Nissan LEAF is Cheaper Than a Free Hummer, Math Explained
Thomas Crummett comments, doing the math on LEAF price vs a free Hummer under our discussion at SF Bay Area LEAF Owners group.
Depends on how you look at it. MSRP is rarely a useful metric. When people ask me why I bought an electric car, I tell them it's cheaper than a free Hummer. Most people are quick to figure it out, but I do get some very confused expressions. "How can a $30,000 car be cheaper than free?" Well, it comes down to the Total Cost of Ownership (TCO). Gas isn't free. At an average of 12k miles per year, and $4/gal for gas, that Hummer will use about $18,000 in fuel alone. Add that to the $7500 federal, and $2500 state tax rebates, and you're looking at a price delta of $2000. Given the Leaf also doesn't need oil changes every 3000 miles, you're looking at another ~$2000 in oil changes, assuming you don't self-service. That's just after 5 years. Average car ownership is 7 years.
I think BEVs are already cheaper than ICE.
Edit: Not fair to assume the Leaf only recharges for free. Using the EPA rated efficiency, and average electric price, the Leaf will use about $1400 in electricity over 5 years. As with all things, locations will vary, and affect prices.