AAA study highlights high depreciation costs for electric vehicles

A new study from AAA reveals that while electric vehicles (EVs) offer savings on fuel and maintenance, high upfront costs and rapid depreciation often offset these benefits. According to the AAA Ownership Cost Study, average new vehicle ownership costs have reached approximately $12,863 per year.

Data indicates that the average new EV sells for roughly $4,800 more than non-electric models. Due to faster value loss, a medium electric sedan can cost about $3,080 more annually than a comparable gasoline model over a five-year period. While fuel savings are significant—with home charging costing roughly $660 annually compared to $2,080 for a 25-mpg vehicle—these gains are frequently neutralized by high vehicle loan interest rates and steep resale drops.

Individual consumer reports suggest that gas price spikes are driving some drivers to switch to EVs, such as the Kia EV9, to reduce monthly fuel spending. Some owners report significant immediate savings on fuel and improved driving experiences, including quieter cabins and smoother performance.