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Neither is automatically cheaper. A used electric car can win when its lower purchase price, reduced depreciation, and low-cost charging outweigh repairs and insurance. A new hybrid can be the better-value choice if charging is inconvenient, electricity is expensive, or the hybrid’s purchase price and resale value work out better. Compare two specific vehicles over the same mileage and ownership period; the cited studies do not provide a direct, universal verdict for this exact pairing.

What the available cost studies can—and cannot—tell you

The strongest recent evidence on used electric vehicles comes from a 2026 University of Michigan Center for Sustainable Systems study. In a modeled seven-year ownership period, buying a three-year-old midsize battery-electric SUV rather than a new midsize SUV produced about $13,000 in total-cost-of-ownership savings. The modeled savings were about $3,000 for an internal-combustion vehicle and $1,000 for a hybrid electric or plug-in hybrid vehicle. These are scenario results, not a personalized quote or a direct used-EV-versus-new-hybrid comparison. The study drew on 260,000 publicly available used listings collected from January through December 2024, five vehicle classes, 17 U.S. cities, and five charging strategies. It found BEVs had the lowest modeled TCO among used powertrains, largely because of depreciation patterns. University of Michigan Center for Sustainable Systems, 2026.

AAA’s 2026 Your Driving Costs analysis focuses on new vehicles, not used EVs paired against new hybrids. It estimated average ownership costs for a new vehicle at $12,863 per year, or $1,071.92 per month, under its methodology. AAA says changes to that methodology mean the figure is not directly comparable with its 2025 estimate. Its study assumes five years and 75,000 miles and examines selected top-selling models, so its category findings are useful context rather than a forecast for any two cars you might buy. AAA, 2026 Your Driving Costs.

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Within selected categories in AAA’s new-car study, hybrids cost less to own than comparable gasoline models. AAA also found that new EV medium sedans had about twice the depreciation of gas models in that category, contributing to annual ownership costs 29.1% higher than comparable gas medium sedans. Neither result should be projected directly onto every used EV: a used buyer may avoid part of the new-car depreciation, while a particular vehicle’s condition and resale prospects still matter.

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AAA reported EV fueling costs 66%–70% lower than traditional-gas fueling in the categories it studied. That is not an EV-versus-hybrid comparison. The analysis used assumptions of $4.152 per gallon for regular gasoline and $0.18 per kWh for home electricity; your local prices and charging mix can change the result. AAA, 2026 Your Driving Costs.

Read the two studies as evidence about cost drivers, not as competing answers to this exact question. The University of Michigan work compares used vehicles across powertrains and highlights depreciation; AAA compares selected new vehicles and shows that depreciation can offset some EV energy savings. Neither supplies a quote for your location, household, financing, or candidate cars. Even a study average cannot tell you whether a particular used EV listed at a specific price is a better deal than a particular new hybrid.

How to compare the two cars fairly

Choose the same ownership period and annual mileage for both candidates. Compare the total you expect to spend, not just the sticker price or energy bill:

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  • Purchase price, sales tax, title, registration, and dealer fees
  • Expected resale value at the end of your ownership period
  • Financing charges, using the same assumptions about down payment and loan term where possible
  • Insurance quotes for the exact vehicle and your household
  • Gasoline or electricity, based on your local prices and actual driving
  • Maintenance, repairs, and tires
  • Any charging equipment or installation you actually need

DOE identifies purchase cost, fueling, and maintenance as relevant EV cost categories. AAA’s 2026 framework also accounts for depreciation, finance charges, fuel, maintenance, repairs, tires, and license, registration, and taxes. U.S. Department of Energy EV cost methodology; AAA, 2026 Your Driving Costs.

Estimate each vehicle’s net ownership cost by adding the costs above and subtracting expected resale value. Keep the assumptions consistent: a five-year comparison should not use five years of energy for one car and seven years for the other. Do not claim a break-even year without model-specific prices, rates, and resale estimates.

