15.06.2021

Been thinking of buying an electric car lately but still in two minds over whether you should commit to the purchase? Sure, you like the eco-friendly performance, the host of benefits and the next-generation technology that electric vehicles offer, but still, something is stopping you from making the switch.

In that case, have you considered the costs of running an electric car? Like your usual fuel engines, the cost of running an electric vehicle depends on the model, make and specific vehicle. But we'll just cut to the chase: electric vehicles are likely to cost you less over the course of ownership.

And based on fuel costs alone, they're much cheaper to run than fuel alternatives too. Factor in maintenance costs, and their cost-effectiveness nicely offsets the initially higher purchase price of certain electric models. 

Still unconvinced? We'll take a closer look at what it costs to run an electric car in more detail, along with some like-for-like comparisons for different journey types across some of The Brindley Group's most popular diesel, petrol, and electric cars. We'll even throw in some extra info on the cost of the Congestion Charge to sweeten the deal, too.

Are electric cars cheaper to buy than petrol or diesel?

The question of are electric cars cheaper to buy than petrol or diesel is a complicated one that will depend on a few factors.

Firstly, the initial cost of investment in an electric car is often more than its petrol or diesel equivalent. Long-range versions often add thousands to the initial cost. However, this cost can be somewhat lessened by using popular options like hire purchase or personal contract hire which spread the cost over several years.

The data, based on a comparison of five electric car models and their petrol equivalents bought in 2020, shows that the average total cost of buying a new electric car and driving it for just under 14 years (the average car's lifespan) comes in at £52,133. For a petrol-powered car on the other hand, doing the same would come in at a cost of £52,625.

Minus the purchase price, the annual running costs, including refuelling/recharging, insurance, road tax, MOTs, and servicing, work out at £1,742 for an electric car, which is 21% less than the £2,205 you'd forked out for its petrol equivalent.

The data also showed Vehicle Excise Duty, MOT and servicing costs are 49% lower on average than they are for their similar petrol models.

Charging vs fuelling: what costs more?

You can also save money in the long term by charging your electric car at home, which is considerably cheaper than petrol or diesel. Be wary of charging regularly using charging stations which can sometimes be pricier than filling a petrol or diesel tank, particularly on motorway journeys. Even when considering the cost of installing a wall charger, it is still cheaper to charge at home.

Servicing an electric car is also usually cheaper than a petrol or diesel car because of fewer moving parts that can wear over time.

Using an average price of 24.50 pence per kWh, it would cost approximately £15 for 200 miles of range, a huge saving when compared to petrol cars.

Generally, by charging your car at home overnight, you will save money in the long term when compared to a petrol car.

How much does it cost to maintain an electric car?

An electric car has fewer moving parts than a petrol or diesel car, but that doesn’t mean they don’t need servicing.

Due to their high torque, electric cars require high-performance tyres which cost more than standard tyres. There’s also the obvious cost of things like brakes and windscreen wipers.

However, all in all, electric cars are considerably cheaper to service simply because they take less time to service and are less likely to need replacement parts.

Road tax for electric vehicles

You might be wondering why we haven’t mentioned road tax, and that’s because it has changed and needs a little explanation.

In the past, EVs have been exempt from Vehicle Excise Duty (road tax) because of their low emissions, but this has changed in 2025.

In the first year, EVs will be charged just £10 for the year, but from the second year onwards EVs will be charged at the standard rate of £190 per year.

How much is the Congestion Charge?

Since April 2019, electric vehicles have been eligible for an exemption from both the London Congestion Charge and the Ultra Low Emission Zone (ULEZ) charge.

To qualify, electric vehicle owners must register their car with Transport for London (TfL) at a cost of £10, which will need to be renewed each year.

By doing so, such drivers will save themselves the £15 Congestion Charge charged to motorists driving within the Central London boundary between 07:00 and 22:00. Likewise, they'll also be saving themselves the £12.50 that unregistered vehicles have to pay to drive within the Ultra Low Emission Zone (which is the same area of central London as the Congestion Charge).

If you find yourself driving through this part of London frequently, then you could well avoid paying more than you have to should you opt for an electric vehicle in the near future.

Looking for more from the Brindley Group? Click here to check out all our news from the motoring world, as well as the rest of our motoring guides here. And if you’re in the market for a new car, see how we can help on our homepage.