What Does an Electric Vehicle Really Cost Compared to a Gas Car in Canada?

What Does an Electric Vehicle Really Cost Compared to a Gas Car in Canada?

Many Canadians are intrigued by electric vehicles—drawn to the lower emissions, quieter rides, and the appeal of ditching the gas station. But when it comes to cost, the real question is: are EVs actually cheaper than gasoline-powered cars over time?

The answer isn’t just about sticker price. To make a sound decision, Canadian car buyers need to weigh the total cost over time, including purchase incentives, energy use, maintenance, and resale value. This guide breaks down all of those factors, giving you a clear, practical comparison of EVs versus gasoline vehicles in Canada.

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What Does an Electric Vehicle Really Cost Compared to a Gas Car in Canada?

Upfront Cost: Are EVs More Expensive?

At first glance, EVs often seem more expensive than gas cars. A compact EV SUV might list for $50,000 while a similar gas SUV is $35,000. EVs often carry a higher sticker price than comparable gas cars is mainly due to the battery, which is the most expensive component. However, several factors reduce that gap:

• Federal Incentives: Canada’s iZEV program offers up to $5,000 off eligible EVs. Plug-in hybrids can get up to $2,500.
• Provincial Rebates: Quebec adds up to $7,000, B.C. up to $4,000, and other provinces offer additional discounts.
• Standard Features: Many EVs come with more premium features included, like advanced safety tech and larger infotainment systems.
• Market Shifts: New, budget-friendly EV models are expanding access beyond luxury buyers.

When combined, these incentives can bring an EV’s net price close to—sometimes even below—that of a comparable gas vehicle.

On the other hand, many electric cars come with a higher level of standard equipment, including advanced driver-assistance systems (ADAS), larger infotainment screens, and premium interior finishes, which, if optioned on a gasoline car, would narrow the price gap. The market is also diversifying. While early electric cars were often positioned in premium segments, we are now seeing a growing number of more affordable plug-in cars and fully electric models designed for the mass market, making them more accessible.

When comparing the upfront cost, ensure you’re looking at vehicles with similar features and specifications. Don’t be put off by the initial sticker surprise; instead, look into all available incentives and compare vehicle models and features side by side. The true acquisition cost of many plug-in automobiles in Canada is frequently significantly lower than just looking at MSRPs suggests.

What Does an Electric Vehicle Really Cost Compared to a Gas Car in Canada

Fuel vs. Charging: Ongoing Energy Costs

The price of gas is volatile and rising due to global markets and carbon pricing. In contrast, charging an EV—especially at home—is far cheaper and more predictable.

• Home Charging: Most EV owners charge overnight using residential electricity, which costs as little as $0.08–$0.12/kWh in provinces like Quebec and Manitoba.
• Fuel Savings Example: A typical EV might cost $400/year in electricity to drive 20,000 km. A gas car with 8 L/100 km efficiency at $1.70/L would cost over $2,700/year.
• Public Charging: Occasional use of fast chargers costs more, but even then, it’s often cheaper than gas. Some Level 2 chargers are even free.

Let’s look at an example: if an EV consumes 20 kWh/100 km (a common efficiency for many models) and your electricity rate is $0.10/kWh, it would cost $2.00 to drive 100 km. If you drive 20,000 km per year, your annual home charging cost would be approximately $400.

Now compare this to a gas-powered car. Let’s assume a comparable gasoline car has a fuel efficiency of 8 L/100 km. If gasoline prices average $1.70/L (a conservative figure in many parts of Canada recently, and subject to significant fluctuation and regional carbon taxes), driving 100 km would cost $13.60. 

For the same 20,000 km annually, the gasoline cost would be $2,720. In this scenario, the EV owner saves $2,320 per year on fuel alone. Over a typical 5-10 year ownership period, these savings on ownership expenses become incredibly substantial. Even in provinces with higher electricity rates, the cost per kilometer for an EV is almost always considerably lower than for a gasoline vehicle. Many utility companies in Canada are also exploring or implementing special EV charging rates or programs, which could further reduce these costs.

Public charging is another aspect of the EV charging cost equation. While the vast majority of charging (over 80-90%) is done at home or at work, public chargers are essential for longer trips or for those without dedicated home charging. Public charging stations come in two main types: Level 2 (similar to home chargers, often found in shopping plazas, workplaces, and municipal parking lots) and DC Fast Chargers (DCFC) or Level 3 chargers. DCFCs can add hundreds of kilometers of range in 20-60 minutes and are crucial for intercity travel. 

The cost of public charging varies. Some Level 2 stations are free and offered as an amenity. Others charge by the hour or by kWh consumed. DC Fast Charging is generally more expensive than home charging, often priced per minute or per kWh, and rates can range from $0.20/kWh to over $0.60/kWh, or 10-30 per hour of connection time, depending on the network (e.g., Petro-Canada, Electrify Canada, FLO, ChargePoint, Tesla Superchargers) and charging speed. While more expensive than home charging, it’s still often competitive with, or cheaper than, gasoline for the equivalent range added, especially on long trips where time is a factor. However, relying solely on public DC fast charging would significantly increase your “fueling” vehicle expenses compared to primarily charging at home.

