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Cost of an Electric Car

Cost of an Electric Car

How much does an Electric Car cost?

As of July 2023, the average price of a brand-new electric car was around £48,000 in the UK. With options extending from small city cars with minimal range, up to large premium SUVs capable of up to 300-mile range bearing a price tag of nearly £130,000.

Electric cars are generally more expensive to buy upfront than their petrol or diesel counterparts, for several reasons. Firstly, batteries are expensive to manufacture and as well as the large amounts of new technology used in electric vehicles, with visibility and safety being so important, many of these parts are far more expensive.

Production of Electric Vehicles

Another factor to consider is that while production volume of electric vehicles (EV) is generally lower than that of internal combustion engine (ICE) vehicles as EV adoption increases and we start to see mass production on an even larger scale, it’s expected production costs will decrease.

There are also a number of new Chinese brands launching lower cost EVs for the first time in the UK alongside new cars from well-established car makers, all of which are set to help make EVs more affordable.

Electric vs. Petrol: Which is cheaper?

A debate that doesn’t seem to come to an end due to ever changing fuel and energy prices, but we can look a bit deeper into the facts and figures and come to a fair conclusion that is clear for drivers.

Before we start, it goes without saying that we need to make some generalisations. Both petrol and electric cars differ both in size and efficiency, so we’re going to assume that we have a petrol car that does 40mpg and an EV that does 3.5miles per kWh. In both types, some cars will do more, and some will do less, but we feel that’s a fair middle ground for each. We’re also going to assume a typical annual mileage of 10,000 miles.

Price of Petrol

For the price of petrol, we’re going to assume a price of £1.50 per litre although again this is constantly fluctuating. For those 10,000 miles we mentioned at that 40mpg economy, which comes to £1,705 exactly.

Price of Electric

For an EV, things are a little trickier, At the time of writing, the price of domestic electricity is capped at 34p/kWh. So, if you did all your EV charging at that rate, you would spend £971.43 for those same 10,000 miles.

Savings when going electric

So, that’s a yearly saving of over £700 when switching to an EV over a petrol car!

Savings with an Electric Vehicle

So electricity is cheaper than than Petrol when it comes to refuelling or charging your car. But how else can you make savings with an EV?

Save up to 40% on your servicing: Less moving parts compared to a mechanical engine, and less labour hours due to fewer parts.
When driving an EV there is no need to pay the road fund licence.
ULEZ and CAZ compliant.

EVs are a clever way of making savings on your motoring as well as cutting down on servicing and maintenance costs.

Get an Electric Car through a Salary Sacrifice Scheme

Driving an electric vehicle (EV) can be even more affordable than petrol or diesel cars thanks to salary sacrifice. Incredibly, 90% of British motorists are not aware of the financial incentives available to them to go electric. With three out of five motorists claiming they would go electric if they were cheaper.

One of the most cost-effective ways into the world of EV motoring is through Salary Sacrifice schemes.

Drivers in 2022 saved an average of £271 per month by opting for a brand-new battery electric vehicle on a salary sacrifice scheme.
Insurance, breakdown cover and maintenance are included in some salary sacrifice schemes, as well as no deposit being required.

For example, one of the cheapest city cars available through Tusker, the MG4, is currently as little as £291 a month, enjoying tax efficiencies of £177 per month which aren’t available with leasing deals.

Paul Gilshan, CEO of the leading UK car salary sacrifice provider, Tusker, said:

“For too long, a lot of people have felt priced out of the EV revolution. This was evident from those we spoke to as part of our survey, with the majority thinking battery electric vehicles were only for those that do little mileage or those on high incomes. Salary sacrifice is nothing new but appears to be still an unknown to a lot of working people; it’s the perfect solution to drive a new electric vehicle for all, but it seems the myth is that people think they can’t drive an EV unless they are on higher salaries. Put simply, salary sacrifice makes battery electric vehicles affordable for all British motorists and is key to the UK significantly reducing transport emissions.”

A Guide to Driving Electric

Everything you need to know about driving an electric car for the first time. This handy guide covers information about charging your car as well as the differences between electric vehicles their petrol/diesel counterparts.

Find out more >>