With gas prices fluctuating, environmental concerns growing, and automotive technology advancing, choosing between electric vehicles (EVs), hybrids, and gas-powered cars in 2025 is no easy task. Each option has its perks, but when it comes to long-term costs, which one truly saves you money? In this comprehensive guide, we’ll break down the costs of owning an EV, hybrid, or gas car over time, using the latest 2025 data to help you make an informed decision. Whether you’re a budget-conscious buyer or an eco-warrior, this article will steer you toward the most cost-effective choice for your lifestyle.
Understanding Total Cost of Ownership (TCO)
When comparing EVs, hybrids, and gas cars, the sticker price is just the starting line. Total Cost of Ownership (TCO) includes:
- Purchase Price: The upfront cost of the vehicle.
- Fuel/Charging Costs: What you spend on gas or electricity.
- Maintenance and Repairs: Routine upkeep and unexpected fixes.
- Insurance: Premiums vary by vehicle type.
- Depreciation: How much value the car loses over time.
- Incentives: Tax credits or rebates that can offset costs.
In 2025, TCO is critical because gas prices, electricity rates, and incentives are shifting. Let’s dive into each factor to see which vehicle type comes out on top.
Upfront Costs: Purchase Price Breakdown
Gas-Powered Cars
Gas cars remain the most affordable upfront. In 2025, the average new gas car costs around $30,000, with used options dipping below $20,000. Models like the Toyota Corolla or Honda Civic offer reliability at a budget-friendly price.
Hybrids
Hybrids, like the Toyota Prius or Ford Maverick Hybrid, cost more, averaging $33,000 to $38,000. They no longer qualify for federal tax credits in 2025, which makes their upfront cost less appealing compared to EVs.
Electric Vehicles (EVs)
EVs have the highest sticker price, averaging $55,544. However, affordable options like the Chevrolet Bolt EUV or Hyundai Kona Electric start under $35,000, and some qualify for federal tax credits up to $7,500, bringing the effective cost closer to gas cars.
Winner: Gas cars for lowest upfront cost, but EVs can compete with incentives.
Fuel and Charging Costs: Where EVs Shine
Gas-Powered Cars
Gas cars are the priciest to fuel. At an average of $3.80 per gallon and 25–30 MPG, you’ll spend $1,600–$2,000 annually for 12,000 miles. Long-term, this adds up significantly.
Hybrids
Hybrids, with 40–50 MPG, cut fuel costs to around $1,000–$1,200 per year for the same mileage. Their efficiency makes them a strong middle ground.
EVs
EVs are the clear winner here. Charging at home costs about 14¢ per kWh, translating to $12–$15 for a 300-mile charge or $675 annually for 15,000 miles. Public fast-charging (up to 50¢/kWh) reduces savings, but EVs still beat gas and hybrids on energy costs, especially in states with low electricity rates like Nevada.
Winner: EVs, especially for home chargers.
Maintenance and Repairs: EVs vs. Hybrids vs. Gas
Gas-Powered Cars
Gas cars require regular maintenance—oil changes, air filters, and transmission servicing—costing around $2,500 over 5 years. Repairs are predictable but frequent.
Hybrids
Hybrids combine gas and electric systems, which can increase complexity. Maintenance averages $3,000 over 5 years, and battery replacements post-warranty can be costly.
EVs
EVs have fewer moving parts, eliminating oil changes and reducing brake wear via regenerative braking. Maintenance costs are low, around $1,500 over 5 years, but battery replacement outside warranty (rare, but possible) can exceed $10,000. Most EV batteries last 8–10 years or more, covered by warranties.
Winner: EVs for lower maintenance, but gas cars are more predictable.
Insurance Costs: The Hidden Factor
Gas-Powered Cars
Gas cars, especially reliable models like the Toyota Corolla, have the lowest insurance premiums, averaging $7,000 over 5 years. Familiar repair processes keep costs down.
Hybrids
Hybrids are slightly pricier to insure, around $9,000 over 5 years, due to their dual systems.
EVs
EVs face higher premiums—around $11,000 over 5 years—because of expensive parts and battery repair costs. For example, insuring a Tesla Model Y can cost $2,000–$2,400 annually.
