You’ve probably heard the environmental argument for getting an electric car before, that buying an electric car will reduce your carbon footprint and help save the planet. That is a good reason on its own but if you need more there’s also a key economic angle to think about as well which we’ll explain within this article. 

Initial Cost

Let’s start with the one big negative of electric cars that you’re probably familiar with: they cost more than regular cars by a fairly significant margin. On average an electric car can cost from $5000-$10000 more than the equivalent gas powered model depending on the manufacturer and the quality of the electric motor. 

This gap has been declining over the  years and may eventually be negligible but as of right now that’s what you have to work with. 

Tax Rebates

There are however ways to mitigate these increased upfront costs with the help of federal tax rebates. In Canada depending on the make and model of the car you can claim tax incentives worth up to $5000 which can take the brunt of those extra costs for you. In most provinces you can also add in provincial tax credit as well, however currently in Ontario there is no such Incentive plan, though that may change in the future. 

Fuel Costs

This is the big one, Electric cars do not use fuel and therefore you do not have to pay for fuel which will end up saving you tons in the long run. While Electric cars are not completely free to run as you’ll likely need to charge at your house, increasing your home electricity bill, that increased fee amounts to roughly 30% of what you’d be paying to keep the equivalent gas vehicle on the road. 

Saving 70% on fuel every single month starts to build up fast, especially with gas prices climbing ever upward in recent years. 

Maintenance Costs

Despite what you might think, Electric motors are actually much simpler than gas power engines. They have much less moving parts and require much less changing of fluids or components like oil and spark plugs. This means that you’ll also be saving on maintenance costs. You won’t see as significant a decrease as from the fuel side of the equation but still a decrease nonetheless. 

Surprise Benefits

There are some other factors as well that may not have a direct financial impact but will still contribute in some way to your economic situation, for example in Ontario having an EV allows you to use the HOV lane of the highway even if you’re driving solo, and public charging stations often act as both free parking for you and free charging as well.