For drivers with a driveway or garage, an electric car is substantially cheaper to run than an equivalent petrol model — roughly 8–12 pence/mile cheaper once fuel and servicing savings are combined. Over 10,000 miles/year, this represents savings of £800–£1,200 annually.
For drivers reliant on public rapid charging (70–80p/kWh), the fuel cost advantage largely disappears and EVs can actually cost more per mile to charge than petrol. The case for an EV depends heavily on your charging situation.
Fuel and electricity costs are the starkest difference between the two powertrain types. The comparison depends on where and how you charge.
A typical EV uses approximately 3.5 miles per kWh (real-world, mixed driving). At 10,000 miles/year:
Relying primarily on public rapid charging makes EVs more expensive per mile than petrol. The economics of EVs rely fundamentally on home charging.
At 155p/litre and 40mpg (a typical modern efficient petrol car): approximately 17.6p/mile. At 35mpg: approximately 20p/mile. At 30mpg (older or larger engine): approximately 23p/mile.
| Charging / fuel scenario | EV cost/mile | Petrol cost/mile |
|---|---|---|
| Home (off-peak tariff) | ~2p | ~18p |
| Home (standard tariff) | ~7p | ~18p |
| Mixed (80% home std / 20% rapid) | ~10p | ~18p |
| All public rapid charging | ~21p | ~18p |
Electric cars typically cost 15–25% more to insure than equivalent petrol models in 2026. Contributing factors:
Petrol equivalent (e.g. Volkswagen Golf petrol): ~£750/year
Electric equivalent (e.g. Volkswagen ID.3): ~£920/year
Annual insurance premium difference: ~£170/year
The gap is narrowing as EVs become more common and the repair ecosystem matures — expect parity within 5–7 years for mainstream models.
EVs have significantly lower servicing costs than petrol cars — one of their most underappreciated advantages. The reasons:
| Service type | EV annual cost | Petrol annual cost |
|---|---|---|
| Routine servicing | ~£150–220 | ~£200–350 |
| Brake replacement (averaged) | ~£30–60 | ~£100–150 |
| Tyres (same for both) | ~£150–250 | ~£150–250 |
| Unexpected repairs | ~£100–200 | ~£250–400 |
| Total annual estimate | ~£430–730 | ~£700–1,150 |
EVs do use tyres faster than petrol cars of the same size — the additional battery weight and instant torque delivery causes greater wear. Budget similarly for tyre replacement.
VED (road tax) from April 2025: Zero-emission cars are no longer exempt. Both EVs and petrol cars pay the standard rate of £195/year for cars registered after April 2017.
Additional VED notes:
For company car drivers, the tax incentive for EVs is substantial. A petrol company car might attract 30% BIK on its P11D value, costing a higher-rate taxpayer thousands per year in additional income tax. An equivalent EV at 2% BIK can save £4,000–£8,000/year in company car tax for a higher-rate payer — easily outweighing any purchase premium. This is the single most financially compelling reason to choose an EV if you receive a car as part of your package.
EV depreciation has historically been faster than petrol, driven by rapid technology improvements (making older EVs seem outdated) and concerns about battery longevity. The market is maturing:
For new car buyers, petrol residuals remain generally stronger than EV equivalents in 2026, though the gap is closing. For used car buyers, the EV market now offers good value — particularly 3–5 year old mainstream models where battery degradation is minimal (typically less than 5% capacity loss over 100,000 miles for modern battery chemistry).
Comparing a mid-range EV versus a mid-range petrol car, both owned outright (excluding finance), at 10,000 miles/year:
| Annual cost | EV (home charging) | Petrol (40mpg) |
|---|---|---|
| Fuel / electricity | £686 (standard) / £200 (off-peak) | ~£1,761 |
| Insurance | ~£920 | ~£750 |
| Road tax (VED) | £195 | £195 |
| Servicing and maintenance | ~£580 | ~£900 |
| Depreciation (approx) | ~£2,500 | ~£2,200 |
| Total annual cost | ~£4,881 (std) / £4,395 (off-peak) | ~£5,806 |
| Per-mile cost | ~49p (std) / 44p (off-peak) | ~58p |
EV advantage with home charging (standard tariff): approximately £925/year or 9 pence per mile. With an off-peak tariff: approximately £1,411/year or 14 pence per mile.
If an EV costs £8,000 more to buy than a petrol equivalent, and saves £1,000/year in running costs (home charging, standard tariff):
With an off-peak EV tariff (saving ~£1,400/year): break-even at approximately 5.7 years.
For high-mileage drivers (15,000+ miles/year), the fuel savings scale proportionally — break-even comes earlier. For low-mileage drivers (under 5,000 miles/year), the financial case weakens significantly.
New petrol equivalent: £28,000 — New EV: £36,000 (£8,000 premium)
Annual EV savings (home charging, standard tariff): ~£1,000
Break-even point: 8 years
But: if you can get a 3-year-old used EV for £20,000 and a 3-year-old petrol for £16,000 (£4,000 premium), break-even at ~4 years.
Used EVs frequently offer the fastest break-even and best overall value for cost-conscious buyers.
Who should be cautious:
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