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.
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.
Vehicle Type
Average Cost (New)
Example Car Model
Electric Vehicle
£40,000 – £50,000
Tesla Model Y (£45,000)
Petrol Car
£21,000 – £30,000
Volkswagen Golf (£25,000)
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.
Cost Factor
Electric Vehicle
Petrol Car
Fuel Costs (10,000 miles)
£630 (£0.06 per mile)
£1,230 (£0.12 per mile)
Annual Road Tax
£0 (Until 2025)
£190 (Standard Rate)
Servicing & Maintenance
£143 per year
£174 per year
Congestion Charge
£0
£15/day
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.
Charging Type
Cost per kWh
Full Charge Cost (50kWh)
Charging Time
Home Charger (7kW)
£0.10 – £0.20
£5 – £10
7-10 hours
Public Slow Charging
£0.20 – £0.30
£10 – £15
10-12 hours
Rapid Charging
£0.50 – £0.70
£25 – £35
30-60 minutes
Ultra-Rapid Charging
£0.60 – £0.90
£30 – £45
15-30 minutes
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.
Maintenance Area
Electric Vehicle Cost
Petrol Car Cost
Annual Maintenance
£143
£174
Brake Pads (10,000 miles)
Lower wear due to regen braking
Standard wear & tear
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.
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.
Vehicle Type
BiK Rate (2024)
BiK Rate (2025)
Electric Car
2%
3%
Petrol/Diesel Car
20%-37%
20%-37%
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.
Vehicle Type
CO₂ Emissions (g/km)
Environmental Impact
Electric Vehicle
0
No tailpipe emissions
Petrol Car
~120 g/km
Contributes to pollution
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.
Car Type
Average Annual Insurance Cost
Electric Car
£654/year
Petrol Car
£635/year
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.
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
Charging Type
Cost
Location
Charging Time
Slow Charging
£0.20 – £0.30/kWh
Car parks, hybrid hubs
10-12 hours
Rapid Charging
£0.50 – £0.70/kWh
Motorway service stations
30-60 minutes
Ultra-Rapid Charging
£0.60 – £0.90/kWh
Highways, retail hubs
15-30 minutes
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.
Car Model
Average Used Price
Range
Annual Insurance Cost
Nissan Leaf
£10,000 – £15,000
168 miles
£400 – £600
Volkswagen ID.3
£20,000 – £25,000
263 miles
£600 – £800
Renault Zoe
£8,000 – £12,000
245 miles
£350 – £550
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.
Are electric cars cheaper to maintain than petrol cars?
Yes, EVs have fewer moving parts. This means you can save on maintenance costs. In fact, you
might lower these costs by up to 50% compared to petrol cars.
How much can I save on fuel costs with an electric car?
Drivers can save around £1,000 to £1,500 each year on fuel by using electric vehicles.
What is the average range of an electric car?
Most new electric vehicles (EVs) can drive around 300 miles on a single charge. A few models can
travel over 400 miles.
Will EV drivers pay road tax in the future?
From 1st April 2025, electric vehicles (EVs) will have to pay £10 in the first year. After the
first year, the fee will be £190 each year.
How much does it cost to charge an electric car at home?
Charging your vehicle at home usually costs around £5 to £10 for a full charge. The specific
amount you pay depends on your energy plan.
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