A new study sheds light on the ownership costs for EVs compared to equivalent ICE-powered vehicles, stating that, on average, the cost to own a new Cadillac Lyriq is just $909 more than the cost to own a new Cadillac XT5 over a five-year time period. This relatively close cost parity is despite the fact that the Lyriq’s purchase price is nearly $10,000 higher than that of the XT5. Lower fuel costs and maintenance costs are touted as responsible for closing the gap.
Vincentric, a privately held automotive data compilation and analysis firm based in Michigan, published the findings in the 2024 Vincentric US EV Cost of Ownership Analysis. The study found that of the 41 EVs examined, 20 had lower total ownership costs than gasoline-powered equivalents. The study focused exclusively on Battery Electric Vehicles (BEVs), with Plug-In Hybrid Vehicles (PHEVs) and other Hybrid Electric Vehicles (HEVs) excluded.
The study estimates the cost to purchase for a new 2023 Cadillac Lyriq Luxury at $62,990, with a total cost of ownership after five years set at $80,440. Meanwhile, the cost to purchase for a new 2023 Cadillac XT5 Premium was estimated at $51,390, with a total cost of ownership after five years set at $79,531.
The study points to significantly lower fuel and maintenance costs for EVs as neutralizing the initial price disparity between EVs and equivalent ICE-vehicles. All 41 of the EVs examined had lower fuel costs, while 37 had lower maintenance costs than their ICE alternatives. The study states that EVs offer an average fuel cost savings of more than $8,000, which can help compensate for typically higher depreciation rates.
When considering depreciation, a key factor in ownership costs, EVs generally did not fare as well as ICE vehicles, with just 10 of the EVs studied showing lower depreciation costs than equivalent ICE vehicles.
The Vincentric study also highlights the environmental benefits of driving an EV, noting that all EVs analyzed in the study generate fewer greenhouse gas emissions than their ICE counterparts over 75,000 miles during a five-year period, even when considering the emissions from electricity production. The study looked at three types of greenhouse gasses to determine the environmental cost of EVs, including carbon dioxide, volatile organic compounds, and nitrogen oxide. The study notes that the emissions created during electricity generation fluctuates based on the type of power plant in use.
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Comments
I looked seriously at this issue, and there are too many assumptions that need to be made to complete these studies. In the next 5 years:
– Will EV MSRPs go up or down?
– Will gas and/or electric costs go up or down, and if so, by how much?
– Will today’s EV standards remain in place or will new standards render current EVs obsolete, thus affecting resale value?
It’s impossible to know the answers to these questions, especially with today’s markets.
Electric rates are pretty stable and it’s a regulated industry. Let a war break out in the middle east and gas prices will skyrocket.
Rates WERE stable, but not so much anymore. Mine have gone up significantly in the past 4 years. The other thing that is a bit of a disconnect is the XT5 is premium while the Lyriq is base. Translation, XT5 gets leather, sunroof and other features that you don’t get until the Lyriq is around 80. Leather on a Lyriq is an 80 grand vehicle.
Duffus, war is in the Middle East.
I’m also guessing taxes aren’t included???? Additional EV taxes that are now being collected?
Most of these “studies” are shams anyways. They’re rigged to make the EV stand out and focus on inner city drivers who get 10 mpg out of a sedan, skewing the numbers when most people like in suburbs and get good mileage to and from work.
The data I’m hearing from coworkers/church friends is people trading in their SUV’s for Tesla sedans are spending more on their EV’s and are looking to switch back to aV8 SUV for their next car
Let war break out over Taiwan and watch the cost of battery materials skyrocket because China dominates this field. How nice. We will go from depending on ourselves or the Saudis to depending on two adversaries (the other being Russia).
Did they look at insurance? EV ain’t cheap. Did they factor in that $10k purchase price delta at 6%? Did they factor higher public charging costs, which is about equal to regular gas in most places, or just home using off peak rates?
Let’s compare to a HEV and PHEV. See how these winners shine.
Insurance also is much higher on an EV and your fuel isn’t insured 🤣 so that higher initial cost is what insurance companies are looking at. Well, that and the fact that EV’s cause more collateral damage in a crash.
I don’t know about different areas of the country, but in Western NY where I am, of my 3 Electric Vehicles, only the LYRIQ has Collision coverage, the other 2 having state minimum.
I have GEICO, and the rates that I’m being charged are very reasonable. Not any higher than an equivalent gas vehicle. Of course GEICO’s rates are much more reasonable than other companies…. The problem is you cannot have many collisions – if you get more than one in 5 year’s time seems like, they’ll drop you.
Wait lul I thought cost of ownership was to be near 20% or less with EVs. The whole point was the elimination of gas stations and maintenance?!?
