New Analysis Reveals Electric Vehicles Can Save Michiganders Up to $21,100 Compared to Gas-Powered Cars Over Ten Years

January 31, 2024 — Today, Environmental Defense Fund and WSP, in partnership with Climate Power, released new analysis that found many popular and widely anticipated electric vehicles (EVs) offer Michigan consumers thousands of dollars in lifetime cost savings. The analysis looked at net purchase cost of the vehicle, fuel costs, insurance costs, and maintenance costs over ten years, using Michigan specific data, and found cost savings as high as $21,100 when comparing the cost of Ford’s F-150 Lightning EV with the gasoline-powered Ford F-150.

“The transportation sector is responsible for the single largest share of greenhouse gas emissions, and electric vehicles are central to our clean energy transition and reducing our total emissions,” said U.S. Representative Debbie Dingell (D-MI). “They also offer great benefit to consumers and have the potential to provide tens of thousands of dollars in lifetime savings. I will continue to work in Congress to invest in EV infrastructure, research, and manufacturing to increase cost effectiveness and make these vehicles affordable and accessible to more Americans.”

“Electric vehicles represent a win-win for Michiganders,” said Climate Power States Managing Director Saumya Narechania. “For too long, skyrocketing gas prices have lined the pockets of fossil fuel executives while American families pay the price at the pump. Electric vehicles are better for our environment and public health, and they’re becoming more affordable and accessible by the day.”  

“Consumers want choices and to save money. Those are powerful driving forces in today’s marketplace,” said Ellen Robo, manager of transportation and clean air policy at Environmental Defense Fund. “Electric vehicles are offering just that as they pass their gas-powered counterparts on total cost of ownership thanks to rapidly declining costs, generous cash-in-hand rebates from the Inflation Reduction Act, and lower fuel and maintenance costs. Buyers want the freedom to choose the vehicle that’s right for them and EVs are proving to be the smart, cost-effective choice in states across the U.S.”

EDF’s analysis also found that there are 37 EV models available for less than $48,000, the average purchase price of a new car last year, and 10 EV models available for less than $35,000. Electric vehicles represent more than a cost-saving opportunity for Michigan: they’re also bringing 19,700 new good-paying jobs and $21.9 billion in economic investment to the state, 100% of the investments announced since January 2021.

The Inflation Reduction Act is helping ensure that electric vehicles are at the core of the made-in-America manufacturing boom by requiring that EVs be assembled in North America in order to qualify for new vehicle consumer tax credits. And it’s working: 39% more electric vehicles were manufactured in North American factories in the first quarter of 2023 than the first quarter of 2022.