Many Canadians are now thinking about switching from gas cars to electric vehicles. While EVs usually have a higher purchase price, they can be cheaper in the long run due to lower running costs. To make the right decision, it is important to compare the total cost of ownership instead of just the purchase price.
In this guide, we will compare EV vs Gas Car total cost of ownership in Canada for 2026. We will look at purchase price, fuel or electricity costs, maintenance, insurance, and resale value.
Purchase Price and Government Incentives
Electric vehicles generally cost more upfront than gas-powered cars. However, the Canadian government and some provinces offer incentives that can reduce the price difference.
- Many new EVs qualify for the federal EV rebate of up to $5,000.
- Some provinces like Quebec and British Columbia also offer additional rebates.
- Used EVs do not qualify for most incentives.
Because of these incentives, the price gap between EVs and gas cars has become smaller in recent years.
Fuel and Electricity Costs
This is one of the biggest areas where EVs save money.
- The average cost of electricity to charge an EV is much lower than buying gasoline.
- On average, Canadians spend $1,200 – $1,800 per year on gasoline for a regular car.
- Charging an EV at home usually costs $400 – $700 per year, depending on driving habits and electricity rates.
This means EV owners can save $700 – $1,200 every year on fuel costs alone.
Maintenance and Repair Costs
Electric vehicles have fewer moving parts than gas cars. This results in lower maintenance costs.
| Cost Category | Electric Vehicle | Gas-Powered Car | Winner |
|---|---|---|---|
| Regular Maintenance | Lower | Higher | EV |
| Brake Replacement | Lower (regenerative braking) | Higher | EV |
| Oil Changes | Not required | Required | EV |
| Battery / Engine Repair | Higher (if needed) | Moderate | Gas Car |
| Overall Maintenance Cost | Generally Lower | Higher | EV |
Overall, EV owners usually spend 30–50% less on maintenance compared to gas car owners.
Insurance Costs
Insurance for electric vehicles is currently higher than gas cars in most provinces. This is mainly because EVs are more expensive to repair and insurance companies have less data on EV claims.
On average, EV insurance can be 10–30% higher than a similar gas car. However, some insurance companies now offer EV-specific discounts.
Resale Value
Resale value plays an important role in total cost of ownership.
- Tesla vehicles generally hold their value better than most other EVs.
- Many non-Tesla EVs lose value faster, especially older models.
- Gas cars usually have more stable resale value in the used market.
This means that if you plan to sell your car after 4–5 years, a gas car might give you better returns in some cases.
Total Cost of Ownership Comparison (5-Year Estimate)
Here’s a simplified comparison of the total cost of ownership over 5 years:
| Cost Category | Electric Vehicle | Gas Car |
|---|---|---|
| Purchase Price (after incentives) | Higher | Lower |
| Fuel / Electricity Cost (5 years) | $2,500 – $4,000 | $6,000 – $9,000 |
| Maintenance Cost (5 years) | Lower | Higher |
| Insurance Cost (5 years) | Higher | Lower |
| Resale Value (after 5 years) | Moderate to Good | Generally Good |
| Overall 5-Year Cost | Usually Lower | Usually Higher |
Final Verdict: Which is Cheaper in the Long Run?
When you calculate the total cost of ownership, electric vehicles are usually cheaper than gas cars in Canada over 5–8 years. The savings mainly come from lower electricity costs and reduced maintenance.
However, EVs are not always the cheaper option for everyone. If you:
- Drive very low mileage every year
- Plan to sell the car within 3–4 years
- Live in an area with very high electricity rates
Then a gas car might still make more financial sense.
For most Canadians who drive average distances and keep their car for 5 years or more, switching to an EV can save money in the long run.
Would you like a detailed cost comparison between a specific EV and gas car model? Feel free to ask in the comments.