Gas vs. Electric Vehicles: What’s Best for Business?

As climate change has started to bear down on our planet, more people are interested in finding ways to become eco-friendly in their own lives. This can range from recycling old water bottles all the way to buying an electric car instead of a gas one. There are a lot of things to consider when going electric, though, especially if the car is for your business.

Most popular EV cars are easy to drive, save a tremendous amount of money on fuel, and they help save the environment. They are also very expensive and they must be charged every night to make sure they don’t run out of battery life in the middle of a long trip the next day. If you’re driving an EV for your business, having enough battery life for the day is even more important.

Breaking down because the car wasn’t charged enough can lead to severe business losses. We’ll do a thorough breakdown comparing gas to electric vehicles in several different categories to decide which type of car comes out on top if you’re a business owner who drives a lot for work.

#1 – Fuel Costs

If you’re looking to save money on gas in this inflated economy, buying an electric car for your business might be the best option. Gas prices are over $5 per gallon in some states. Having several of these cars to fill up if you’re running a business that does deliveries can really be devastating to your bottom line. Going electric is a major factor in saving fuel money.

It should be noted there are some expenses that come along with charging your vehicle. Buying an electric vehicle charger can cost between a few hundred dollars all the way to over $1000. This is easily offset, though, by the money saved on gasoline. Consumer Reports estimates EV cars save almost $5,000 across seven years on fuel costs.

If you own your electric vehicle for over a decade, you could save close to $10000 on gasoline across this timespan. If you buy more than one electric vehicle for your business, the savings really start to become enormous. Try to think long-term as a business owner when considering how much money you’ll save on fuel.

#2 – Vehicle Cost

One of the sticking points with electric vehicles in the U.S. is the higher price to purchase them off the lot compared to many gasoline vehicles. This trend has continued for years and is one of the reasons why the most popular EV by sales, the Tesla Model Y, is only the 17th most popular vehicle in the U.S. overall.

The average price of the Tesla Model Y is a little over $40,000, which is pretty fair for an EV. This price is still higher than many of the gasoline vehicles on the market. People should consider, though, the money they’ll save in the long run by not having to purchase gas when they buy an electric vehicle.

Other popular electric vehicles on the market include the Tesla Model 3 for an average price of under $39,000, the Ford Mustang Mach-E for under $44,000, and the Chevrolet Bolt EV for an average price of under $33,000. The Bolt is one of the most eco-friendly and pocket-friendly vehicles on the market.

If you’re a business owner who needs several vehicles, perhaps to deliver pizzas for your small restaurant, the Bolt might be the best choice to buy several of. Tesla ranks higher in popularity based on sales, but other brands are starting to catch on as electric vehicles are brought to the mainstream.

#3 – Maintenance

Another upside to buying an electric car for your business is you won’t have to pay for oil changes and other tune-ups on the engine that are common in gasoline vehicles. This can cut down $300 on average maintenance costs every year compared to owning a gasoline vehicle. When you own many vehicles for your business, this becomes even more important to think about.

#4 – Insurance

The cost of auto insurance is typically higher for electric vehicles than for gasoline vehicles. This is partly because of the lucrative parts inside the vehicles like the battery. If you’re a small business owner who needs to purchase insurance for several of these cars, try to find ways to get discounts.

Buying fleet insurance is a great idea if you have many vehicles, but it might not be great if you only have two or three. Talk to your insurance agent about the insurance policy best for your company based on how many vehicles you own and what types of drivers will be behind the wheel.

You can’t take out personal insurance policies on business cars. These policies will not protect the vehicles you own if they are being operated for the purpose of doing business. Just like with personal insurance policies, though, good driving behavior while operating your business could lead to reduced prices and discounts.

#5 – Variety of Cars and Comparing How They Look

One of the reasons electric cars may not be doing as well in sales compared to gasoline cars is there aren’t as many color options on electric cars. The exterior look of a vehicle is important for many vehicle buyers, but this might not be relevant to a business owner who only cares about the environment and the cost of the vehicle.

On the other hand, if you’re running a business where an attractive and bright car is something working in your favor, an electric vehicle will not help. Ice cream truck drivers, for example, might want to be noticed on the road. Electric vehicles are usually generic and commonly colored with shades of black, white, and gray.

There will be more colorful varieties added to the line when more people start buying them. Some states like California have banned the sale of gasoline cars by the early 2030s. This means the electric car revolution might just be more underway than you think.

Buying electric vehicles for your business could be the difference between your business growing or shrinking. Saving money on fuel is vital right now, and you can feel good about your company being eco-friendly.