Purchase price: EV vs. gas car in 2026
The biggest gap is still the sticker price. Budget EVs start around €23,000 in 2026 (roughly $25,000 in the US), comparable gas cars from about €17,000. That gap has shrunk noticeably over the past few years.
| Model | Starting price | Powertrain |
|---|---|---|
| Dacia Spring | €16,900 | Electric |
| VW Polo (gas) | €18,500 | Gasoline |
| VW ID.3 (58 kWh) | €35,995 | Electric |
| VW Golf (gas) | €26,890 | Gasoline |
| Tesla Model 3 SR | €40,990 | Electric |
| BMW 3 Series (gas) | €38,400 | Gasoline |
Worth knowing: Germany's national purchase bonus ended in late 2023, so there's no direct federal subsidy anymore. Tax perks and the 0.25% company-car benefit still apply. See Germany's EV incentives in 2026 for the full picture.
Running costs: electricity vs. gasoline
This is where EVs pull ahead clearly. At a typical 18 kWh/100km consumption and €0.32/kWh home electricity:
- EV, charged at home: €0.32 × 18 = €5.76 per 100 km
- EV, mix of public charging: roughly €9–11 per 100 km
- Gasoline (7 l/100km at €1.75/l): €12.25 per 100 km
- Diesel (6 l/100km at €1.60/l): €9.60 per 100 km
At 9,300 miles a year and mostly home charging, an EV driver saves roughly €800–1,200 a year in fuel costs compared to a gas car.
Maintenance: noticeably cheaper for EVs
EVs simply have fewer wear parts than combustion cars. No oil changes, no spark plugs, no timing belt – and regenerative braking means brake pads last significantly longer.
| Item | Gas car/year | EV/year |
|---|---|---|
| Oil change + filter | €150–300 | None |
| Inspection/emissions | ~€100 every 2 years | ~€80 every 2 years |
| Brakes (pads/rotors) | ~€200/3 years | ~€100/5 years |
| Total service | €400–700/year | €150–300/year |
Maintenance savings: €300–400 a year – roughly €1,500–2,000 over 5 years.
Insurance: still slightly higher for EVs
EV insurance runs about 5–15% higher than a comparable gas car on average, mostly due to more expensive repairs (high-voltage battery pack, specialized repair shops). Some insurers now offer dedicated EV rates that narrow the gap. The typical difference is €50–150 a year.
Depreciation: EVs are catching up
EVs long had a reputation for poor resale value. That's changed: modern models like the Tesla Model 3, VW ID.3 and Hyundai IONIQ 6 depreciate 35–45% after 3 years – roughly in line with combustion cars now. Used EVs are increasingly available and getting fairly valued in the secondhand market.
The bottom line: 5-year total cost of ownership
Total cost of ownership (TCO) – all costs over 5 years, 9,300 miles/year:
| Cost category | VW Golf (gas) | VW ID.3 (electric) |
|---|---|---|
| Purchase price | €26,890 | €35,995 |
| Fuel/energy (5yr) | €9,188 | €4,320 |
| Maintenance (5yr) | €2,750 | €1,100 |
| Insurance (5yr) | €4,000 | €4,500 |
| Depreciation (5yr) | −€13,000 | −€16,000 |
| Total TCO | ~€29,800 | ~€29,900 |
Bottom line: after 5 years (roughly 47,000 miles), total costs are nearly identical – and with battery prices still falling and gas prices generally rising, the math tips toward the EV over time. Drivers doing more than 9,300 miles a year, or charging mostly at home, come out ahead within 3–4 years.
Company cars: the 0.25% tax rule still applies
Employees driving a company EV in Germany are taxed on just 0.25% of the gross list price per month (versus 1% for a combustion car). On a VW ID.3 with a €38,000 list price, that works out to roughly €7,000–10,000 in tax savings over a typical ownership period, depending on your tax bracket.
Frequently asked questions
At what point does an EV actually pay off?
At 18 kWh/100km consumption, €0.32/kWh home charging and 9,300 miles a year, even an ID.3 breaks even against a gas Golf after about 5 years. Higher annual mileage means a faster break-even.
How expensive is replacing the battery?
Most manufacturers guarantee at least 70% capacity for 8 years/100,000 miles. A replacement costs €5,000–12,000, but in practice, actual replacements are rare. Degradation after 10 years typically sits at 10–20%.
Is there still government funding for EVs?
Germany's national purchase bonus is gone (since late 2023). What remains: the 0.25% company-car tax rule, KfW funding for chargers paired with solar, various state programs, and manufacturer lease deals. See Germany's EV incentives in 2026.
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