Electric vs Petrol Cars: Lifetime Cost Comparison

Are Electric Cars Cheaper to Run Than Petrol Cars?

Electric vehicles (EVs) can help you save a lot of money compared to petrol and diesel cars. While the first cost of an EV is higher, you will spend less on fuel, maintenance, taxes, and congestion fees. This makes EVs a smarter choice for your budget in the long run.

Key Savings Areas

• Fuel Costs: Electric vehicles (EVs) are cheaper to drive each mile than petrol cars. Charging at home during the night can help you save even more money.
• Maintenance: EVs do not have a combustion engine, spark plugs, or need oil changes, so their maintenance is less and cheaper.
• Tax and Charges: Currently, EVs are not charged road tax until April 2025. They also pay lower fees for congestion charges.

For EV drivers who can charge at home, using electric cars is much more affordable.

Compare Car Insurance

Save up to £523* on your car insurance

Compare Quotes Retrieve Quote

Initial Cost: Electric Cars vs Petrol Cars

One of the main problems with getting more electric vehicles (EVs) on the road is the high initial cost of electric cars. This cost is mainly due to battery technology and the fact that not as many cars are made.

A Kia Niro EV is roughly £37,000, while the petrol version begins at about £30,000. The price gap between them should reduce in the next few years. This change will happen because battery costs are falling and production is going up.

Long-Term Running Costs of Electric vs Petrol Cars

EVs might be more expensive to buy at first. But they can help you save money over time. This is because they have lower running costs. You can save a lot on fuel, road tax, and maintenance. Plus, you can use different incentives to lower your costs even more.

Over ten years, EV owners can save £8,000 to £10,000. This is a lot more than what petrol car owners spend.

Fuel and Electricity Costs: How Much Do They Differ?

Fuel costs for petrol cars go up and down with the global oil prices. On the other hand, electricity prices are often more consistent. Charging your car at home is usually the most affordable choice.

• Drivers who charge their cars at home overnight can save money.
• They may only pay about 5 pence per kWh.
• This means electric vehicles (EVs) cost much less to drive per mile compared to petrol cars.

Maintenance Costs: Electric Vehicles vs Petrol Cars

EVs have fewer moving parts. This means you will need fewer repairs. It can save you both money and time.

Key Maintenance Savings for EVs

• You don’t have to change the oil.
• There are no spark plugs or exhaust systems that you need to think about.
• Brakes last longer because of regenerative braking.

How Long Do Electric Car Batteries Last and What Are the Replacement Costs?

Electric car batteries have really improved in recent years. They work well for EV drivers. Most new electric cars come with an 8-year or 100,000-mile warranty for their batteries. This helps you feel comfortable about your choice. A battery’s lifespan can change based on how you use it, how you charge it, and the environment where you use it.

Battery Life and Degradation

On average, an electric vehicle (EV) battery lasts around 10 to 15 years before it must be replaced. This is much longer than many internal combustion engine cars. Today’s EV batteries hold 80 to 90% of their power even after 100,000 miles. This means drivers of electric cars can count on their vehicles for daily use and long trips.

Battery Replacement Costs

Replacing an EV battery might seem costly. But prices are now lower. This is due to better battery technology.

• Replacing a battery now costs between £4,000 and £8,000 for most cars.
• The Volkswagen ID models have unique battery systems. You can change just the individual battery cells. This can help you save a lot of money, instead of replacing the whole battery unit.

Long-Term Savings

Even if replacement costs are high, most EV owners do not feel this cost while they have the vehicle. The lower fuel prices and cheaper maintenance help balance out these costs over time. This makes EVs a better choice than diesel counterparts in the long run.

Compare Car Insurance

Save up to £523* on your car insurance

Compare Quotes Retrieve Quote

Road Tax and Congestion Charges for EVs vs Petrol Cars

Electric car owners can save money. They pay less road tax. They can also avoid congestion charges.

• Road Tax: You won’t need to pay any road tax until 1st April 2025. After that, electric vehicles (EVs) will pay £10 for the first year and £190 each following year.
• Congestion Charges: EVs are not required to pay the £15 daily congestion charge in London or the ULEZ charge of £12.50 per day.

City drivers in limited areas can save a lot of cash every year.

Company Car Tax (BiK Rates): EVs vs Petrol Cars

Electric cars have lower Benefit-in-Kind (BiK) tax rates. This means they are a good choice for people who use cars from their company.

For people who make a lot of money and pay 40% in taxes, using an EV as a company car can save them a lot on taxes.

Environmental Impact: Carbon Emissions and Air Quality

EVs do not produce any emissions from their tailpipes. This improves the air quality in our communities. They also help reduce greenhouse gases.

