Electric vehicles cheaper to own than petrol cars

New research from Direct Line has revealed that electric vehicles are now on average £107 cheaper a year to own than petrol cars.

According to the analysis, in 2020, the average lifetime running costs for an electric car is £52,133 (including purchase price), while an equivalent petrol model is £53,625. This means that, on average, an electric vehicle would cost the owner £3,752 a year over the course of its life, compared to £3,858 for a petrol car, resulting in an annual saving of £107.

The lifetime cost saving is despite the average zero-emission model costing around £5,000 - or 22 per cent - more than a comparable model with a petrol engine. This is including the £3,000 subsidy eligible for sub-£50,000 zero-emission cars though the government's Plug-in Car Grant.

SMMT figures show that 30,957 battery electric cars had been registered by the end of June, which is almost 160 per cent higher than sales in the first six months of last year. Last month, pure electric cars accounted for six per cent of all motor sales, as the market continues to shift in favour of alternative-fuel vehicles.

Neil Ingram, head of motor product at Direct Line, said: “It is an exciting time for electric vehicles, with a record number of these licenced cars on Britain’s roads last year. Our analysis also shows that with the ban on new non-electric cars set to come into force in less than 15 years’ time, Britons could already be saving money by switching from a traditional petrol or diesel car to an equivalent electric model.

“We expect prices to come down in future, thanks partly to the government’s commitment to making greener vehicles more accessible but also to advances in technology ensuring that purchasing, refuelling, maintaining and insuring an electric car becomes easier, cheaper and better for the environment.”