I have now owned my new Nissan Leaf electric vehicle (EV) for exactly one month. Assuming one month’s data is enough to make a reasonable estimate of the costs (and savings) that I am incurring, I am pleasantly surprised at how cheap it is to own an EV.
To begin, I sold my seven-year-old (completely paid-for) Volvo station wagon before getting the Leaf, so my basic economic analysis will compare getting the Leaf to keeping the Volvo. Also, I chose to lease the Leaf for 39 months, so I’m only going to make the calculations for that case.
Cash Up Front: I sold the Volvo for $7,000, so that was my working capital. The down payment, tax, tags, and license for the Leaf was $5,350. I am also in the processes of installing a 220V charger (the Leaf comes with a 110V charger, which has been working just fine, but I want the faster charging) at an estimated cost of $2,000. Thus my estimated out-of-pocket cost is about $350.
Cost of Driving the Volvo: I had been averaging about 16 – 18 mpg for my normal (mostly city) driving with the Volvo. At the current pump price of $3.60/gallon (I buy low-octane gas), this gives $0.20 – $0.22/mile operating cost. Maintenance costs are hard to estimate, but assuming nothing major were to happen with the Volvo over the coming three years, I’d probably spend $250/year on just the standard maintenance (oil changes and filters and the like). This adds another $0.025/mile, so I’ll just say $0.235/mile as my working figure. Obviously, I’m purposely ignoring the reliability difference between a new car and a 7-year-old car here, since I really only want to compare a gas car to an EV, not an old car to a new one. Another way to look at it: I doubt the residual value of the Volvo after driving it for another 39 months would equal the major maintenance costs I would likely incur during that time.
Cost of Driving the Leaf: In my first month, I drove 790 miles, and averaged 3.5 miles/kWh. In Austin, the cost of electricity is currently $0.129/kWh. This makes the electricity cost per mile = $0.036/mi. There are no maintenance costs on the Leaf until the 36 month scheduled maintenance, and in particular there are no oil changes.
Cost Savings: Comparing the per mile costs, I am saving about 20¢/mile driving the Leaf over the Volvo. For my 790 mile month, that translates into $158 (money that I am not spending at the gas pump and for oil changes).
Net Cost of the Leaf: My 39 month lease has a monthly payment of $291. Subtracting the net $158 savings, my actual cost of switching to a brand new EV is $133/month. Thus, my total net costs are:
$350 down, $133/month for 39 months
Frankly, I’m shocked at how cheap that is. I can’t think of many new cars I could buy/lease for that price. Now add this to the fact that driving the Leaf is really, really cool and really, really fun. It has been a very good choice for me.
A Hypothetical Case: Suppose instead one were driving an SUV that got 13 mpg, and you drove a little more – 33 miles per day (1000 miles/month). Assuming all other numbers presented above were valid, you would actually SAVE $10/month by leasing the Leaf. Of course, if the price of gas goes up, the economics become even more compelling.
So there you have it. The Leaf makes a lot of sense. Of course, it assumes that you are a two-car family with a lot of short-hop city driving (where an EV excels). But that is probably a majority of car owners.