Making electric vehicles (EVs) does produce emissions, especially for batteries. However, studies show that, in their lifetime, EVs release 30% less CO₂ compared to gas cars.

Insurance Costs for Electric Cars vs Petrol Cars

EV insurance costs have often been higher due to the need for special repairs. But now, this difference is getting smaller.

Factors Affecting EV Insurance

• The cost to change the battery
• A need for expert repair
• New electric vehicles are valued more than gas cars

Use Free Price Compare to Find the Best Car Insurance

At Free Price Compare, we help you find affordable car insurance for both electric and petrol cars. You can compare many quotes in only a few minutes. Start saving money now!

What Government Incentives and Grants Are Available for Electric Vehicles?

The UK government provides money to support drivers of electric cars. This money is meant to help them and to motivate more people to choose electric vehicles (EVs).

EV Chargepoint Grant

• Gives up to £350 to help you install a home charger.
• This is for homeowners with off-street parking.

Workplace Charging Scheme

• Helps businesses by giving up to £350 for each charging socket.
• Reduces the cost of adding chargers for employees.

Ultra-Low Emission Zone (ULEZ) Exemptions

• EVs do not need to pay the ULEZ or the London congestion charge. This can help you save up to £27.50 each day.

Company Car Tax Incentives

• Electric cars have a lower BiK tax rate of 2%.
• Petrol cars have a higher tax rate of 20-37%.
• Government help has made new electric cars more affordable for buyers.
• This support reduces the higher costs at the beginning.

How Do Salary Sacrifice Schemes Make Electric Cars Affordable?

Salary sacrifice schemes are changing how people get electric cars. This clever way allows workers to lease a new electric car. They achieve this by giving up part of their pre-tax salary.

Compare Car Insurance

Save up to £523* on your car insurance

Compare Quotes Retrieve Quote

How Does Salary Sacrifice Work?

• The monthly lease payment is taken from the total salary. This reduces both income tax and National Insurance contributions.
• Workers can save between 30% and 60% compared to normal leasing or financing methods.

Financial Benefits

• You can save money on electric car insurance, servicing, and maintenance by choosing salary sacrifice packages.
• Electric cars have a lower Benefit-in-Kind (BiK) tax. Right now, it is just 2%.
• Drivers of electric cars may also pay fewer congestion charges and get ULEZ exemptions, mainly in places like London.

Drivers of a Volkswagen ID can enjoy good savings with these plans. This can help reduce the overall cost of owning the car in the long term.

What Are the Available Charging Infrastructure and Options for Electric Cars?

The UK has rapidly expanded its EV charging stations in recent years. This growth provides electric car drivers with more options to charge their vehicles. Now, they can charge at home, at work, or use public charging stations while travelling.

Home Charging

• Cost: A home charger costs between £800 and £1,200. You can get government grants that may lower this by £350.
• Daily Use: A full charge at home usually costs around £5 to £10. It all depends on the electricity bills you have.
• Charging overnight is cheaper and is great for daily commutes.

Public Charging Options

Public infrastructure assists during long trips. This includes car parks, motorway hubs, and low emission zones. It helps new EV owners feel safe about their range worries.

Future of EV Charging

The UK plans to set up 300,000 public chargers by 2030. This plan is to help reduce the carbon footprint of cars across the country.

Is the Second-Hand Market for Electric Cars a Good Option?

The market for used electric cars has grown a lot in recent years. This provides more affordable options for buyers.

Why Consider a Used Electric Car?

• Buying a used EV is cheaper than buying a new vehicle.
• EVs have fewer parts, making them last a long time.
• Many used EVs still have battery warranties. These warranties usually last for 8 years or up to 100,000 miles.

Savings on Running Costs

• You can pay less for fuel by charging at home.
• Maintenance costs are cheaper compared to diesel counterparts.
• Buyers need to look at the battery’s health and how well it charges before they buy a used EV.
• This will help them get a good deal on their investment.

Financial Benefits of Electric Vehicles

Switching to an electric car can help you save money in several ways:

• Lower Fuel Costs: You can save up to £1,500 each year on fuel.
• Tax Incentives: You will save money on road tax and the congestion charge.
• Company Car Tax: Lower BiK rates mean electric vehicles are great for people with company cars.
• Maintenance Savings: Because they have simpler mechanics, you will need fewer repairs.
• Government Grants: The EV Chargepoint Grant helps reduce the cost of home charger installation.

Compare Car Insurance

Save up to £523* on your car insurance

Compare Quotes Retrieve Quote

FAQs About Electric vs Petrol Cars