How High Do Gas Prices Need to Get Before You Buy an EV?
Sky-high gas prices are putting the squeeze on many American families.
Love can be painful. We all love our internal combustion engines, but the current gas prices make each trip to the pump painful. That creates quite a quandary for the non-sadists among us. Most people need to drive, and many of us just plain like to drive. And the vehicles we grew up driving were powered by gas or diesel. But with costs spiraling out of control some are looking for another way. Buying an EV could be that other way. Electricity isn’t free, but it is a heck of a lot cheaper right now to charge an EV than it is to fill your F-150 with a tank of gas. Is it time for you to make the switch? If not, how high do gas prices have to go before you would seriously consider it?
Before we dive in, a few caveats…
This article is not going to focus on what type of fuel might be better for the environment. Also, we’re not here to talk politics. About EVs or about gas prices. Our goal is to examine plain dollars and cents. Does it cost more or less to keep your ICE-powered truck? Is it worth it to you no matter what the cost? Or are you starting to seriously consider going the EV route in light of what is happening at the pumps?
Gas Pains
As of March 9, 2022, according to AAA the average price for a gallon of regular gas is $4.25 per gallon following Russia’s invasion of Ukraine. That is a 60 cent per gallon increase over just the last week. A year ago, that same gallon would have cost you $2.79. That is a $1.46 per gallon increase or about a 52 percent hike in just one year. Most of us did not get a 52 percent raise this year, so we are all feeling the hit. In addition, as you well know it is not just gas that is more expensive. High inflation rates have hit the cost of just about everything we consume. We need to cut costs somewhere, so is it time to say goodbye to your gas-powered truck or SUV?
Real Cost – Gas
If you drive 1,000 miles per month and your current ride gets you 20 mpg you burn 50 gallons of gas. Last year that would have cost you $139.50. As I write this, it’s $212.50. Some folks can shrug off the extra $73 per 1,000 miles. But for many, that is a significant hit, and gas prices are still trending up. It may soon cost over $100 a month more on top of the other expenses that are also increasing.
Real Cost – EV
Charging an EV is not free either. Prices can vary depending on what you pay per kWh in your home. For simplicity’s sake, we will assume 10 cents per kWh is what you pay. You can drive about 3 to 4 miles per kWh. Again assuming 1,000 miles a month driving you will spend about $25 to $33 a month to charge your ride, let’s go with $33. Compared to the $212.50 for gas switching to an EV will save you a substantial $179.50 per month.
Is that enough for you to consider going all-electric?
Other Considerations
With everything going on in the world, it is not impossible to imagine a disruption in the supply of gas and diesel. This could lead to shortages and lines at the pump. Hopefully, it never comes to this, but it has happened before and could happen again. In that case, it sure would be nice to not have to worry about going to a gas station. There could of course be disruptions to the supply of electricity as well, but at this point, it seems less likely.
Real Cost – New Vehicle
As you saw above, going with an EV instead of a gas-powered vehicle can save you a couple hundred dollars every month. Depending on the amount of driving you do and the fuel economy you currently get your actual savings could be more or less. But that being said, it would likely not make financial sense to sell a 10-year-old truck that is paid off for a $45,000 Mach-E just to save a bit at the pump. You can buy a lot of gas for 45 grand.
But if you were in the market for a new vehicle anyway. And you are trying to decide between a new F-150 XLT with the 5.0L V8 or a F-150 Lightning, does the current situation with gas prices sway your decision?
ICE Forever!
There are some folks that will have to have a V8-powered truck pried from their cold, dead hands. No matter how much gas increases they will never let go of that V8, or any ICE power for that matter. (We completely understand your passion, by the way.) Are you that person?
If so, what would you cut out of your budget to keep your V8? If gas goes to $6 dollars a gallon, what do you do? How about $7 a gallon? Is there a price point for gas that is high enough for you to say the heck with it?
EV For the Win?
As stated above charging an EV is not free. And buying an EV is certainly not free. But once you buy the vehicle it begins to pay you back every month with gas savings. If you are in the market for a new truck today and you are shopping for a $50K F-150 Lightning and an F-150 with a V8 for the same price, the EV will save you substantial money every month. At current prices, you could save over $2,000 a year. If you finance each truck for 5 years, you will have spent $10,000 more in fuel for the V8 than the EV by the time it is paid off. Is the V8 worth $10K to you?
Split The Difference
You could always hedge your bet a little bit. If you don’t need a big truck but don’t want to go full EV how about a look at the Ford Maverick? You can select a hybrid engine or the 2.0L EcoBoost. Either will give you much better mileage than you will see out of a V8-equipped F-150. Are you willing and able to downsize to realize the fuel gains? Not to mention the price of the truck itself is much lower. Or if you still need the F-150 size you can consider the PowerBoost Hybrid that will give you better fuel economy. This could be a baby step towards going full EV.
Let’s Not Overreact
Gas prices are soaring, and they will likely be higher for the rest of 2022 compared to last year. But gas prices have spiked before and (eventually) come back down. It is possible that prices will be back to the $3 a gallon range next year. So maybe you wait things out and see what happens. Don’t panic right now with the high prices. Can you weather the storm in the short term in order to keep your beloved gas- or diesel-powered truck? Or have you had enough of this nonsense and are ready to move on?
The Choice Is Yours
We are in an interesting time in our history. The push for EVs is on. Gas prices are soaring. But there are options. You can hold on to what you know and love about ICE vehicles. You can dip a toe in the water and go hybrid. Or you can go full EV. What choice will you make on your next vehicle if gas prices remain high? Let us know in the Ford Truck Enthusiast Forums.
Images: Ford
