClearMatch, we help match you to the policy that meets your unique needs and priorities. To compare plans in your area and find the policy that’s right for you, give us a call or check out our Find a Plan tool.

Additional Resources:

• Consumer Reports: Electric Vehicle Ownership Cost Final Report
• NRDC: Electric vs. Gas Cars
• Forbes: Electrics Cars Cost Almost Half as much To Drive
• Energy Innovation: How Much Does it Cost to Fill Up an Electric Vehicle vs. A Gas-Powered Car?
• New York Times: Electric Cars Are Better for the Planet — And Often Your Budget Too
• Kelley Blue Book: Hybrids vs. Plug-In Hybrids: What Are the Differences in 2024?
• US Department of Energy: Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After