Katerina Swanson
Fuel-efficient cars are better for the environment and your wallet. While electric vehicles are the most efficient, they may not suit everyone's driving needs or budget. So, how much more do you need to spend to get a fuel-efficient car? Well, it depends. The upfront cost of a plug-in hybrid electric vehicle (PHEV) is about $8,000 more than a standard gasoline car, and a fully electric vehicle (EV) is about $10,000 more. However, these prices are before tax credits and don't account for fuel savings. For example, a PHEV could save you about $207 a year, and an EV with a 100-mile range could save you around $385 annually by 2025.
| Characteristics | Values |
|---|---|
| Fuel-efficient cars save money | Fuel-efficient cars save money at the pump and cut fuel bills to zero if you choose an all-electric model. |
| Fuel efficiency varies across vehicle types | A vehicle driven 12,000 miles annually saves 116 gallons of fuel annually compared to a midsize car, or $408 per year if gasoline is $3.50 per gallon. |
| Fuel efficiency and vehicle cost | The vehicle cost remains just over $30,000, as the addition of more fuel-efficient technology is offset by the reduction in the cost of the battery electric system. |
| Fuel efficiency and annual savings | An EV with a 100-mile range is projected to save around $385 annually in 2025 compared to a standard gasoline vehicle. |
| Fuel efficiency and driving style | Driving style affects fuel efficiency. Driving with underinflated tires, rapid acceleration, speeding, and using air conditioning can reduce fuel efficiency. |
| Fuel efficiency and vehicle age | Newer models are more fuel-efficient than older models, and consumers generally drive older cars. |
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What You'll Learn
- Electric vehicles are more expensive upfront but save on fuel costs
- Plug-in hybrid electric vehicles (PHEVs) offer fuel savings and high efficiency
- Diesel vehicles have a higher fuel economy but are more expensive
- SUVs and trucks are less fuel-efficient and more harmful to the environment
- Driving style and habits can improve fuel efficiency
Electric vehicles are more expensive upfront but save on fuel costs
Electric vehicles (EVs) tend to be more expensive upfront than their gas-powered counterparts. The average transaction price for an electric vehicle is $56,437, roughly $10,000 higher than the industry average of $46,329 for gas and electric vehicles. This higher upfront cost is due to the expense of the battery, the most expensive part of an EV. However, the price margin between EVs and gas-powered cars is expected to shrink in the coming years as manufacturers produce more affordable models and improve battery technology.
Despite the higher upfront cost, EVs offer significant savings on fuel costs. A 2018 study found that the average cost to fuel an electric car was $485 a year, compared to $1,117 for a gas-powered vehicle. Similarly, a 2020 Consumer Reports study showed that EV drivers spend about 60% less each year on fuel. These savings are due to the higher efficiency of EVs, which are 2.6 to 4.8 times more efficient at traveling a mile than gasoline internal combustion engines.
In addition to fuel savings, EVs also have lower maintenance costs since they have fewer parts than gas-fueled cars and do not require oil changes or spark plug replacements. However, it is important to consider the cost of charging an EV, which can vary depending on factors such as where you live and whether you charge at home or at public charging stations. Charging at home is generally more cost-effective, with an average monthly cost of about $25.
While EVs may have a higher upfront cost, they can provide significant savings over the long term. A U.S. Department of Energy report showed that after 15 years, electric cars generally cost less than similar gas-only models when factoring in price, maintenance, financing, repairs, tax breaks, and fuel costs. However, it is worth noting that EVs depreciate quicker than gas-powered cars, which can impact their resale value.
Overall, while electric vehicles may require a higher initial investment, they offer substantial fuel and maintenance cost savings over time, making them a more cost-effective option for many drivers.
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Plug-in hybrid electric vehicles (PHEVs) offer fuel savings and high efficiency
Plug-in hybrid electric vehicles (PHEVs) are a great option for those seeking fuel savings and high efficiency. PHEVs combine a conventional fuel engine with an electric motor, allowing them to utilise two power sources. This dual-power capability means PHEVs can use electricity instead of liquid fuel for a significant portion of travel, reducing fuel consumption and operating costs compared to traditional vehicles.
PHEVs offer flexibility in terms of power sources. When the battery is depleted, they can operate similarly to hybrid electric vehicles (HEVs), utilising both the electric motor and the combustion engine. This flexibility ensures that PHEVs achieve high fuel efficiency while also taking advantage of the benefits of electricity.
The efficiency of PHEVs is evident in their reduced petroleum use. They typically consume 30% to 60% less petroleum than conventional vehicles, contributing to lower fuel costs for owners. Additionally, PHEVs can further reduce costs through federal tax credits or state incentives in some regions.
The fuel savings of PHEVs are influenced by various factors, including the share of miles operating on electricity, fuel costs, and ownership length. For example, a PHEV with a longer electric range or a higher proportion of electric usage will generally yield greater fuel savings. However, it's important to note that PHEVs may be more expensive upfront, with incremental costs of $4,000 to $8,000 compared to standard gasoline vehicles.
When considering a PHEV, it's essential to evaluate your lifestyle and driving needs. These vehicles are ideal for those with access to charging infrastructure, such as a home driveway, and for those who drive shorter distances or in urban areas. By plugging in regularly, you can maximise the electric range and fuel efficiency of your PHEV.