Fill in a vehicle-specific worksheet

Input Used EV New hybrid
Out-the-door price Use the listing or dealer quote, including taxes and fees. Use the dealer quote, including taxes and fees.
Age, mileage, and condition Record the vehicle’s age and mileage; obtain an inspection and any available battery-condition evidence for that model. Record the vehicle’s mileage and relevant service history, if applicable.
Resale value Estimate for the specific model year and expected mileage at the end of your ownership period. Estimate for the specific model year and expected mileage at the end of your ownership period.
Annual energy cost Annual miles × model efficiency in kWh per mile × blended electricity price; add charging setup costs if needed. Annual miles ÷ model fuel economy in miles per gallon × local gasoline price.
Insurance Get a quote for the exact VIN or trim and your household. Get a quote for the exact VIN or trim and your household.
Maintenance, repairs, and tires Use estimates for the specific model; do not assume EV repairs cost nothing. Use estimates for the specific model.
Financing and time held Record down payment, APR, and ownership period. Use matching assumptions where practical.

Turn the worksheet into an apples-to-apples total

For each candidate, add the out-the-door price, financing charges, energy, insurance, maintenance, repairs, tires, and any required charging setup. Then subtract the resale value you estimate at the end of the chosen period. This gives a projected cost for that period; dividing it by the number of years or miles can help you compare scenarios, but it does not make an uncertain resale estimate precise.

Keep one set of assumptions for both vehicles wherever possible. If the EV is held for five years, calculate the hybrid over five years too. If you expect to drive the same annual mileage in each, use that mileage for both. Compare equivalent classes and practical trims where you can, since a small hybrid and a larger EV may not serve the same needs. Use transaction prices rather than advertised starting prices, and use quotes rather than broad averages for financing and insurance.

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Some figures are easier to estimate than others. The purchase quote, current energy rates, and an insurance quote can be obtained for the candidates. Future resale value and repairs are projections, so record the source and assumptions for each rather than hiding uncertainty inside one total. If an estimate is a range, calculate a low and high case for both cars. A close result should be treated as close, not as proof that one powertrain is definitively cheaper.

Estimate energy costs with your real driving and rates

For the electric car

Use the candidate EV’s efficiency and your expected charging mix. A useful calculation is annual miles × kWh per mile × blended electricity price. If you charge at home and in public, calculate each portion separately using its applicable rate, then add them. Include a charger or installation only if you need one and have a realistic quote.

The EPA’s model-year 2025 page gives 39 kWh per 100 miles as the median combined city/highway energy-consumption assumption for a typical EV. It is a broad benchmark, not the efficiency of every model or a guarantee of your consumption. Weather, speed, routes, vehicle choice, and charging conditions can make actual use differ. U.S. Environmental Protection Agency, model-year 2025 EV energy consumption.

To apply the EPA benchmark as a rough check, convert 39 kWh per 100 miles to 0.39 kWh per mile, then multiply by your annual mileage and electricity price. For example, the calculation is annual miles × 0.39 × price per kWh. This is only a benchmark illustration, not a personalized bill estimate: substitute the actual vehicle’s efficiency and your charging rates for a decision. Do not mix a home electricity rate with public charging if much of your charging will happen elsewhere.

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Charging access is part of the cost comparison as well as a convenience question. If you would need equipment or installation, include an actual quote once rather than treating it as a recurring energy cost. If no installation is needed, do not add a hypothetical charger expense. If you expect to rely on public charging, use rates relevant to the places and charging routine you would actually use; no published price applies to every buyer.

For the hybrid

Use the specific hybrid’s official fuel-economy figure and the gasoline price you expect to pay locally. Estimate annual fuel use as annual miles divided by miles per gallon, then multiply by the local price per gallon. A hybrid’s fuel costs rise with mileage too, but do not treat AAA’s EV-versus-gas savings as a hybrid comparison: its reported 66%–70% EV fueling-cost advantage applied to traditional gasoline vehicles in selected categories under AAA’s study assumptions.

Use the same annual miles for the hybrid and EV. If your driving changes substantially from year to year, use a realistic average for the period rather than choosing a high-mileage assumption for one vehicle and a low one for the other. More driving increases the amount of energy purchased by either vehicle, but the cost difference still depends on the actual efficiency figures and prices you enter.

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Why mileage, charging access, and depreciation can change the winner

Annual mileage and ownership period

Higher annual mileage makes energy-price differences accumulate faster, but it does not guarantee that the EV wins. Purchase price, financing, and resale value can outweigh fuel or electricity savings. A longer ownership period also gives operating costs more time to matter, while adding uncertainty about future resale value and repairs. Calculate both candidates for the same period rather than relying on a generic “break-even” mileage.

