Tesla vs. Honda: Which Is Cheaper To Drive in Retirement?
Written by
Gabriel Vito
Edited by
Zuri Anderson
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When you’re retired, your car isn’t just transportation, it’s part of your monthly budget. With gas prices still unpredictable, many drivers are wondering if going electric would actually save them money.
Here’s how a Tesla stacks up against a Honda in real-world costs.
Upfront Cost
Start with sticker shock. The 2025 Tesla Model 3 starts around $36,990, while a 2025 Honda Accord comes in closer to $28,295.
“EVs are more expensive up front than comparable gas-powered vehicles,” said Melanie Musson, an auto industry expert at AutoInsurance.org. “But, if you’re planning to keep the car for several years, it’s likely you’ll recoup the difference in purchase price as you deal with fewer maintenance issues and less expensive electricity versus gasoline.”
Fuel vs. Charging Costs
This is where EVs start to make up ground. The U.S. Department of Energy’s Alternative Fuels Data Center said many electric vehicles consume 25 to 40 kilowatt-hours (kWh) per 100 miles, depending on size, weight and driving conditions.
If we take the low end of that range, roughly 25 kWh per 100 miles, and factor in a typical 12% charging loss as per Recurrent Auto data, that means you’ll draw about 28 kWh per 100 miles from the wall.
Over 1,000 miles, that adds up to around 280 kWh. At the current U.S. residential electricity rate of 17.4 cents per kWh, according to the U.S. Energy Information Administration, in October 2025, you’d spend roughly $49 to $50 for every 1,000 miles charging at home on the low end.
The 2025 Accord gets 29 mpg in the city and 37 mpg on the highway, or about 32 mpg combined. Over 1,000 miles, that means you’d burn through roughly 31 gallons, costing around $97 at the current national average of $3.14 a gallon, per AAA.
But wait, there’s more. The comparison isn’t a clean $55 versus $97 per 1,000 miles. EV efficiency ratings measure battery use, not total electricity drawn, and cold weather can hit range hard. AAA found that at 20°F, EV range dropped by up to 41%, while gas-powered cars typically lost 10% to 20% in fuel economy, according to FuelEconomy.gov.
Ownership Costs
EVs skip oil changes, timing belts and other common repairs that make gas cars pricier to own. The U.S. Department of Energy notes that electric vehicles have fewer moving parts and require less routine service overall.
When repairs do happen, they can be expensive. Mitchell’s 2024 Year in Review report found that repairable battery-electric vehicles (BEVs) had an average claim severity of $6,236 in the U.S., higher than the $5,066 average for gas-powered vehicles.
Those higher repair costs also drive up insurance premiums.
“Insurance for EVs is more expensive because they’re more expensive to replace and have the potential to be significantly more expensive to repair,” Musson added.
Energy Prices and Driving Habits
EV ownership math also depends on how you drive.
“If you drive short distances and around town, an EV makes more sense,” Musson explained. “But charging on the run is more inconvenient — and energy prices may increase significantly over the next five to 10 years.”
That last point matters. Residential electricity rates have climbed 13% since 2022, according to the U.S. Energy Information Administration.
The Long-Term Verdict
At the end of the day, it’s less about which car wins on paper and more about what fits your lifestyle. If you plan to keep your car for years and can charge at home, an EV like a Tesla can pay off with fewer repairs, lower “fuel” costs and no more gas stops.
If you prefer predictable costs, simpler repairs and strong resale value, a Honda remains the steadier, lower-stress choice.
As Musson summed it up, “If you want what you’re used to and comfortable with, a Honda is going to be a better option. However, if you’re willing to try something new and have the ability to pay more now, having an electric car can help you save money in the long run.”
Either way, the best car in retirement isn’t just the cheapest one; it’s the one that fits your lifestyle, budget and peace of mind.
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