EV ownership costs nearly £6,000 cheaper than petrol or diesel

EV drivers save nearly £6,000 over the course of ownership compared with driving a petrol car, according to a major new study.

Research by EV advocacy body Electric Vehicles UK (EVUK) shows that running an electric car will be cheaper than a petrol or diesel for more than 80% of drivers, with an average saving of £5,850.

The study looked at 50 different EVs across 480 scenarios to establish what EVUK CEO Dan Caesar called the ‘whole picture of the realities of driving electric’. He said that previous studies aimed at establishing EV ownership costs often relied on small sample sizes or narrowly focused on individual market segments.

The EVUK study looked at scenarios involving new and used EVs over four and five-year ownership terms, taking into account everything from the initial purchase and charging, to servicing, insurance, taxation, and depreciation.

It found that for buyers of brand new cars, an EV on a four-year PCP plan would save them an average of £7,785 compared with an equivalent petrol model. While EVs tend to have higher list prices, the savings on charging and other running costs contributed to the overall difference.

In fact, it found that thanks to initiatives such as salary sacrifice, which saves an average of £2,194, for a driver who can charge at home EVs were cheaper in 97% of new-car cases.

The study also found that 80% of used electric cars are cheaper than their ICE equivalent, saving EV drivers at the point of purchase as well as on running costs. According to EVUK’s data, the average used EV is £2,781 cheaper than an equivalent petrol or diesel car.

A huge part of the saving on EV ownership costs was, inevitably, linked to low-cost home charging. The research found that in 90% of all scenarios, drivers with home charging would save money. It also found that for those without at-home charging there was a 58% chance that they would still save, although the difference would be greatly reduced.

The report’s authors said the findings reinforced the need to cut costs on public charging by restructuring standing charges paid by chargepoint operators and bringing VAT on public charging in line with the domestic rate. They added that more needed to be done to support charging access for those without off-street parking, such as shared access charging and cross-pavement solutions.

James Court public policy director for Octopus EV welcomed the report’s findings. He said: “The research is comprehensive and underscores the true picture of owing an EV, they save the consumer money. EVs also drive better, offering levels of tech and comfort superior to an ICE.

“Why would anyone really want to go backwards? The UK public needs this level of comfort, from trusted voices, to help them make the switch.”

Report co-author and founder of Electrifying.com Ginny Buckley said the report shattered many myths around EV ownership. She commented: “Although the upfront purchase price of a new EV may be marginally higher in some cases, our comprehensive analysis reveals that lower maintenance and running costs can save drivers thousands of pounds over the vehicle’s lifetime.

“In today’s economy, where every pound counts, it is essential to recognise that the real cost of owning an EV is far more competitive than many car buyers realise.”