Electric Vehicle Running Costs
Owning an electric vehicle (EV) is different to owning a petrol or diesel car. A big part of the electric car cost is the electricity to charge the battery. On average it costs £15.10 to charge a 60kWh battery and get 200 miles.
Charging CostsCosts vary. Charging at home is cheaper, especially if you have a night rate. Public chargers are more expensive, up to £10.32 per 100 miles depending on the location and provider according to the Electric Car Guide.
MaintenanceElectric cars need less maintenance. Brake fluid and filter changes are less frequent than petrol cars. With fewer moving parts it may reduce long term running costs.
Taxes and IncentivesYou may find lower road tax for EVs and many areas offer EV incentives such as parking discounts or congestion charge exemptions. The exact benefits vary by location so check what applies to you.
InsuranceElectric vehicle insurance is slightly higher than traditional cars. This is mainly due to higher repair costs. Shop around and compare quotes.
Once you understand these you can calculate the total cost of ownership.
Initial Purchase and Government Incentives
When buying a new electric car you need to consider both the initial purchase costs and the financial incentives. Government schemes like the Plug-In Car Grant can make a big difference to the cost of an electric car like the Tesla Model Y and the Mercedes EQE.
Upfront Fees
The initial cost of an electric car is higher than a petrol or diesel car. Models like the Tesla Model Y or Mercedes EQE have premium price tags. These costs include the purchase price and additional fees for features and options.
Upfront costs vary by battery size, range and brand. While the initial purchase price may seem high, you need to consider long term savings on fuel and maintenance which are lower for electric cars. Some electric cars also have lower Benefit-in-Kind (BIK) rates so are more attractive for company car drivers and reduce the cost of ownership.
The Plug-In Car Grant
The Plug-In Car Grant is a government incentive to make electric cars more affordable. It subsidises part of the purchase price and can save you a lot on your new electric car. It covers many models, from high end to budget.
For example the Plug-In Car Grant can knock off several thousand pounds depending on the car. There are eligibility criteria and application process to follow but the savings are worth it. The government continues to support these schemes to encourage people to switch to zero emission cars.
Charging Infrastructure and Costs
Understanding the costs and infrastructure for charging an electric car is key. Home charging is convenient and can be cost effective, public networks offer more flexibility with different pricing options. Installing an electric car charger at home can also get you faster charging and more financial incentives like grants to offset the installation cost.
Home Charging Costs
Charging at home can be cost effective. Home charger installation costs vary depending on the type and complexity of the setup. You can find special electric vehicle tariffs which can reduce the cost even more. For example you could pay around 8p per mile when charging at home based on current rates. Charging at home means you wake up to a full battery, added convenience and savings.
Off peak rates can save you even more, so charging at night is particularly cost effective. You need to consider the initial installation cost but many find it’s offset by long term savings. Knowing your tariff and managing when you charge your car is key to minimising costs.
Public Charging Networks
Public charging networks provide infrastructure for electric car owners who need to charge away from home. Networks like BP Pulse and apps like Zap-Map help you find charging points. The cost of public charging varies widely. For example rapid chargers are more expensive, around 45p per kilowatt-hour but quicker charging.
Each network has different pricing models, some with membership plans for frequent users. You need to research and compare these networks to see which one offers the best value and convenience for you. As the infrastructure expands finding accessible and affordable options will get easier and support wider electric car adoption.
Running Costs
Electric cars have many savings but don’t forget the running costs. These include servicing and maintenance, electric car insurance and vehicle excise duty (VED).
Servicing and Maintenance Costs
Electric vehicles (EVs) have lower servicing costs than petrol or diesel cars. This is because they have fewer moving parts and therefore fewer things that can go wrong. For example you don’t need to change the oil which is a regular requirement for traditional cars.
You will still need to replace items like brake pads and tyres but less frequently. The regenerative braking system in EVs extends the life of brake pads by converting braking energy back into electricity. Regular software updates are also part of the maintenance to keep the car running efficiently.
Electric Car Insurance and Vehicle Excise Duty (VED)
Insurance costs for electric cars can vary greatly. Some insurers offer discounts for EVs as they are seen as environmentally friendly. You may find costs are higher due to the cost of repairing or replacing components like the battery.
Vehicle Excise Duty (VED) is another consideration. Most electric cars benefit from lower VED rates as they are zero emission. Currently VED rates can be as low as £0 but may increase in the future as more electric cars hit the road. You need to stay up to date with VED changes to budget accurately.
Depreciation and Resale Value
Knowing how your electric car depreciates over time is key. Depreciation is the drop in your car’s value as it gets older. Many cars lose value once they become second hand. Electric cars can have different depreciation patterns to traditional petrol cars.
Several factors affect electric car depreciation. Age and mileage play a big part. For example a car with high mileage will have lower value. Some electric cars like Mazda’s first model have seen rapid depreciation.
The original price and demand also matter. Higher priced models will drop more value. A Tesla Model 3 will lose £25,000 in value over 3 years.