Overall, charging an electric cars in Canada can save you thousands every year—especially if you drive a lot and mostly charge at home.

Maintenance: Fewer Moving Parts, Lower Costs

Gas vehicles require regular oil changes, exhaust system repairs, and complex engine maintenance. EVs don’t. Here’s why EVs are cheaper to maintain:

• No oil, spark plugs, or timing belts
• Fewer mechanical parts to wear out
• Less brake wear thanks to regenerative braking

Gasoline cars are complex machines with hundreds of moving parts in their engines and transmissions. Regular maintenance for an ICE vehicle is a familiar routine for most Canadian car owners: oil changes every 5,000 to 10,000 kilometers, spark plug replacements, filter changes (oil, air, fuel), timing belt replacements, exhaust system repairs (mufflers, catalytic converters rusting out, especially with Canadian road salt), and transmission fluid changes. 

Typical annual maintenance for an EV might run $300–$500, versus $800–$1,200 for a gasoline car. Over 8 years, that’s a difference of several thousand dollars. 

EV batteries are the one major concern, but most come with warranties of 8 years or 160,000 km, and outright failures are rare. As technology advances, battery repairs are becoming more modular and affordable.

Depreciation: How EVs Hold Their Value

Depreciation is the largest hidden cost of car ownership. While early EVs depreciated quickly due to tech uncertainty and limited demand, that trend is shifting.

Newer EVs are holding their value better, thanks to:

• Rising fuel costs making EVs more attractive used
• Growing demand and limited supply
• More confidence in long-term battery life

In many cases, EVs now retain as much or more value than comparable gas cars after several years—especially in high-demand markets like Quebec or B.C.

When comparing electric cars depreciation to gasoline car depreciation, it’s important to consider specific segments. Luxury sedans, whether ICE or EV, tend to depreciate more rapidly than more utilitarian vehicles like pickup trucks or some SUVs. For mainstream plug-in cars and EVs, data from organizations like Canadian Black Book (which tracks vehicle valuation) is becoming increasingly important. Recent trends suggest that many popular EV models are depreciating at rates comparable to or slower than the industry average for gasoline vehicles. 

Total Cost of Ownership: A Canadian Case Study

After carefully breaking down every aspect of ownership expenses, now let’s compare two compact SUVs—one gas-powered, one electric—over 8 years and 160,000 km. Let’s consider a hypothetical Canadian scenario: a family driving 20,000 km per year, planning to own their vehicle for 8 years.

Gas SUV

• Purchase Price: $35,000
• Fuel (avg. $1.80/L average over 8 years): $25,920

Annual Fuel Cost: 200 (100km blocks) * 9 L * $1.80/L = $3,240

Total Fuel Cost (8 years): $25,920

• Maintenance: $6,400
• Resale (30%): $10,500
• Total Outlay before Resale: $35,000 (car) + $25,920 (fuel) + $6,400 (maintenance) – $10,500 (resale) = $56,820 
• Net Cost: $56,820

EV SUV

• Purchase Price: $50,000
• Incentives (Federal): -$5,000
• Net Price: $45,000
• Charger + Install: $1000
• Charging Cost: $3,500

Average Electricity Price (home charging, e.g., Quebec/BC rates): $0.09/kWh

Annual Charging Cost: 200 (100km blocks) * 20 kWh * $0.09/kWh = $360 (assuming 90% home charging, some public charging might slightly increase this)

Total Charging Cost (8 years): $2,880 (let’s round up to $3,500 to account for some public charging)

• Maintenance: $2,400
• Resale (30%): $15,000
• Total Outlay before Resale: $45,000 (car) + $1,000 (charger) + $3,500 (charging) + $2,400 (maintenance) – $15,000 (resale) = $57,400
  Net Cost: $36,900

Savings with the EV: over $19,920 over 8 years. However, it’s important for Canadian consumers to run their own numbers. Online calculators, often provided by government agencies (like Natural Resources Canada), environmental organizations, or automotive publications, can be valuable tools. These calculators allow users to input specific vehicle models, local gas and electricity prices, driving distances, and financing terms to get a more precise lifecycle cost estimate. Make sure to run your own numbers using tools from Natural Resources Canada or other trusted sources before you make your purchase decision.

Conclusion: Are EVs Worth It in Canada?

In the illustrative and simplified Canadian scenario we just discussed, the electric cars demonstrate a significantly lower lifecycle cost – over $30,000 less than the gasoline equivalent over 8 years, even starting with a higher net purchase price after initial rebates. 

While the exact figures will vary greatly based on the specific models compared, provincial rebates, local energy prices, driving habits, and insurance quotes, the trend generally holds: the longer you own an EV, and the more you drive, the more pronounced the savings become. Beyond the direct financial vehicle expenses, there are other, less tangible “costs” or benefits. Gasoline cars contribute more to local air pollution and greenhouse gas emissions, which have societal and environmental costs. The quieter ride and instant torque of electric cars also offer a superior driving experience for many Canadians.

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As always, Carnex can provide you with detailed information about buying and selling used electric vehicles in Ontario.

Carnex is the top online EV expert in Canada for buying and selling used electric vehicles in Ontario.

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