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Diesel vehicles have a higher fuel economy but are more expensive
While diesel vehicles have a higher fuel economy than gasoline vehicles, they are also more expensive. Diesel engines have a sizeable miles per gallon (mpg) advantage over gasoline engines, with diesel vehicles achieving 20% to 35% more miles per gallon than their gasoline counterparts. This is because diesel fuel contains roughly 10% to 15% more energy than gasoline, and diesel engines require fewer repairs and maintenance services.
However, diesel engines are also more expensive to maintain due to higher routine maintenance costs and the frequency of these maintenance checks. Diesel engine hard parts, such as starters, alternators, water pumps, and batteries, are also more costly. Additionally, diesel vehicles can suffer from a lack of parts availability, and there is a shortage of qualified technicians to perform repairs. These factors can result in diesel vehicles having 2.5 to 4.5 more downtime days per year.
The higher fuel economy of diesel engines is particularly beneficial for highway driving, and diesel is a popular choice for customers who drive many highway miles. However, for those who primarily engage in city driving, the benefits of diesel are less significant.
When considering the total cost of ownership, it is important to note that diesel vehicles can have a higher resale value, particularly within the first three to five years of ownership. This was demonstrated in a 2013 study by the University of Michigan Transportation Research Institute, which concluded that owners of diesel vehicles enjoyed a fuel cost advantage over owners of gasoline vehicles. However, this study was focused on diesel automobiles from Volkswagen and Mercedes, which may not be representative of all diesel vehicles.
Overall, while diesel vehicles offer higher fuel economy, their higher maintenance costs and other factors can make them a more expensive option.
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SUVs and trucks are less fuel-efficient and more harmful to the environment
The fuel efficiency of cars varies significantly across vehicle types. SUVs and trucks are generally less fuel-efficient than other types of vehicles. They are typically built on truck-style ladder frames, making them heavier and requiring more powerful and fuel-hungry engines. This makes them 15-30% less fuel-efficient than the average passenger car, such as a sedan.
The lower fuel efficiency of SUVs and trucks results in higher fuel costs for consumers and more frequent refuelling. Additionally, their larger bodies and powertrains require bigger batteries, making them harder to electrify than smaller cars. This contributes to the challenge of reducing emissions in the auto sector.
To improve the fuel economy of SUVs, automakers have transitioned to more car-like platforms, making them lighter, more spacious, and more efficient. They have also incorporated new construction methods and advanced powertrain technologies. Despite these improvements, SUVs still lag behind other vehicle types in terms of fuel efficiency.
While some SUVs offer hybrid or electric powertrains, the majority of options are traditional gas-powered models. This is because automakers have a greater incentive to sell larger vehicles, as they yield higher profits. As a result, they introduce a wider variety of SUVs, enticing consumers with larger and more powerful options.
The higher cost of electric and hybrid vehicles is a barrier for some consumers. Plug-in hybrid electric vehicles (PHEVs) can cost $8,000 or more than their conventional gasoline counterparts, even with projected battery system cost reductions. Electric vehicles (EVs) with a 100-mile range can cost around $10,000 more but are expected to save around $385 annually in fuel costs compared to standard gasoline vehicles.
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Driving style and habits can improve fuel efficiency
Driving style and habits have a significant impact on fuel efficiency, and making a few adjustments can lead to notable savings. Firstly, aggressive driving behaviours such as speeding, rapid acceleration, and braking can lower fuel economy by 15-30% on highways and 10-40% in stop-and-go traffic. Observing speed limits and driving smoothly and courteously can improve fuel efficiency and enhance safety. Additionally, maintaining a constant speed by using cruise control, particularly on highways, can help save fuel.
Another critical factor is idling, which can consume a significant amount of fuel. Turning off the engine when the vehicle is parked, even for short periods, can lead to fuel savings. Modern vehicles equipped with a stop-start system can assist in this regard by automatically stopping and restarting the engine as needed. For vehicles without this system, limiting engine starts to about ten times per day and driving at least 5 miles between start cycles can help reduce idling.
Proper vehicle maintenance is also essential for optimising fuel efficiency. Ensuring proper tyre inflation, using the recommended grade of motor oil, and regularly changing engine oil and air filters can all contribute to improved fuel economy. Additionally, planning journeys in advance to take the most efficient route and removing unnecessary cargo from the vehicle can further enhance fuel efficiency.
By adopting these driving habits and maintenance practices, individuals can improve their fuel efficiency, reduce fuel costs, and contribute to a more sustainable future.
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Frequently asked questions
The cost of a fuel-efficient car varies depending on the type of vehicle and its fuel type. For example, the 2024 Mitsubishi Mirage, which is the most affordable fuel-efficient car, has a starting price of just under $18,000. In contrast, a plug-in hybrid electric vehicle (PHEV) can cost $8,000 or more than a standard gasoline car, even before tax credits.
Some popular fuel-efficient cars include the Toyota Prius, Hyundai Elantra Hybrid, Kia Niro Hybrid, and Toyota Camry Hybrid. The Lexus NX 450h+ is also a good option if you're looking for a more luxurious vehicle that's still easy on fuel.
The fuel efficiency of a car is typically measured in miles per gallon (MPG) or litres per 100 kilometres. You can find this information on the manufacturer's website or by searching for the vehicle on a fuel economy website.
