Gas vs. electric vehicles: What you need to know

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Are you thinking about buying an electric vehicle (EV)? Here’s how they compare to gasoline-powered cars and trucks

If you’re in the market for a new car, you might be thinking about buying an electric vehicle (EV). Not only are EVs better for the environment, but they’re also potentially better for your wallet in the long run too, and the federal government is offering incentives to get more EVs on the road. Canada’s proposed regulation will require that 60 per cent of new light-duty vehicle sales be zero-emission vehicles by 2030.¹ So, if you’re not in the market for an EV right now, you might be in the near future.

As far as looks go, EVs and gas-powered cars aren’t that different but there are a few key traits that set them apart – beyond what’s under the hood. There’s a lot to consider with each option, so here’s what you should know before taking the plunge.

First, let’s break down the differences between the various types of EVs, how they work and how they compare to gas powered vehicles.

Weighing the costs

While EV sales are increasing in Canada and across the world, there’s still a way to go before they become the new normal. A big reason behind the slower adoption of EVs is their price tag.

With new pure battery EVs starting at around $40,000, it’s true they can be more expensive than their gas-powered alternatives. Plug-in hybrids and hybrid vehicles are generally cheaper, but still cost more than comparable gas vehicles. However, the Government of Canada offers incentives for Canadians who purchase ‘zero-emission vehicles,’ which include battery-electric, plug-in hybrid electric, or hydrogen fuel cell options. Some provinces also offer their own incentives, which you can combine with the federal rebate.

While EVs don’t need gas to run, they do need to be charged. Another cost most Canadian EV drivers need to consider is the installation of a Level 2 charger at home, which can range from $200 to $2,000.

Still, one of the biggest selling points for EVs, beyond their reduced emissions, is they’re less expensive to drive and maintain. For a BEV, charging costs can be a quarter of the cost of fuel for an average driver because the cost of electricity per kilometer is much lower than gasoline.

EVs also have a simpler, more efficient drivetrain and fewer moving parts. This means your yearly service will usually just involve a tire rotation and a check-over — no oil changes, no timing belt replacements, no coolant replacement.

Financing

With the price tag for EVs and hybrids being higher on average than most gas-powered cars, finding the best financing option can help you get the keys to a new green vehicle.

CIBC can help you drive more sustainably and save money with special financing rates for electric and hybrid vehicles. With every green vehicle loan we finance through this program, we also donate $25 to the Nature Conservancy of Canada.

Learn more about CIBC green vehicle loans.

How long does it take to charge an EV?

How often you’ll need to charge depends on how much you drive every day. Most EV models offer at least a 200-kilometre range on a full charge. More EVs with a 350- to 400-kilometre range are starting to become more common. Some new, long-range EVs can go as far as 600 kilometres on a charge.

Home charging is the most popular way to charge an EV, using a standard wall socket or a charging station. The time it takes to fully charge an EV depends on the charging capacity and how full the battery is.

• Level 1: Often takes over 8 hours to fully charge an EV, but level 1 chargers work with almost every EV on the market and use a standard 120-volt outlet.
• Level 2: Often takes about 4 hours to fully charge. They have the same electrical output as a clothes dryer or stove and are installed by a licensed electrician. This is the most common type for at-home charging.
• Level 3: These charging stations are available in public settings and are the quickest way to charge a vehicle, with a full charge taking around 30 minutes. They may require additional connectors, depending on your EV.

The public network of chargers that spans across Canada continues to grow as EVs become more popular. These chargers are typically located at service stations, hotels, shopping malls and curbside in urban areas.

Reduce your carbon footprint

Transportation accounts for about 25 per cent of Canada’s greenhouse gas emissions, and almost half of that comes from passenger cars and light trucks.1 Shifting to cleaner fuels and electrifying light-duty vehicles can reduce emissions from Canada’s transportation sector.2 If you’re concerned about minimizing your personal impact on the environment, BEVs are the most sustainable choice as they produce no tailpipe emissions.

Looking for more resources on EVs and sustainable living?

Visit the CIBC Climate Centre!

The bottom line

Despite their high price tag, over the long run, the true cost of owning an EV can be less expensive than a gas-powered option. If you’re in the market for your next vehicle, it’s important to think about how frequently and how far you travel, which costs matter most to you and whether an EV fits the rest of your lifestyle.

Advertising feature provided by CIBC. The Globe and Mail’s editorial department was not involved.