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Ownership horizon also affects how you should think about a used EV’s starting price. The University of Michigan’s approximately $13,000 scenario compared a three-year-old midsize BEV SUV with a new midsize SUV across seven modeled years. It is evidence that an already-used EV can look favorable in a particular modeled case; it is not a promise that the same savings will accrue over your own shorter or longer holding period, or against a new hybrid. Set the number of years you expect to keep each car before comparing.

Charging access and electricity prices

Home charging at a favorable rate can improve the EV’s operating-cost case. Frequent public charging, costly electricity, or the need to install equipment may narrow it. If you cannot charge reliably where you park, account for the time and cost of the charging routine—not just the advertised energy price. A hybrid does not require a charging plan.

There is no universal electricity-cost assumption that fits every household. AAA’s cited $0.18 per kWh was its home-electricity assumption for the 2026 analysis, not a promise about your utility rate or a price for public charging. Likewise, its $4.152-per-gallon gasoline assumption is a study input, not a forecast of what you will pay. Substitute local prices and the charging or fueling pattern you expect to use.

Depreciation and condition

Depreciation is often a major ownership expense. AAA called it the largest cost in its 2026 new-vehicle analysis, while the University of Michigan’s used-vehicle scenarios attributed much of the modeled BEV advantage to depreciation patterns. Those findings are not contradictory: the studies cover different vehicle ages and comparisons. For your decision, use the price you will actually pay and a defensible resale estimate for the same model, age, and expected mileage. For a used EV, make the vehicle’s condition and available battery information part of the purchase decision rather than assuming all examples have the same remaining value.

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Do not apply AAA’s new-EV depreciation finding mechanically to a used car. The reported roughly two-times depreciation was for new EV medium sedans compared with gas models in that category; it contributed to a 29.1% higher annual cost than comparable new gas medium sedans. A used vehicle has a different age and price history, and the University of Michigan study’s used-car result also points to depreciation patterns as a key factor. Use an end-of-period resale estimate tied to the exact model year and mileage instead of assuming either study’s average is your answer.

Insurance, repairs, and tires

Insurance belongs in the comparison because the cost can differ between two actual vehicles and households. Request a quote using the exact VIN or trim and the same coverage assumptions; a generic powertrain average cannot replace that input. If an insurer cannot quote a VIN before purchase, use the closest specific trim it will quote and label it as an estimate.

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Do not treat an EV’s energy savings as evidence that its total maintenance and repair costs will be zero. The cost framework includes maintenance, repairs, and tires for both options. Use model-specific estimates where available, account for the used EV’s age, mileage, and condition, and include tire costs for either vehicle rather than leaving them out of one side of the spreadsheet. No cited source provides a universal repair or tire-cost figure for this pairing, so a made-up average would be less useful than a transparent estimate for each candidate.

Financing, taxes, and fees

Compare financing charges as well as the amount financed. A lower advertised price does not by itself settle the cost if the down payment, APR, loan term, or fees differ. Record each actual offer and, if the terms differ, show those terms rather than silently assuming the vehicles have identical financing. Include sales tax, title, registration, and dealer fees in the out-the-door price so that a bare listing price is not being compared with a fully loaded quote.

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Account for tax credits and incentives correctly

Do not include a federal New Clean Vehicle Credit or Previously-Owned Clean Vehicle Credit for a vehicle acquired after September 30, 2025. The IRS says those credits are unavailable for later acquisitions. Some vehicles acquired on or before that date may qualify under transition rules, including requirements about when the vehicle is placed in service and other eligibility conditions. Verify the rules for the transaction rather than assuming a credit applies. State, utility, and local incentives may have separate rules and should be checked at the time you buy. IRS clean-vehicle credit guidance.

For a current purchase, do not subtract a federal credit from either candidate’s price on the assumption that one is available. If the transaction involves a vehicle acquired by the September 30, 2025 cutoff, check the applicable transition requirements and confirm whether the buyer and vehicle meet them. Incentives from a state, utility, or locality are separate questions: confirm current availability and eligibility before putting an amount in the worksheet. This avoids comparing a firm dealer price for one car with an incentive that may not apply to the other.

