This article was written and edited before Krystyna Lagowski passed away in October 2023. She was a valued member of the Globe Drive team, contributing regularly since 2022 on topics including electric vehicles, charging infrastructure, car buyer protection and dealer regulation.
One of the first things Tony Cimello did when he splurged on a used all-electric 2019 Hyundai Kona was set up a spreadsheet to track how much he was really saving by going electric.
He used Fuelly.com, an online site that lets you track your gas mileage, to chart the difference between his Kona EV and its gas-powered sibling. Comparing the two, Cimello promptly discovered a 71-per-cent savings. And, compared with his previous car – the larger, heavier 2012 Hyundai Santa Fe – the savings through the first three years rang in at $4,363, or 84 per cent.
Fully loaded, he paid $40,000 in cash for the Kona EV – about $10,000 more than the going rate for a gas-powered Kona with similar features.
Cimello lives in rural Hubbards, N.S., about 50 kilometres west of Halifax, where gas was hovering around $1.65 a litre when he spoke to The Globe and Mail. At that price, he says it costs $14.08 to travel 100 kilometres in a gas-powered Kona, but only $4.10 in the EV. Cimello drives mostly on highways and says the Kona’s 400-kilometre range is more than enough. In fact, where Cimello used to save up his driving errands with the Santa Fe to cut fuel costs, he now sometimes goes out for a spin just for fun.
Cimello is one of many Canadians looking to reduce their carbon footprint by going electric. And while he’s clearly seeing the kinds of gas savings he hoped for, he’s also seeing other positive changes to his bottom line.
For one, because EVs don’t have engines or transmissions and don’t need oil changes, he hasn’t had to do any maintenance other than buying windshield washer fluid. The Kona also came with winter tires, taking some of the financial sting out of buying a new-to-him car. And, his $2,000 government EV rebate evened out the $2,000 home-charger installation cost.
He’s not worried about the battery because of Hyundai’s eight-year warranty. He hopes he will have broken even by then, at which point he intends to sell the car and buy another EV. All in all, the only car-related expense that has gone up is insurance because the Kona has more coverage than his previous vehicle.
While Cimello had been planning his electric transition for a while, serendipity and good timing played a role in Andrew Spadzinski’s switch.
When Spadzinski’s diesel-powered Volkswagen Jetta wagon was bought out by the German automaker in the midst of the 2016 Dieselgate scandal, he purchased a new 2017 e-Golf, with a range of about 200 kilometres and a market price of $43,324. His out-of-pocket investment in the e-Golf weighed in at $20,000, after receiving $15,000 in government incentives ($10,000 provincially and $5,000 federally, at the time).
The e-Golf cost nearly $6,500 more than its gas-powered twin, but Spadzinski saved more than that in the first five years. On top of his gas savings, his maintenance and repair costs are also significantly lower, having spent just $600 annually on the EV – about $130 yearly inspection for brakes, plus replacement air-cabin filters and windshield wipers.
“It’s paid for itself a long time ago just in fuel savings,” says Spadzinski, who lives in Fort Erie, Ont.
Before getting the e-Golf, his wife used the Jetta to commute to work, driving about 25,000 kilometres a year and spending about $300 a month at the pump. The same usage with the EV costs around $50 to $60 monthly in electricity. “That covered the car payment,” he says of the difference.
Their cost savings are typical, according to Trevor Melanson, director of communications at Vancouver-based climate-change think tank Clean Energy Canada.
An April 2022 report from Melanson’s organization analyzed the cost of EV ownership, accounting for sticker price, home charging, fuel, maintenance, annual mileage of 20,000 kilometres, electricity prices across Canada and EV purchase incentives. To compare apples with apples, the report used two Hyundai Konas – one EV and one combustion engine. The EV had a total lifetime cost of $49,700 compared with the gas-powered vehicle’s $60,200.
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“We assumed eight years of ownership, with some depreciation if you sell the car after that,” says Melanson. Fuel costs are the biggest differentiator between a gas vehicle and an EV, but with fewer moving parts and no need for fluid service, EVs carry vastly lower maintenance costs than conventional cars.
Of course, Canadians’ mileage may vary when it comes to EV savings.
Electricity rates are a mixed bag across the country, with electricity costing nearly twice as much in Saskatchewan as it does in Quebec. Both Cimello and Spadzinski primarily charge their EVs at home, which is more cost-effective than paying for roadside charging.
Repair costs are another important consideration. Paul Repar, president of Oakville, Ont., used EV dealer Shift Electric Motors, says the most common EV repairs and service needs he encounters are tires, brakes and suspension.
Brakes can last longer than their combustion-engine brethren because of regenerative braking. However, because EVs are heavier, suspension components can start to wear at about 100,000 to 120,000 kilometres. “A Tesla Model S is about 6,000 pounds, where the average sedan is about 4,000,” Repar says. EVs typically have more power and torque than conventional cars, so aggressive drivers may notice earlier strain on the suspension. The good news, he says, is that rather than doing a complete system replacement, EV owners can instead change individual components, which helps to bring down costs.
One thing that does cost more on an EV is battery replacement. Whereas a gas-powered car battery might cost a couple hundred bucks, a new EV battery typically ranges between $10,000 to $20,000 depending on the vehicle.
However, one of the biggest misconceptions with EVs is that all cars eventually demand new batteries. Repar says that’s not so. He recently bought a few Teslas at auction that had been used as taxis in Montreal. “They had up to 500,000 kilometres, and were supercharging multiple times daily, which puts more strain on the battery,” he says.
After testing, the batteries only had between 10- to 12-per-cent degradation, even with hundreds of thousands of kilometres on their odometers. “With our Canadian environment’s seasonality and salt, your car will deteriorate into dust before the battery gives up,” says Repar.