With gasoline prices soaring, switching to an electric vehicle might seem like an obvious way to save money. However, AAA’s latest research suggests that cheaper electricity doesn’t always translate into lower overall ownership costs.
According to the organization’s 2026 Your Driving Costs study, charging an EV can cost approximately 66% to 70% less than fueling a comparable gasoline-powered vehicle. That’s a significant advantage, especially for drivers covering thousands of miles annually.
Yet electric cars still came out more expensive in several of AAA’s vehicle comparisons. The culprit isn’t energy consumption, but expenses that are easier to overlook when shopping for a new car.
Depreciation, financing charges, and purchase-related fees can outweigh years of charging savings. Interestingly, the study also found that certain electric SUVs are already competitive with, or slightly cheaper than, their gasoline counterparts.
Charging Is Cheaper, Even With Rising Electricity Prices
AAA recorded an average gasoline price of $4.152 per gallon during its research, representing a 31.8% increase compared with 2025. Home electricity averaged 18 cents per kilowatt-hour, up a comparatively modest 7.8%.
Those figures give EVs a substantial advantage in energy costs, particularly for owners who regularly charge at home. However, AAA’s calculations reveal why focusing exclusively on fuel savings can be misleading.
Depreciation Is Eating Into Those Savings
The biggest difference appears in the midsize sedan category, where gasoline-powered models cost an estimated $10,582 annually to own. Comparable electric sedans averaged $13,662, making them approximately 29.1% more expensive.
AAA found that electric midsize sedans experienced roughly twice the depreciation of their gasoline counterparts. Higher financing expenses and fees also contributed to the difference, despite significantly lower charging costs.
Some Electric SUVs Actually Cost Less To Own
The comparison becomes much closer when looking at SUVs, which are increasingly popular with American buyers. Compact gasoline SUVs averaged $11,656 annually, while comparable EVs cost $11,888, a difference of just $232.
In the midsize SUV category, the results actually favored electric power. Gasoline models averaged $14,431 annually, compared with $14,332 for EVs, giving the electric alternatives a modest $99 advantage.
Gasoline-powered pickups were also cheaper to own in AAA’s comparison, averaging $16,626 annually versus $17,414 for electric models. These differences show why it’s difficult to declare either powertrain the cheaper option across the board.
The Deal You Get Could Change Everything
AAA’s calculations assume five years of ownership and 75,000 miles of driving, but individual circumstances can produce very different results. Purchase incentives, financing offers, resale values, and local energy prices all influence the final bill.
The study also found that hybrids offered lower ownership costs than gasoline models across all four comparison categories. For cost-conscious buyers, hybrids could offer a compelling middle ground between gasoline and fully electric vehicles.
The figures suggest that choosing between gasoline and electric power isn’t as simple as comparing pump prices with charging bills. With some categories separated by only a few hundred dollars annually, the price negotiated at the dealership could easily determine which vehicle proves cheaper to own in the long term.