While the initial purchase price of electric vehicles (EVs) may be higher than that of their petrol or diesel equivalents, this difference is shrinking rapidly.(1) Additionally, EVs tend to be significantly cheaper to operate over their lifespan, and numerous incentives are available to reduce the upfront cost of purchasing an EV.(2)According to the Environmental Defense Fund, the total cost of ownership for EVs is lower than that of internal combustion engine (ICE) vehicles across every category.(4) In some cases, EV owners can experience cost reductions as high as 29% when considering maintenance, fuel savings, and long-term reliability compared to petrol or diesel cars.(4) One major factor contributing to this decline is the steady reduction in battery prices, which is the largest cost component in an EV. As battery technology advances and production scales up, the overall cost of new EVs is expected to decrease even further.(1)The growing market for used EVs is another key factor making EVs more affordable. In some cases, second-hand EVs are now cheaper than their petrol or diesel counterparts.(3) Governments have also implemented various financial incentives, such as tax credits, to further reduce EVs' upfront costs. Under the U.S. Inflation Reduction Act, families can qualify for up to $7,500 in tax credits for new EVs.(2)