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A practical decision rule

  • Lean toward the used EV if its out-the-door price and expected resale value are favorable, you can charge conveniently at rates that make sense, and inspection and condition information support the purchase.
  • Lean toward the new hybrid if charging access is difficult or costly, the hybrid’s specific purchase and resale figures are stronger, or you value buying new and want to avoid the uncertainty of a particular used car.
  • Do the worksheet before deciding if the vehicles are close in price. VIN-specific insurance quotes, financing offers, local energy prices, and resale estimates can move the result more than a broad powertrain average.

AAA’s director of automotive engineering, Greg Brannon, said that comparing EVs, hybrids, and traditional gasoline vehicles within the same categories helps consumers understand how total ownership costs vary by powertrain. That category-level perspective is useful, but the used-EV/new-hybrid choice still depends on the two actual vehicles and the buyer’s circumstances. AAA, September 15, 2026.

Frequently asked questions

Is a used EV cheaper than a new hybrid?

It can be, but the cited studies do not establish a universal winner for this exact pairing. A 2026 University of Michigan study found the lowest modeled TCO among used powertrains for BEVs, largely due to depreciation patterns, but it did not directly compare a used EV with a new hybrid. Compare actual purchase and resale prices, energy, insurance, repairs, financing, and charging needs for the two candidates.

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What costs less over five years, a used electric car or a new hybrid?

There is no published universal five-year answer. AAA’s 2026 analysis uses a five-year, 75,000-mile framework for selected new vehicles, but it is not a direct used-EV-versus-new-hybrid study. Choose your own annual mileage and five-year period, then enter the specific vehicles’ purchase prices, resale estimates, fuel or electricity costs, financing, insurance, maintenance, repairs, and fees.

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Does the $13,000 used-EV saving apply to my purchase?

Not automatically. It was a University of Michigan modeled result for a three-year-old midsize BEV SUV versus a new midsize SUV over seven years. The study covered listings from 2024 across five vehicle classes, 17 U.S. cities, and five charging strategies. It is useful evidence about one set of modeled scenarios, not a guarantee or a direct comparison with a new hybrid.

Should I use 39 kWh per 100 miles to estimate my EV bill?

Use it only as a rough benchmark. EPA gives 39 kWh per 100 miles as the median combined city/highway energy-consumption assumption for a typical model-year 2025 EV. For a buying decision, use the candidate model’s efficiency, your expected annual mileage, and your home and public charging rates. Actual energy use and costs vary.

Are federal EV tax credits available for a car I buy now?

Under IRS guidance, the New Clean Vehicle Credit and Previously-Owned Clean Vehicle Credit are unavailable for vehicles acquired after September 30, 2025. Earlier acquisitions may fall under transition requirements, and separate state, utility, or local incentives may have their own rules. Verify eligibility and current rules rather than assuming a credit applies.

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Does AAA’s 66%–70% EV fueling-cost advantage mean an EV is cheaper than a hybrid to fuel?

No. AAA reported that advantage for EVs compared with traditional gasoline vehicles in selected categories, using study assumptions of $4.152 per gallon for regular gasoline and $0.18 per kWh for home electricity. It did not report a direct EV-versus-hybrid fueling comparison. Use the hybrid’s specific fuel economy and your own gasoline and electricity prices.

Frequently Asked Questions

Is a used EV cheaper than a new hybrid?

It can be, but the cited studies do not establish a universal winner for this exact pairing. Compare the actual cars’ purchase and resale prices, energy, insurance, repairs, financing, and charging needs.

What costs less over five years, a used electric car or a new hybrid?

There is no universal five-year result. Compare both candidates over the same five years and mileage, using specific price, resale, fuel or electricity, insurance, financing, maintenance, and repair estimates.

Are federal EV tax credits available for a car I buy now?

The IRS guidance cited here says the federal new and previously-owned clean-vehicle credits are unavailable for vehicles acquired after September 30, 2025. Check current rules and any separate state, utility, or local incentives.

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The Bottom Line

Bottom line: A used EV may be cheaper to own if its price and resale outlook are favorable and you can charge conveniently at a reasonable rate. A new hybrid may be the better value when charging is difficult or the specific hybrid has stronger total-cost numbers. No study cited here settles the matchup for every buyer: compare two actual vehicles over the same ownership period and mileage, including depreciation, energy, insurance, repairs, financing, fees, and any charging equipment you truly need.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.