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Do EVs Cost Less to Operate than Gas-Powered Vehicles? | RTA Resources

Written by Marc Canton | Dec 17, 2024 10:11:36 PM

Organizations start with big plans to convert their entire fleet to EVs, talking about how they will save money and the planet. But when they see the actual numbers—the higher upfront costs, the steeper depreciation, the infrastructure investments—they usually pump the brakes pretty hard. They realize EVs actually cost more to operate. 

They often pivot to "maybe we'll start with the admin vehicles." And that's okay. Better to have a realistic plan you can execute than an ambitious one that falls apart.

The problem is there's a lot of confusion and misconception about what it means to transition to EVs. To help, we’ve outlined some of the most overlooked costs that fleet managers need to consider when they’re having a tough budget conversation with leaders. 

The information in this article is based on a two-part episode of The Fleet Success Show podcast:

 

 

1. The Overlooked Expense: Infrastructure: 

 

Your charging infrastructure will be one of your biggest challenges, both operationally and financially. And you can't skip this part.

It’s not just about buying some chargers and plugging them in.

First, you need to figure out if your facility can even handle the power load.

For many fleets, this work might include:

  • Major electrical upgrades to your buildings
  • Possibly new transformers
  • Complete rewiring of your facilities
  • And sometimes, extensive coordination with your utility company (which can take months or even years)

Here's How Scale Changes Everything:

If you're running a smaller fleet with predictable routes—let's say administrative vehicles that return to base every night—you might get away with Level 2 chargers and minimal infrastructure changes. 

But the moment you start talking about larger fleets operating around the clock, faster, more expensive chargers are necessary to minimize vehicle downtime, driving up infrastructure costs.

Fleets operating across multiple locations face compounded costs, as charging stations must be installed at several sites to ensure accessibility. And remember—each site needs its own infrastructure assessment and upgrades.

Here's what really catches people off guard: future-proofing. 

The technology is evolving so quickly that what seems like adequate infrastructure today might be obsolete in five years. Some fleets might install what they thought was an oversized conduit, only to find out months later they needed 10 times that capacity for new charging technology.

The bottom line? 

You need a comprehensive infrastructure plan before—not after—you order your first EV. Otherwise, you're setting yourself up for some very expensive lessons.

2. The Need for Larger Fleets

For a round-the-clock operation, you can't just swap one diesel bus for one EV. You might actually need to double your fleet to maintain the same service level. Think about it: while one bus is charging, you need another one running the route. 

Even with fast-charging technology, EV charging takes significantly longer than refueling conventional fuel vehicles (CFVs). This disparity is especially problematic for fleets that rely on continuous operations, such as emergency services, delivery companies, or public transit systems.

Acquiring additional EVs to offset charging downtime compounds the financial burden of an already expensive transition.

3. Limited Availability 

Here's the reality—if you're running anything beyond basic passenger vehicles, you're going to find your options are pretty limited right now.

Say you're running a utility fleet with those aerial trucks—you know, the ones where workers go up to fix power lines. In a conventional fuel vehicle, you can build that on a one-ton truck chassis. But when you try to go electric? The battery weight alone might force you up to a two-ton chassis. Now you're dealing with different driver licensing requirements and operational constraints—it gets complicated fast.

And that's assuming you can even find an electric version. The truth is that viable EV alternatives don't exist for large chunks of the medium and heavy-duty space. We're not talking about "hard to find" or "doesn't exist."

So what are fleets doing?

 We're talking about:

  • Complete vehicle teardowns
  • Custom engineering work
  • Specialized components that can be hard to source
  • Complex integration of new systems

What happens to your warranty? What about resale value? These aren't just theoretical concerns—they directly impact your total cost of ownership.

4. Depreciation 

How many times in your life have you bought a 10-year-old battery? Never, right?

Even if your EV costs exactly the same as its conventional counterpart today (which it usually doesn't—it's typically more expensive), you'll still take a bigger financial hit down the road.

Chevy Spark: A Case Study in Depreciation 

 

A detailed comparison highlights how depreciation impacts the EV version of the Chevy Spark versus its CFV counterpart over a decade:

  • Annual Mileage of 15,000 Miles: The CFV Spark retains 22% of its value, reselling for $3,300 after 10 years, while the EV Spark retains 14% and resells for $3,900. However, the EV Spark’s initial purchase price of $27,000 means its total depreciation cost ($23,000) is more than double that of the CFV ($10,600).
  • Lower Mileage (5,000 Miles Annually): The disparity grows for fleets with lower usage. Over five years, the CFV Spark retains 50% of its value (costing $6,400 in depreciation), while the EV Spark retains only 30% (costing $18,616).

The issue isn’t confined to small vehicles. In medium and heavy-duty segments, the acquisition costs for EVs remain consistently higher. For instance, the base-level Ford F-150 Lightning Pro starts at $70,000, far outpacing comparable CFV trucks. This higher initial cost leads to greater depreciation over the vehicle's lifespan.

Limited options for factory-built EVs often push fleet managers toward costly aftermarket conversions. 

5. Specialized Technicians 

"EVs don't need maintenance." Look, while it's true you won't be doing oil changes anymore, the maintenance reality is more complicated than most people realize. In fact—and this might surprise you—your maintenance costs typically go up before they go down when you add EVs to your fleet.

Your basic preventive maintenance doesn't disappear—you still have cabin filters, HVAC systems, and tires. 

Speaking of tires—these vehicles are significantly heavier than their conventional counterparts because of those batteries. You're looking at faster tire wear in many cases.

 

The new stuff you need to deal with:

  • New diagnostic equipment
  • Possibly stronger lifts because these vehicles are heavier
  • And your technicians? They need entirely new training

These aren't just vehicles anymore—they're basically computers on wheels. When something goes wrong, you're often dealing with software issues as much as mechanical ones. Your technicians need to be part programmers now.

Most fleets see their maintenance costs increase initially. Why? You're running a mixed fleet now—you need tools and training for both types of vehicles. Your labor rate typically goes up because you're absorbing all these new costs. Plus, finding qualified technicians who can work on EVs? That's a whole other challenge.

The bottom line: Plan for maintenance evolution, not elimination. And make sure you've got a solid training and tooling strategy before that first EV arrives at your shop.

EV Mandates vs. Reality

 

You've got your mayor or governor saying, "We'll be zero emissions by 2035," and you have to figure out how to make that happen. You're not being a naysayer by pointing out real operational and financial challenges. 

Most of these leaders actually want the same thing you do - they just might not understand what it really takes to get there.

  • Yes, there are tax credits and incentives that can help offset those higher upfront costs.
  • But they don't solve everything - you still need the infrastructure, the training, the tools.
  • And sometimes, the timeline just doesn't match what's actually possible with today's technology.

What You Can Do About It? 

 

Your job is to make sure your fleet serves your community reliably while being a good steward of both public resources and the environment. That means being transparent about:

  • What's possible now
  • What needs more time
  • What it's really going to cost
  • What environmental benefits you can actually deliver

Remember, you can absolutely support environmental goals while still being realistic about how to get there. Sometimes that means starting with plug-in hybrids as a bridge strategy. Sometimes it means focusing first on areas where EVs make the most environmental and operational sense. The key is having the data to back up your plan and being clear about what you need to make it work.

Our Team Can Help You Avoid Costly EV Mistakes

Switching to EVs comes with challenges, but we can help. Schedule a consultation with our fleet experts to create a clear, customized plan, understand the full costs, and explore practical solutions for integrating EVs into your operations while staying on budget and meeting your goals.