EV, hybrid or gas car? We know which one has the lowest total cost of ownership – November 2025

Author/Source: Sean O’Kane / CNET See the full link here

Takeaway

This article examines the total cost of ownership for electric vehicles, hybrids, and traditional gasoline cars over a five-year period. It reveals that while electric cars often have a higher initial purchase price, their lower running costs for fuel, maintenance, and repairs typically make them the most economical choice in the long run.

Technical Subject Understandability

Beginner

Analogy/Comparison

Choosing a car based on total cost of ownership is like deciding which type of fruit tree to plant in your garden. One might be more expensive to buy, but if it requires less water, fertilizer, and pest control over the years, and produces more fruit, it could be the more economical choice in the long run than a cheaper tree that demands constant care.

Why It Matters

Understanding total cost of ownership is crucial because it allows consumers to make financially sound decisions when buying a car, looking beyond just the upfront price. For instance, a family might initially dismiss an electric vehicle due to its higher sticker price, but learning about the substantial savings on fuel and maintenance over several years could lead them to choose an EV, ultimately saving them a significant amount of money and reducing their environmental impact.

Related Terms

Total Cost of Ownership (TCO): The overall cost of an asset over its lifetime, including purchase price, operating costs, maintenance, and depreciation.
Jargon Conversion: This is the full amount of money you’ll spend on something from when you buy it until you get rid of it, not just the upfront price. It includes things like fuel, repairs, and how much its value drops over time.
Electric Vehicles (EVs): Cars powered entirely by an electric motor and battery.
Jargon Conversion: These are cars that run only on electricity, without using any gasoline.
Hybrid Electric Vehicles (HEVs): Cars that combine a gasoline engine with an electric motor and battery.
Jargon Conversion: These cars use both a gasoline engine and an electric motor to power them, switching between the two or using both at once.
Gasoline Vehicles: Cars powered solely by an internal combustion engine that runs on gasoline.
Jargon Conversion: These are traditional cars that only use a gasoline engine to move.
Depreciation: The decrease in value of an asset over time.
Jargon Conversion: This is how much less money something is worth as it gets older or is used more. For cars, it’s the difference between what you paid for it and what you can sell it for later.
Incentives: Financial benefits or discounts offered by governments or manufacturers to encourage the purchase of certain goods, like tax credits for EVs.
Jargon Conversion: These are like special deals or money back from the government or car companies that make certain cars, like electric ones, cheaper to buy.

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