How Much Does it Really Cost to Run an Electric Car?

Despite no longer being exempt from Vehicle Excise Duty (VED), there are still road tax advantages for electric cars. EVs with zero-emissions are currently offered the lowest first-year rate of just £10, before raising in their second year to the standard rate of £200 per annum. This helps to reduce the initial outgoing costs in the first year of owning an electric vehicle.

There are several other road tax incentives to having an electric car in the UK, including the EV Charge Point Grant for those with on-street parking at home. For those who drive in cities with low emission charge zones, you can also benefit from fee exemptions. *

Electric car charging cost varies depending on where and when you are charging your vehicle. Charging your EV at home is often the cheapest and most cost-effective charging option costing between 2p and 8p per mile, depending on your energy tariff and whether you charge during peak or off-peak periods. Comparatively, petrol vehicles currently average about 19p per mile to run. Public charging is also readily available across the UK, often costing around £26 for a full charge at a supermarket or car park.

If you want to learn more about fuelling costs for electric vehicles, click here.

As one of the most expensive parts of an electric vehicle, electric car batteries are designed to last anywhere from 10 to 15 years. Depending on their size and capacity, electric car batteries can cost anywhere from £5,000 to over £15,000. As electric car technology has advanced and improved greatly since it was first introduced, batteries now have the potential to last even longer than the average period a person keeps their car for.

Electric cars are still more expensive to insure than petrol or diesel vehicles, with the average electric car insurance cost coming in at around £511 per year, compared to the average petrol insurance costing £393 per year. This price gap can be largely explained since electric vehicles are more expensive to buy, making their repair and replacement costs higher. With the rising popularity of electric cars and increased data availability, the cost of electric car insurance has started falling in recent years.

Despite higher costs in initial purchase and insurance, electric cars do have the advantage of being less costly to service than a petrol or diesel car, simply because they have fewer moving parts. The absence of oil systems, spark plugs and exhausts reduces the number of potential issues with fewer items that would require regular maintenance or replacement. The total lifetime maintenance costs of an EV are therefore lower than petrol or diesel vehicles, offering a significant financial benefit. Usual car running costs, such as oil changes, as well as regular maintenance and servicing are often around 50% less than a traditional combustion engine vehicle.  

Despite the average cost being higher for new electric car and insurance, daily running costs are often much lower, with drivers saving anywhere between £600 and £1,500 on fuelling when charging at home. Driving electric therefore comes with its own financial advantages, especially with fuel prices rising (you can read our blog on this here).

If you’re ready to make the switch to electric, browse our wide range of used electric vehicles using the button below. Or, you can browse our Greenhous brand pages to explore their electrified powertrain options.

* For drivers in London that go through ULEZ (ultra-low emission zones), you need to apply for a Cleaner Vehicle Discount as proof of fee exemption.