Here’s a brief look at how depreciation works:
Factor
Impact on Depreciation
| Factor | Impact on Depreciation |
|---|---|
| Age and Mileage | Higher miles, lower value |
| Original Price | Expensive models can drop more |
| Demand | Stylish, popular models hold value |
Knowing these will help when you sell your car. Resale value is what’s left after depreciation. Knowing how much your car will sell for in the future will help with financial planning. Keep an eye on the market to make informed decisions. By considering these factors you can better understand the long term costs of owning an EV.
Operational Efficiency and Environmental Impact
Electric cars have unique benefits when it comes to operational efficiency and environmental impact. This section compares them to petrol and diesel cars which are powered by an internal combustion engine in terms of fuel efficiency and how they reduce emissions and therefore congestion charges in urban areas like London.
Fuel Efficiency Comparisons
When comparing fuel efficiency electric cars outperform traditional petrol and diesel cars. A petrol car might get 30mpg and a diesel 45mpg, an electric car is measured in miles per kilowatt hour (kWh). This is often much higher than miles per gallon for fossil fuels.
Electric cars convert a higher percentage of the energy from their batteries into actual miles. The efficiency is often above 80% while internal combustion engines rarely exceed 30%. This makes a big difference to running costs as the cost per mile for electricity is lower than for petrol or diesel. Plus battery technology is getting better and better.
Reducing Emissions and Congestion Charges
Electric cars produce zero tailpipe emissions which reduces CO2 emissions compared to petrol and diesel cars. This is key to improving air quality especially in urban areas. For example driving an electric car in cities like London means you’ll get exemptions or reduction in congestion charges.
The reduction in these fees can be substantial. Many cities are introducing or planning to introduce stricter emissions standards which will further encourage the use of cleaner vehicles. For example the London Congestion Charge exempts electric cars making them more cost effective for city commuting. By reducing emissions and using cleaner energy electric cars fit in with global efforts to combat climate change.
Battery Life and Replacement Costs
Electric car batteries last between 8 to 15 years. This depends on climate and how often you use the car. Regular maintenance and proper charging will help extend the battery life.
When you need to replace a battery the cost can be high. On average an electric car battery costs £7,235.07 in 2024. Specific models will vary. For example the Toyota Proace Electric and Vauxhall Combo-e Life cost around £5,462.50.
Factors Affecting Costs:
Battery Size: Larger batteries cost more.
Brand and Model: Some brands have more expensive batteries than others.
Comparison Table:
| Model | Battery Price (£) | Battery Size (kWh) |
|---|---|---|
| Audi Q8 e-Tron | Varies | Varies |
| Toyota Proace Electric | 5,462.50 | 50 |
| Vauxhall Combo-e Life | 5,462.50 | 50 |
You should consider these costs when calculating the long term cost of owning an electric car. Regular service checks and good driving habits will help your battery last as long as possible.
Hybrid Specific Costs
When looking at hybrid cars you need to understand the different costs involved. Running costs for hybrid cars will vary depending on the model and usage.
Fuel Efficiency: Hybrid cars use around 30% less fuel than conventional cars. So you can go further on a tank and save on petrol.
Maintenance: Hybrids need less maintenance than traditional cars. They have fewer mechanical parts which means lower service costs.
PHEVs: Plug-in Hybrid Electric Vehicles (PHEVs) can be charged from an external source which will reduce fuel costs even more. Charging at home is cheaper than filling up with petrol.
Insurance: Insurance for hybrids might be slightly higher than for conventional cars due to the technology involved. Shop around and compare quotes.
BIK
If you use a hybrid car for work you may benefit from lower Benefit-in-Kind (BIK) tax rates than petrol or diesel cars. This can add up to big savings over time.
Initial Purchase Price: The purchase price of hybrid vehicles like PHEVs is higher than traditional cars. But government incentives will help offset this.
In summary the upfront cost may be higher but the long term savings on fuel and tax will make hybrids cost effective.
Running Costs Comparison
Electric vs. Diesel vs. Petrol
When it comes to running costs electric cars are the most cost effective option compared to diesel and petrol cars. Here’s the breakdown:
Electric Cars: Charging an electric car can be as cheap as 3p per mile. According to the UK government the average cost to charge an electric car is £3-£5 per 100 miles. This low cost per mile is one of the reasons why electric cars are becoming so popular.
Diesel Cars: Running a diesel car is much more expensive estimated at 19-21p per mile. That’s £19-£21 per 100 miles. Diesel cars are more fuel efficient than petrol cars but still more expensive to run than electric cars.
Petrol Cars: Similar to diesel cars petrol cars are estimated at 19-21p per mile which is £19-£21 per 100 miles. Petrol cars are less fuel efficient than diesel cars which will increase the cost of running them.
Please note these costs are estimates and will vary depending on the car, driving style and electricity costs. But overall electric cars are the most cost effective option when it comes to running costs.
In addition to lower fuel cost electric cars also have lower maintenance costs than diesel and petrol cars. Electric cars have fewer moving parts which means less maintenance and fewer repairs over time. According to the UK government electric car maintenance costs are 70% cheaper than diesel or petrol cars.
So electric cars are a cost saver overall. Whether it’s the cost to charge or the maintenance cost. Simple.