Despite Fees, EVs Offer Long-term Savings For Michigan Drivers

Michigan's new EV registration fees have skyrocketed, but are drivers still saving in the long run? Let's break it down.

In this article, we'll cover why Michigan increased the EV registration fee by 63%.  We'll also cover how much money, on average, a Michigander saves by driving an EV after this registration hike compared to a gas combustion vehicle.

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How much will the EV registration cost increase in Michigan?

Some electric vehicle owners could see registration costs up to $400, according to MLive.

EV registration will cost an additional $100 annually, or an 63% increase, bringing the fee to $260 before accounting for the standard vehicle registration cost. Combined, this could cost some owners more than $400.

 

To put this in perspective.  It would cost you between $125 and $150 to register a 2025 Chevy Equinox that is powered by gasoline. A 2025 Equinox EV registration fee will be a minimum of $260 next year.

Why did Michigan increase the EV registration fee?

Michigan GOP leaders say that this is to make road funding fair.  The state of Michigan currently uses a percentage of gasoline sales to fund road repairs and updates.  This is the state's way of making sure EV drivers pay their fair share toward road funding, since EVs also use Michigan roads but do not use gasoline.

How much can a Michigan resident save each year by driving an EV instead of a gas vehicle?

Fuel Savings (Electricity vs Gasoline)

The answer to this question is surprising and has important factors. It will depend on how much gas and electricity cost where you live and how many miles you drive.  For example:

If you drive 15,000 miles a year, gas is $3.30 a gallon, and electricity is 20 cents per kWh.  You would save $1,084 a year on fuel.

Maintenance Savings (EV vs Combustion)

An EV drivetrain only has about 20 moving parts compared to over 2,000 in a gas guzzling car.  More moving parts mean more maintenance.

An EV has no radiator, no transmission, and no oil.  So, regular maintenance like oil changes or transmission flushes is no longer a part of your life.

Electric vehicles also have much longer-lasting brakes.  EVs can slow to a complete stop by letting off the accelerator.  You rarely touch your brakes in an EV.

By most estimates, you're saving around $5,000 in maintenance costs over the life of your car by driving an EV.

Total savings driving an EV compared to a combustion vehicle in Michigan?

Total savings over 15 years, combining fuel and maintenance, are estimated at $20,860.

Now that Trump killed the EV tax credit, on average, EVs cost around $6,000 more than the same model using gas.  Plus an extra $110 a year in registration fees comes to $1,650 over 15 years.

Total estimated savings over 15 years driving an EV in Michigan: $13,210.

That doesn't factor in the amount of time you save yourself by fueling at home (no longer stopping at a gas station), no more oil changes, and less maintenance in general.