A modern society needs oil refineries for all the products that the Chemical Industry produces. Gasoline is an unavoidable product of Crude Oil Cracking….
Even ICE drivers I talk to (personally for some economic reasons I drive 3 totally battery electric vehicles) seem convinced that future drivers will only drive electric cars, but I disagree.
Gas and Oil powered cars generally speaking are clean (the biggest pollutant being PLANT FOOD), and do a good job at what they do, besides being relatively easily refueled.
The only way people decide to purchase many more plug – in cars will be if they are serious about putting the States into World War III. Gas and Oil will either then be overpriced or unavailable. Stupid Idea if you ask me. The Elites can only live in their bunkers until those above ground find out where the fresh air source is for them.
Where do you live that people believe EV’s are the future? I’m in the Midwest, and maybe that’s the difference, but most people here believe diesel is the future. You can make it out of bio/crude/sythnetic and it’s cheap as gas, and is safer than gas, lithium or hydrogen (in the Ohio/missouri river vallleys, there’s lots of chemical plants, and most people use propane gas for heating as natural gas pipelines aren’t redilly available. nobody around here wants to strap a high pressure tank to the belly of their car)
Its possible that since I’ve had a very reasonable experience with my EVs, and lately people seem to be having more and more problems with engines in their gasoline vehicles (its a shame that fords are having problems at 50,000 miles, and GM is continually having cylinder disabling technology causing lifter failures – and of course the horrid recent history of CV Transmissions), that, without saying anything, people who are friends of mine are expecting EVs to be the future.
Its a bit ironic that – even though i only own 3 totally electric vehicles, I think EVs will remain a minority choice for people for decades to come, unless the price of electricity drops through the basement, (it might – solar panel cost keeps dropping, and if battery cost keeps dropping, then that helps overall electricity costs go down), that, as long as gasoline and #2 fuel oil keep being low priced, that ICE vehicles will be around. With problems in the Middle East, pricing might temporarily increase, but long term gasoline should be economical.
There is no reason to get rid of the excellent infrastructure system developed for gasoline and oil vehicles… It is so easy and so quick to refuel them – never a painful experience.
Since 80-90% of refueling EVs takes place at home, painful refueling experiences are few and far between for EV owners since the vast majority of us avoid the refueling issue the vast majority of the time.
EVs are machines exposed to the elements. Whoever told you they are completely free maintenance I would avoid buying a used one from that person EVER. If outdoor furniture and your HVAC requires maintenance a vehicle regardless of whether its electric or not does as well.
At least the brakes work in the XT5
Did they account for the $7500 rebate?
As a comparison, I have a 2023 BMW PHEV $20K more than our 2023 Lyriq. With same mileage allowance, Lyriq insurance is twice the more expyBMW.
Funny that someone would do a “thumbs down” when this is factual – $1500/6 m0nth om BMW PHEV and over $3000/6 months on Lyriq.
Not sure where this person is at, but I pay $540 per 6 months for a Lyriq Luxury 3 in Ohio.
Insurance is a very customer dependent product. He may have some tickets and be young. He may not be getting a multi-line (home/auto) discount. I pay about what you’re paying for a vette and a ctsv combined.
Have all the discounts, no tickets, exceptional driver, multi, etc. , have Vette, TBird also and they are low mileage and cheap. priced other insurance as well. Wife commutes to work in Lyriq, we got it to get car pool single stickers. It’s okay, just commenting on insurance as a factor in EVs comparing. 2 similar vehicles, one an EV on not
People’s Republic of California.
Yeah, this doesn’t exactly impress me. The whole premise of buying an EV was that the premium you pay up front will be more than made up for in the long term costs to operate it. Looks like the truth is that the best estimates are, “it depends”.
“Cadillac Lyriq 5-Year Cost Of Ownership Barely Higher Than XT5’s”
But wait, the current administration and the Main Stream Media has been telling us for 3.5 years how much cheaper it is town an EV.
Who do we believe?
A small EV is very inexpensive to run. Commercial Ford PRO Vans are low cost – sales are way up since savings are even greater than businesses were expecting….
But large vehicles like the LYRIQ, and larger vehicles such as huge pickup trucks are not necessarily that much cheaper than the ICE equivalents (provided the Gas trucks don’t have engine or transmission troubles).
Tires are not cheap when you have to replace them every 6 months in the Lyriq
Here is the comparison
https://fueleconomy.gov/feg/Find.do?action=sbs&id=46945&id=46688
In fact Lyriq saves $ 5,500 compared to an average vehicle while XT5 spends $ 4,500 and there itself you save $10,000 in 5 years and $20,000 in 10 years which means Lyriq is actually cheaper while being faster and smoother in drive.