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electric cars

Electric Car Running Costs

A new electric car will generally be more expensive to buy or lease than a petrol or diesel equivalent, but you can save money during the lifetime of using the car through reduced running costs.

Fuel

Electric cars are cheaper to run than petrol cars. Based on 2023 electricity and fuel prices, a medium or large EV costs between 8.6p to 11.1p per mile (or £694 to £900 over a year based on a typical annual mileage of 8,100 miles) for those charging their cars at home. It should cost an average of £3,985 to run an electric car for five years, compared to £6,125 to run a petrol car over the same period. Source: Which?

Maintenance

Electric cars are cheaper to service and maintain than petrol or diesel cars because they have very few components compared to conventional internal combustion engine cars. Therefore, perhaps not surprisingly, electric cars are also proving to be reliable.

Vehicle Excise Duty

Pure electric cars are charged £0 a year Vehicle Excise Duty (VED), whereas a new petrol or diesel car is charged from £140 a year.

Second hand electric cars can offer excellent value for money and can be cheaper from day one.

Company car benefit-in-kind tax

Company car drivers can save thousands of pounds per year in benefit in kind tax (BIK) by choosing an electric car, as a pure EV has just 2% BIK in 2023-2024 and 2024-2025.

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