Cost of Ownership for an Electric Vehicle
Total Cost of Ownership for an Electric Vehicle in Colorado
Electric vehicles (EVs) are no longer a futuristic dream — they are here, affordable, and quickly becoming the smarter choice for Colorado drivers. But before making the switch, it helps to understand what owning one actually costs long-term.
Let’s break down the total cost of ownership for an electric vehicle, from charging and maintenance to rebates and battery life, so you can see how driving electric really stacks up against traditional gas-powered cars.
What Is the “Total Cost of Ownership”?
The total cost of ownership (TCO) represents everything it costs to own and operate a vehicle over its lifespan — not just the price tag on day one.
For electric vehicles (EVs), that includes:
- Purchase price or lease cost
- Home EV charger installation
- Electricity for charging
- Maintenance and repairs
- Insurance and registration
- Battery life and potential replacement
- Federal and Colorado EV incentives
When you add it all up, EVs often deliver lower long-term costs — especially with Colorado’s strong rebates and growing charging infrastructure.
1. Purchase Price and Incentives: Colorado Leads the Way
The first thing most buyers notice about EVs is the sticker price — but that number rarely tells the full story.
Average Electric Vehicle Cost
As of 2025, the average electric car costs between $40,000 and $55,000, depending on the model and battery capacity. Compact options like the Nissan Leaf offer an affordable entry point, while premium Tesla models and Rivian trucks bring extra performance and range.
Rebates and Tax Credits
Colorado has some of the best EV incentives in the country:
- Federal EV Tax Credit: Up to $7,500 for qualifying new EVs
- Colorado State Rebate: Up to $5,000 for new purchases and $2,500 for used EVs
- Utility Rebates: Xcel Energy and other utilities offer up to $500 for installing a home EV charger
Together, that’s potentially $12,000 or more in savings, instantly reducing your total cost of ownership for an electric vehicle.
Learn how to claim EV charger rebates.
2. Charging Costs: Powering Your EV at Home and On the Go
One of the biggest benefits of owning an electric car is never needing to visit a gas station again.
Electricity vs. Gasoline
In Colorado, electricity averages about $0.13 per kWh. Most electric vehicles (EVs) use around 30 kWh per 100 miles, meaning you can travel 100 miles for roughly $4 to $5 in electricity.
Compare that to about $12–$15 in gasoline, and you can save $800–$1,200 per year just on fuel.
Charging Options
- Level 1: Standard household outlet (slow but convenient)
- Level 2: Home or public chargers that fully recharge most EVs overnight
- DC Fast Charging Stations: Add 150–200 miles of range in under 30 minutes — perfect for road trips
Colorado’s fast charging network is expanding rapidly, supported by programs like Charge Ahead Colorado and GO EV Colorado’s infrastructure initiative.
Learn more about Level 1 vs Level 2 chargers.
3. Maintenance and Repairs: EVs Simplify Everything
Electric cars have fewer moving parts, no oil changes, and no exhaust systems. Instead, they rely on electric motors and lithium-ion batteries, which require far less upkeep.
Here’s what you can forget about:
- Oil and filter changes
- Transmission repairs
- Spark plugs and timing belts
- Exhaust or muffler replacements
According to AAA, EV owners save around $950 per year in maintenance costs. That’s real money back in your pocket over the long term.
4. How Long Does an EV Battery Last?
This is the question we hear most often:
How long does an EV battery last?
Modern electric car batteries typically last 12 to 15 years, and most come with 8-year or 100,000-mile warranties.
Battery Chemistry and Longevity
Most EVs use lithium-ion batteries engineered for long life and efficiency. These batteries include advanced thermal management systems to regulate temperature and reduce battery degradation.
Even after a decade, most EV batteries retain about 80% of their original capacity, thanks to improved battery chemistry and charge cycle performance.
Replacement Costs
While replacing an EV battery can cost between $6,000 and $15,000, it’s rarely necessary during ownership. Battery technology continues to advance, reducing costs and improving performance every year.
5. Energy Efficiency and Driving Range
Today’s EVs offer impressive range and performance across a wide spectrum:
- Nissan Leaf: 150–200 miles per charge
- Tesla Model 3: 300+ miles per charge
- Ford Lightning: 230–320 miles, depending on configuration
Your actual driving range can vary with temperature, elevation, and driving style, but Colorado’s moderate climate is ideal for maintaining optimal battery performance year-round.
6. Insurance, Registration, and Resale Value
Insurance costs for electric vehicles (EVs) can be slightly higher due to the specialized components, but those expenses are offset by fuel and maintenance savings.
Colorado also offers reduced registration fees for EVs, and as more residents transition to electric, resale values are improving dramatically. Popular models like Tesla, Hyundai Ioniq, and Chevy Bolt now retain 60–70% of their value after five years — similar to or better than gas-powered cars.
7. Environmental and Lifestyle Benefits
Owning an EV in Colorado is about more than just saving money. It’s about being part of a cleaner, more sustainable future.
- Zero tailpipe emissions improve local air quality.
- Quieter operation means peaceful drives through mountain towns.
- Solar integration allows you to charge with clean, renewable energy.
And because you can charge at home, your vehicle is ready every morning — no gas station detours required.
8. 10-Year Cost Comparison: Electric vs. Gas Vehicle
That’s over $21,000 in savings over 10 years — plus the satisfaction of cleaner air and lower emissions.
FAQs: Total Cost of Ownership for an Electric Vehicle
How long does an EV battery last?
Most EV batteries last 12–15 years and come with at least 8-year warranties. Modern battery chemistry and thermal management systems help extend their lifespan.
Are electric vehicles cheaper to own long term?
Yes. While the upfront cost is higher, the long-term EV cost of ownership is lower thanks to reduced maintenance, cheaper fuel, and significant rebates.
Do EVs lose driving range over time?
A small amount — about 5–10% over several years — due to natural battery degradation. However, improvements in battery chemistry continue to minimize this.
How can I save the most on EV ownership in Colorado?
Take advantage of state and federal tax credits, install a home charger, and charge during off-peak hours for the lowest electricity rates.
Read our guide about EV charger installations.
Who do I call to install my EV charger?
Call a licensed electrician. We can’t stress enough to ensure you’re hiring a licensed electrician. Do your research, read reviews, check their website, and check with DORA to ensure they’re licensed.
The Bottom Line: Going Electric in Colorado Pays Off
When you consider the total cost of ownership for an electric vehicle, it’s clear that EVs are a long-term win — for your wallet, your home, and the planet.
Colorado’s generous rebates, clean energy initiatives, and expanding charging network make now the best time to go electric.
Ready to Go Electric?
At GO EV Colorado, we make it easy to understand your options, find local rebates, and connect with certified EV charger installers.
Explore your EV savings today and take the first step toward a cleaner, smarter future on Colorado’s roads.
