EV Leasing: How Much Can You Save on Fuel?
Electric vehicles are taking over—and for good reason. Beyond the environmental benefits, EVs can save you serious money on fuel.
But how much will you actually save? Let's break down the real numbers.
The Fuel Savings Math
The average American drives about 13,500 miles per year. Here's what that costs in fuel:
Gas Vehicle (30 MPG at $3.50/gallon):
13,500 miles ÷ 30 MPG = 450 gallons
450 gallons × $3.50 = $1,575/year
Electric Vehicle (3.5 miles/kWh at $0.13/kWh):
13,500 miles ÷ 3.5 = 3,857 kWh
3,857 kWh × $0.13 = $501/year
Annual Savings: $1,074
Over a 3-year lease, that's $3,222 in fuel savings alone.
Factors That Affect Your Savings
Your actual savings depend on several factors:
Your Old Car's MPG
The worse your previous car's fuel economy, the more you'll save. Switching from a 20 MPG SUV to an EV saves more than switching from a 40 MPG hybrid.
Gas Prices in Your Area
Higher gas prices = bigger EV savings. In California where gas regularly hits $5+, EV savings are enormous.
Electricity Rates
Most of the US pays $0.10-$0.15 per kWh. But rates vary widely. Check your electric bill for your actual rate.
How Much You Drive
More miles = more savings. If you drive 20,000 miles per year, your fuel savings multiply accordingly.
Home Charging vs Public Charging
Home charging is cheapest. Public fast chargers can cost $0.30-$0.50 per kWh, significantly reducing savings.
Real-World Savings Examples
Here's what different drivers might save annually:
Driver ProfileGas CostEV CostAnnual SavingsAverage (13,500 mi, 30 MPG)$1,575$501$1,074Commuter (20,000 mi, 25 MPG)$2,800$743$2,057SUV Owner (15,000 mi, 20 MPG)$2,625$557$2,068Hybrid Owner (13,500 mi, 45 MPG)$1,050$501$549Even hybrid owners save money going electric—just less dramatically.
Beyond Fuel: Other EV Savings
Fuel isn't the only place you'll save:
Maintenance EVs have fewer moving parts. No oil changes, no transmission fluid, no spark plugs. Brake pads last longer thanks to regenerative braking.
Tax Incentives Federal tax credits up to $7,500 for new EVs (income limits apply). Many states offer additional rebates.
HOV Lane Access Many states let EVs use carpool lanes regardless of passengers—a huge time saver in traffic.
Reduced Registration Fees Some states offer discounted registration for EVs.
The Lease Advantage for EVs
Leasing an EV has unique benefits:
Capture Tax Credits If you don't have enough tax liability to use the federal credit, leasing lets the dealer capture it and (usually) pass savings to you through a lower payment.
Technology Improves Fast EV range and charging speeds improve every year. Leasing lets you upgrade to better tech every 2-3 years.
Avoid Battery Degradation Concerns Worried about battery life after 8+ years? With a lease, you return the car before it's an issue.
Try Before You Commit Not sure if EV life is for you? A lease lets you experience it without long-term commitment.
Is an EV Lease Right for You?
An EV lease makes sense if:
You have home charging capability (or reliable workplace charging)
Your daily driving is within the EV's range
You want lower fuel costs starting immediately
You like having the latest technology
An EV lease might not be ideal if:
You regularly take long road trips to areas without charging
You don't have reliable access to charging
You drive significantly more than the lease mileage allows
Track Your Savings
Once you're in an EV, it's satisfying to track how much you're saving versus your old gas car. Seeing "$1,200 saved so far" validates your decision and makes every drive feel like a win.
The Bottom Line
EV leasing offers real, significant fuel savings—typically $1,000-$2,000 per year for average drivers. Combined with lower maintenance and potential tax benefits, the financial case for EV leasing is strong.
Just make sure you have reliable charging access and that an EV fits your driving lifestyle.
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