It might be greener to buy an EV, but they do tend to be more expensive than a petrol or diesel car to drive off the forecourt. The cost may be putting you off, but have you considered whether driving an EV is as expensive as it seems? Once you weigh up some of the associated factors, driving an EV might be cheaper than you think.
The Cost of Fuel
Fuel is expensive and the cost is still rising. Although you have to pay a similar amount for electricity, it works out a lot cheaper to fill your car up with electricity than petrol or diesel. By the time you work out the cost of driving a new car over the average three years of ownership, you might be surprised at how much cheaper an EV starts to look.
Grants
It is still possible to get a grant to drive an EV which brings the cost down. The government offers plug-in vehicle grants which could take up to £1,500 off the cost of buying a new vehicle. They may also offer you a grant of 75% of the cost of installing an EV in your home.
Make and Model
High-end car brands have been quick to bring their EVs to the market and you will often see the headline price for a make such as Tesla or Porsche. However, as EVs become cheaper to produce and more common, mid-priced car brands have joined the competition. Peugeot, Nissan, and Vauxhall offer more keenly priced EVs, so it is worth having a look at these. It is also possible to buy second-hand now that EVs have been around for a while, and this could save you money too.
Financing
There are some fantastic financing options for EVs, and it is certainly advisable to shop around and use a car finance comparison before you decide what to buy. It might be that using a car finance comparison site will make your monthly premiums more affordable than you think.
Tax
If you have a company car, then it is taxed as a benefit in kind. Currently, you will be charged at a rate of 20% to drive a petrol or diesel car and 2% to drive an EV. This could make you a considerable monthly savings. It will also be cheaper to run in certain areas as it is exempt from city Ultra Low Emission zones tax. This cost can add up rapidly if you do a lot of city driving for work.
Part Exchange
Many people part exchange their old car as it makes the cost of buying a new one cheaper. However, as petrol and diesel cars become less popular, dealers will stop paying a premium for them and you won’t be able to get as good a deal on your part exchange for a petrol or diesel car as an EV.
EVs may be a lot more expensive than petrol or diesel cars but if you consider all the costs, they can start to look more cost-effective than you might have thought.