Do the finances of electric vehicles actually stack up for the average household? The answer depends heavily on how you use your car and how you charge it.
- Running costs compared to petrol
- The upfront cost challenge
Running costs compared to petrol
Home charging typically costs 7-15p per mile, compared to 15-20p per mile for petrol. For high-mileage drivers doing 15,000 miles per year, the potential saving is £1,000 to £2,000 per year. Servicing costs are also lower — fewer moving parts, no oil changes, reduced brake wear.
The upfront cost challenge
New EVs typically carry a premium of £5,000 to £15,000 over comparable petrol models, though this gap is narrowing. The used EV market now offers good examples from £15,000 to £25,000. Company car drivers benefit from just 2% Benefit in Kind tax on fully electric vehicles.
Charging considerations
Home charging is cheapest and most convenient but requires off-street parking. Those relying primarily on public rapid charging face significantly higher costs that reduce the financial advantage considerably.
Bottom line
For drivers who can charge at home and cover reasonable mileage, the switch to electric makes solid financial sense over five years. For those relying on public rapid charging or driving very low mileage, the numbers are less clear-cut.