Is it cheaper to drive an Electric Vehicle?

Most electric cars on the market are still typically more expensive than their internal combustion engine counterparts. This is largely due to the cost of the electric battery found in EV’s, however its estimated that the market price of EV’s and ICE vehicles will align within the next few years.

Despite the larger initial outlay for an electric vehicle, you can still benefit from significant cost-savings in the long-term.

Probably the largest saving you can make if you choose to drive an EV is on fuel. With petrol and diesel prices at an all-time high in the UK with no signs of the price coming down, you can be paying extortionate amounts for a full tank. Electricity is significantly cheaper when it comes to ‘fuelling’ a car.

Isn’t charging an EV less convenient?

Not only is charging your car cheaper than heading down to the petrol station, it can be more convenient. Rather than queuing up on the forecourt or being caught in the midst of a fuel shortage crisis like in the UK in 2021, you can simply head straight home and plug in, if you’re able to.

But even if you can’t charge at home, you can make the most of free charging points when you head out. Going to the office, the shops or supermarket? Then you can usually charge for free whilst you go about your day – no need to stop by for fuel on the way!

How much can I expect to spend on charging?

Let’s take the standard range Ford Mustang Mach-E as an example.

Using average energy prices in the UK, you can expect to pay between £10-£15 to recharge the battery to 80% - 100%, using a 7kw home charging unit. That’s including the recent hike in energy prices at the beginning of 2022. This would provide a range of around 248 miles.

For the same mileage of 248, it would cost around £32 for a pure petrol alternative. This is using the average mpg for a new petrol car in the UK. The figure would even higher for a similar sized diesel SUV.

If you do 10,000 miles per year, then your yearly savings could be between £680 - £880.

Of course, there are lots of variables to consider. The savings can be considerably more if you purchase a more efficient electric car, if you do more mileage, or if you use more free public charging points.

Because of the high cost of an EV battery, you could be fooled into thinking you’ll be paying more to maintain an electric vehicle. However, without a traditional engine, an electric vehicle has fewer moving parts and a much simpler drivetrain system, and therefore is less likely to need repairs and maintenance.

Components like tyres require just as much maintenance as an ICE car, but other smaller components like brake pads could even outlast the car due to the emphasis on regenerative braking used in electric vehicles.

What about EV batteries?

Research shows that batteries are more than capable of lasting over 200,000 miles, and most manufacturer warranties cover 8-10 years. However, it’s true that the battery can become less effective over time.

We recommend that you use service intervals as recommended by the manufacturer or service your vehicle as much as your traditional ICE car. However, with a much simpler system and no need for oil top ups, you should see your car returned from the garage more quickly and with less surprise costs.

You could save around £500 on road tax over 3 years when buying a Ford Mach-E compared to a petrol equivalent.

If you were to travel into the London Low Emission congestion zone once a month, you’d also save another £180 per year.

Even if you don’t travel into London, congestion charges are worth considering as cities such as Oxford, Bristol, Bath, Manchester and Birmingham have either already rolled out zero-emission zones, or will be in the near future.

What about company cars?

If you’re a company car driver, the tax savings are even more impressive. Benefit in Kind tax rates influence the amount of tax the employee is liable to pay. For electric cars, the rates start at 1%, whereas for fossil fuel cars, the rates are between 24-37%.

This can be the difference of thousands in your pocket!

Overall, there are many cost savings to be had as a driver of an electric vehicle.

With the typically higher initial outlay for an electric car, some may see their investment repaid quicker than others.

We have designed a handy tool to see if an electric vehicle would be a good decision for you based on your driving habits.

Try our electric calculator