Pros and Cons of Electric Cars

Q: Is insurance higher for electric cars?

Yes, the cost of car insurance can be higher for electric cars than conventional cars. One reason is because electric cars typically cost more than conventional cars on average. Another reason is because electric cars can have steeper repair costs on average.

Q: How long do electric cars last?

Electric cars generally have an expected battery lifetime of 12 to 15 years. EV batteries may have a manufacturer’s warranty covering eight years or 100,000 miles. You can replace a faulty or dead battery, but it may cost you $5,000 to $15,000.

Q: What is the biggest problem with electric cars?

One of the biggest problems with electric cars in 2023 is that the number of electric charging stations is much lower than the number of gas stations. The United States has about 145,000 gasoline pump stations and 50,000 electric charging stations.

Sulaiman Abdur-RahmanUpdated February 7, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

There are several pros and cons of electric cars to consider if you’re wondering whether 2023 is the year to buy a fully electric car. One of the benefits of driving an electric car is that it produces zero tailpipe emissions, but charging your electric car battery can take hours.Consumers who buy a new electric car in 2023 may be eligible for a $7,500 clean vehicle tax credit. The Inflation Reduction Act of 2022 also offers federal tax credits of up to $4,000 for eligible consumers who buy a used electric car. Below we highlight some of the electric cars pros and cons.

Electric Cars Pros and Cons

An electric vehicle or EV runs exclusively on electricity. Below we highlight some of the pros and cons of electric cars:

Pros of Electric Cars

Powered exclusively by electric motors
No internal combustion engine
No tailpipe emissions
No oil changes
Regenerative braking can increase driving range
May qualify for clean vehicle tax credits up to $7,500

Cons of Electric Cars

Less affordable than conventional cars on average
Driving range can be as low as 80 to 100 miles on full charge
Lengthy and slow battery charging times
Car insurance costs can be high
Repair costs can be expensive
Fewer electric charging stations than gas stations

The below table compares the pros and cons of electric cars:

Pros of electric cars	Cons of electric cars
Powered exclusively by electric motors	Less affordable than conventional cars on average
No internal combustion engine	Driving range can be as low as 80 to 100 miles on full charge
No tailpipe emissions	Lengthy and slow battery charging times
No oil changes	Car insurance costs can be high
Regenerative braking can increase driving range	Repair costs can be expensive
May qualify for clean vehicle tax credits up to $7,500	Fewer electric charging stations than gas stations

Pros and Cons of Electric Cars on the Environment

There are a number of pros and cons of electric cars on the environment. Electric cars produce zero tailpipe emissions, but charging their batteries can create a sizable carbon footprint.Charging your electric car involves electricity generation, and electricity generation may produce carbon emissions. A variety of energy sources can generate electricity, including fossil fuel power stations and renewable energy infrastructure.The manufacturing of electric cars and the need to charge their batteries with electricity leaves behind a carbon footprint. It begs the question: Are electric cars better for the environment than conventional cars?All things considered, electric cars are generally better for the environment than conventional cars. Electric cars typically have a smaller carbon footprint than conventional cars, according to the U.S. Environmental Protection Agency.Recommended: How Much Is a Hybrid Car Battery Replacement?

Electric Cars vs Conventional Cars

The average cost of electric cars is higher than the average cost of conventional cars. The average new electric car sold for $61,448 in December 2022 compared with the overall industry average of $49,507, according to Kelley Blue Book.Car loans can help you buy a new or used car. The way how car loans work is the same whether you buy an electric car or conventional car. Borrowers are expected to repay the car loan over a set term, and these loans may include interest charges.Here are some factors to consider:

Failing to repay a secured car loan can result in car repossession
Cars may depreciate in value as they age
Making a sizable down payment on a car can lower your borrowing costs and minimize your monthly repayment obligations
The make and model of a car can influence what you pay in auto insurance
Paying off a car loan early may minimize your car loan interest costs

Recommended: Auto Loan Shopping Guide

Pros and Cons of Electric Car Leasing

If you cannot afford to buy an electric car, you may consider a short-term car lease. The average monthly payment on a new car lease is generally lower than the average monthly payment on a new car loan. Below we highlight some of the pros and cons of leasing an electric car:

Pros of Electric Car Leasing

Gives you the privilege to drive a new car with zero tailpipe emissions
Monthly lease payments can be lower than auto loan payments
You may have the option to extend the lease
You may have the option to buy the car or return it when the lease expires

Cons of Electric Car Leasing

You have no ownership or equity stake in the car
Mileage restrictions may limit how much you can drive the car
You may have to pay a variety of fees and charges when returning the car
Getting lease approval can be extremely difficult if you have bad credit

The Takeaway

Electric cars can be pricey, but the clean vehicle tax credit may give you an incentive to buy a new or used EV. Driving a car with zero tailpipe emissions can be better for the environment than conventional cars that emit carbon dioxide and other greenhouse gases.If you’re unhappy with your current car loan, Lantern by SoFi can help you find the right auto loan refinance terms for you. Refinancing may provide you with a lower interest rate and lower monthly payment.Compare auto refinance rates with Lantern.

Frequently Asked Questions

Is insurance higher for electric cars?

How long do electric cars last?

What is the biggest problem with electric cars?

Photo credit: iStock/Arand

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About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.

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