Gas vs. electric vehicles: What you need to know

While EV sales are increasing in Canada and across the world, there’s still a way to go before they become the new normal. A big reason behind the slower adoption of EVs is their price tag.

With new pure battery EVs starting at around $40,000, it’s true they can be more expensive than their gas-powered alternatives. Plug-in hybrids and hybrid vehicles are generally cheaper, but still cost more than comparable gas vehicles. However, for Canadians who purchase zero-emission vehicles, Government of Canada incentives are available Opens in a new window.. Qualifying vehicles include battery-electric, plug-in hybrid electric, and hydrogen fuel cell options. Some provinces also offer their own incentives, which you can combine with the federal rebate.

While EVs don’t need gas to run, they do need to be charged. Another cost most Canadian EV drivers need to consider is the installation of a Level 2 charger at home, which can range from $200 to $2,000.

Still, one of the biggest selling points for EVs, beyond their reduced emissions, is they’re less expensive to drive and maintain. For a BEV, charging costs can be a quarter of the cost of fuel for an average driver, because the cost of electricity per kilometer is much lower than gasoline.

EVs also have a simpler, more efficient drivetrain and fewer moving parts. This means your yearly service will usually just involve a tire rotation and a check-over — no oil changes, no timing belt replacements, no coolant replacement.

With the price tag for EVs and hybrids being higher on average than most gas-powered cars, finding the best financing option can help you get the keys to a new green vehicle.

CIBC can help you drive more sustainably and save money with special financing rates for electric and hybrid vehicles. With every green vehicle loan we finance through this program, we also donate $25 to the Nature Conservancy of Canada.

Learn more about CIBC green vehicle loans.

How often you’ll need to charge depends on how much you drive every day. Most EV models offer at least a 200-kilometre range on a full charge. EVs with a 350- to 400-kilometre range are starting to become more common. Some new, long-range EVs can go as far as 600 kilometres on a charge.

Home charging is the most popular way to charge an EV, using a standard wall socket or a charging station. The time it takes to fully charge an EV depends on the charging capacity and how full the battery is.

• Level 1: Often takes over 8 hours to fully charge an EV, but level 1 chargers work with almost every EV on the market and use a standard 120-volt outlet. 
• Level 2: Often takes about 4 hours to fully charge. They have the same electrical output as a clothes dryer or stove and are installed by a licensed electrician. This is the most common type for at-home charging. 
• Level 3: These charging stations are available in public settings and are the quickest way to charge a vehicle, with a full charge taking around 30 minutes. They may require additional connectors, depending on your EV.

The public network of chargers that spans across Canada continues to grow as EVs become more popular. These chargers are typically located at service stations, hotels, shopping malls and curbside in urban areas. 

Despite their high price tag, over the long run, the true cost of owning an EV can be less expensive than a gas-powered option. If you’re in the market for your next vehicle, it’s important to think about how frequently and how far you travel, which costs matter most to you and whether EV fits the rest of your lifestyle.