Winner: Gas cars for lower insurance costs.
Resale Value: What Holds Up Best?
Gas-Powered Cars
Reliable gas models from Toyota and Honda hold strong resale value, losing about $10,000 over 5 years. Their widespread demand keeps them competitive.
Hybrids
Hybrids like the Toyota Prius retain good value, depreciating around $12,000 over 5 years, though the used hybrid market is tighter.
EVs
EV resale is mixed. Premium models like Tesla and Rivian hold value well, but others, like the Nissan Leaf, can lose $16,000–$25,000 over 5 years due to rapid tech advancements. As EVs become mainstream, resale values are improving.
Winner: Gas cars and select hybrids for better resale value.
Tax Credits and Incentives in 2025
Gas-Powered Cars
No federal incentives are available for gas cars.
Hybrids
Hybrids lost federal tax credits in 2025, though some states offer smaller rebates or perks like carpool lane access.
EVs
EVs can qualify for a federal tax credit of up to $7,500 (applied at purchase), depending on the model’s manufacturing origin and your income. Some states add rebates or free public charging, significantly lowering TCO. However, proposed legislation could eliminate these credits, so act fast.
Winner: EVs, if you qualify for incentives.
Long-Term Cost Comparison: 5-Year and 10-Year Outlook
Here’s a 5-year TCO estimate for 12,000 miles/year, based on 2025 data:
| Category | EV | Hybrid | Gas |
|---|---|---|---|
| Purchase Price | $45,000* | $36,000 | $30,000 |
| Fuel/Energy | $3,000 | $6,000 | $9,000 |
| Maintenance | $1,500 | $3,000 | $2,500 |
| Insurance | $11,000 | $9,000 | $7,000 |
| Depreciation | $14,000 | $12,000 | $10,000 |
| Total | $74,500 | $66,000 | $58,500 |
*Assumes $7,500 federal tax credit for EVs.
10-Year Outlook:
- EVs: Save $6,000–$12,000 over gas cars, especially for high-mileage drivers (15,000+ miles/year) with home charging. Savings shrink if reliant on public chargers.
- Hybrids: Cheapest for drivers without home charging or lower mileage, saving $300/year on fuel vs. gas cars.
- Gas Cars: Most expensive long-term due to high fuel and maintenance costs.
Winner: EVs for high-mileage drivers with home charging; hybrids for those without charging access; gas cars for short-term ownership.
Read More: How Much Can I Save by Switching to an Electric Car?
Which Vehicle Is Right for You?
Choose an EV If:
- You drive 15,000+ miles/year.
- You have home charging (Level 2 charger: $500–$1,500 to install).
- You qualify for federal/state incentives.
- You live in areas with low electricity rates (e.g., Nevada, Washington).
- You plan to keep the car 5+ years.
Choose a Hybrid If:
- You want fuel efficiency without charging hassles.
- You drive moderate mileage (10,000–15,000 miles/year).
- You lack home charging or live in rural areas.
- You want a reliable, low-maintenance option.
Choose a Gas Car If:
- You need the lowest upfront cost.
- You drive <10,000 miles/year or take frequent long road trips.
- You prefer short-term ownership (2–3 years).
- You live in areas with limited charging infrastructure.
Final Thoughts: The Smartest Choice for 2025
In 2025, EVs offer the best long-term savings for high-mileage drivers with home charging, potentially saving $8,000–$15,000 over a vehicle’s lifetime. However, their high upfront cost and insurance premiums make them less ideal for budget-conscious buyers or those without charging access. Hybrids strike a balance, offering excellent fuel economy and lower TCO for drivers without chargers, making them the go-to for many Americans. Gas cars remain the cheapest upfront and a safe bet for short-term ownership or rural drivers, but their long-term costs are the highest.
To choose wisely, calculate your TCO using tools like the EPA’s Fuel Economy Website or Edmunds’ True Cost to Own. Consider your driving habits, charging access, and local energy prices. With EVs becoming more affordable and charging infrastructure expanding, 2025 could be the year to go electric—but for many, hybrids or gas cars still make financial sense.