New analysis shows Florida could save $277 million with a 'Total Cost of Ownership' approach to vehicle procurement

A new joint report from Advanced Energy United and the Electrification Coalition estimates up to $277 million in savings for Florida government entities when vehicles’ lifetime fuel and maintenance costs are considered. 

TALLAHASSEE, Fla., March 20, 2023 – A new report from national business association Advanced Energy United found the state of Florida could save almost $280 million by considering the total cost of ownership in vehicle procurement decisions, compared to the current practice of only considering purchase price. The report, a joint effort between Advanced Energy United and the Electrification Coalition with support from Atlas Public Policy, highlights the lower lifetime maintenance costs that ultimately make an electric fleet significantly more affordable for the state. 

The report’s findings come as the Florida State Legislature considers revisions to the selection criteria for purchasing and leasing vehicles for the state fleet and for universities, community colleges and local governments that use state purchasing plans to procure vehicles.

Among the report’s key findings are:  

• Switching the 88% of the state fleet made up of light-duty vehicles like pickups, sedans, SUVs and vans to electric vehicles could save over $18,000 per vehicle on average over 15 years.  
• Total savings from a full transition to electric vehicles would result in extrapolated savings of $277 million over that same period. 
• Electric vehicles are more cost effective in terms of maintenance and fuel expenses, providing net savings compared to equivalent internal combustion engine vehicles  in the state fleet in as little as five years.  

"Florida is already a top performer in electric vehicle adoption. This report shows that Florida's state government can also become a national leader in the electric vehicle space by adopting a total cost of ownership model when procuring vehicles for its fleets,” said Advanced Energy United Policy Principal Michael Weiss. “These savings would not only be a boon to Florida's state budget but also ensure that taxpayers' dollars are spent in the most responsible way possible."

“Florida can reduce overall operating costs by transitioning its fleet to electric vehicles,” said Electrification Coalition Senior Director of Policy Anne Blair. “That, combined with the national security and clean air benefits that EVs provide, make them a win-win for Florida.”

Read and download the report here.