The Real Cost of Owning an Electric Vehicle in 2025: Purchase, Charging, Maintenance, and Resale Value

Electric vehicles (EVs) are no longer niche toys for tech enthusiasts. By 2025 they sit in the same showrooms as petrol and diesel cars, often at similar price points – at least on the spec sheet.

But the sticker price is only the beginning. The real question most buyers care about is simple: over the years you own it, will an EV cost you more or less than a comparable gas car?

To answer that, you have to look at four big buckets: purchase price, charging, maintenance/repairs, and resale value, plus a few “hidden” factors like insurance and tax.

1. Purchase price in 2025: the gap is shrinking, but not gone

In 2025, new EVs are still typically more expensive than equivalent petrol cars, but the difference is a lot smaller than it was even a few years ago. Global data shows that while EVs often carry a higher upfront price, the total cost over the vehicle’s life is frequently lower thanks to cheaper energy and servicing.

Roughly speaking:

• Average new EV prices hover in the mid-£37,000s in many markets, compared with high-£30,000s for comparable new gas cars.
• On the used market, things get interesting: early heavy depreciation (more on that below) means you can now find 3-5 year old EVs at surprisingly low prices compared with what they cost new.

So, if you’re buying new, you often pay a premium for the battery and newer tech. If you’re buying used, you might actually get an EV for less money than an equivalent petrol car, because the first owner has already taken the depreciation punch.

2. Charging vs fuel: when electricity is cheap – and when it isn’t

On running costs, EVs are still very hard for petrol and diesel cars to beat.

Most analyses in 2025 show EV drivers saving well over £1,000 per year on “fuel” if they drive typical annual mileage and mostly charge at home. That comes from three simple truths:

• Home electricity is usually cheaper per kilometre than petrol or diesel.
• Night charging can cut that cost further.
• EVs are more efficient at turning energy into motion than combustion engines.

However, there are things to be considered::

1. Public fast charging can be pricey. Rapid chargers at motorway stations often cost far more per kWh than your home tariff. If you rely on them heavily, your savings can evaporate.
2. Tariff changes are a real risk. Some energy providers have started tightening cheap overnight EV tariffs or limiting the number of discounted hours per day, which can push charging costs up for heavy users.
3. No fuel means no fuel savings. If you drive only a few thousand kilometres per year, the fuel savings are small. In that case, paying a big EV premium up front may not pay off financially.

If you have a driveway, a home charger, and you drive a decent distance each year, electricity is still one of the strongest arguments in favour of an EV.

3. Maintenance and repairs: cheap servicing, expensive crashes

On routine maintenance, EVs are genuinely simpler and cheaper to live with:

• No oil changes, timing belts, exhaust systems, or complex multi-gear gearboxes.
• Regenerative braking means brake pads and discs often last much longer.
• Studies of fleet vehicles and service data find that routine servicing and maintenance for EVs can be 30-50% lower than for combustion cars over the first few years.

Where things flip is repairs, especially after accidents:

• When something big goes wrong (battery, power electronics, or structural damage near the battery pack), repair bills can be 30-50% higher than equivalent ICE repairs.
• Specialist training, high-voltage safety procedures, and limited repair networks keep labour costs high in many regions.

Bodywork is still bodywork, though. If someone backs into your bumper or cracks a headlight, the logic is the same: sourcing quality aftermarket parts at reasonable prices matters whether you drive a petrol hatchback or a premium EV. This is where specialist parts suppliers such as Taros Trade can help keep costs under control when you need replacement bumpers, lights, or other body components.

Overall: routine maintenance is a big win for EVs, but rare major repairs can be painful and may be part of why insurance costs more.

4. Battery replacement: the fear vs the reality

Battery anxiety has replaced range anxiety for many potential buyers: “What happens when the battery dies? Am I facing a £15,000 bill?”

In 2025, battery replacement costs for out-of-warranty packs generally land somewhere around £4,000-£15,000 for the pack, plus a couple of thousand for labour, depending on vehicle size and brand. That’s a lot of money.

But two counterpoints matter:

1. Most owners never replace a battery. Real-world data suggests only a small percentage of EVs (low single digits) need full pack replacement within the first decade, and many of those are handled under warranty.
2. Battery prices are falling. The cost per kWh of batteries has dropped sharply over the last few years and is expected to keep declining, which should gradually pull replacement costs down as well.

For a new EV bought in 2025, the realistic financial risk of paying for a full battery pack out of pocket is fairly low during the typical ownership period (say 5-10 years), especially if you choose a brand with a strong battery warranty (8 years / 160,000 km is common).

If you’re buying used and planning to keep the vehicle a long time, then it’s smart to:

• Check detailed battery health reports where available.
• Factor in the possibility of a partial or full pack replacement into your long-term cost calculations, just to be conservative.

5. Insurance, tax and other “hidden” costs

EVs often carry higher insurance premiums than similar petrol cars. Reasons include:

• Higher purchase price.
• Higher repair costs after collisions.
• Limited repair networks in some regions.

That said, as insurers gather more data and more independent repairers are trained for EV work, this gap is slowly narrowing.

On the tax side, governments are clearly shifting from “reward early adopters” to “treat EVs like normal cars”:

• Many countries that once offered generous purchase subsidies or low road tax for EVs are trimming those incentives or phasing them out.
• Some are openly planning future road-use or per-mile charges to make up for declining fuel-tax revenue.

If your decision heavily relies on tax breaks, check current local rules and how long they’re guaranteed to last, rather than assuming today’s incentives will still be there in five years.

6. Resale value and depreciation: the wild card

Depreciation is where many EV cost calculations either shine or collapse.

Recent studies show:

• Many EVs lose 50-60% of their value within the first 3-5 years, which is noticeably more than the market average and often higher than comparable petrol cars.
• Luxury EVs can be especially hard hit, because rapid improvements in range and tech make older models look outdated more quickly.

For you as a buyer, what this means:

• Buy new: You may enjoy low running costs but take a big hit when you sell in 3-5 years.
• Buy nearly new (2-4 years old): You let the first owner absorb the steepest depreciation curve. This is often the sweet spot where an EV starts looking very attractive financially.
• Keep it for a long time (8-12 years): The early depreciation matters less. Your cost per year is dominated by the initial price, energy, and maintenance, where EVs often look good.

In other words, depreciation turns EVs into a better deal for patient owners and savvy used-car buyers than for frequent upgraders.

7. Are EVs cheaper or more expensive in 2025?

In 2025, there isn’t a single answer; it depends who you are and how you use the car. But we can sketch a few typical scenarios.

EV is likely cheaper overall if:

• You drive a lot (over 15000-25000 km per year).
• You have reliable home or workplace charging on a competitive electricity tariff.
• You’re happy to keep the car at least 7-10 years, or you buy used after the steepest depreciation is done.
• You choose a mainstream model with a good battery warranty and strong service network.

EV may be more expensive overall if:

• You drive relatively little each year.
• You rely heavily on expensive public fast charging.
• You trade in cars frequently and always buy new, so depreciation dominates your cost of ownership.
• You pick a high-priced luxury EV that depreciates aggressively.