New research suggests the average household is being priced out of electric car ownership, creating what’s being called a growing “wealth divide” in Britain’s EV market.
Auto Trader’s latest study reveals that fewer than half (48%) of UK households earning under £40,000 a year are considering an EV for their next car – and the price tag is the biggest barrier. Those earning more than £40,000, however, are far more open to making the switch, with 84% saying their next vehicle will be electric.
The numbers make it clear: with the UK’s median household income sitting at £36,663, millions of drivers simply aren’t in a position to go electric right now.
The study, which surveyed 2,600 UK drivers, also challenges a long-held belief that having a driveway plays a major role in EV adoption. While government data shows that more than 80% of current EV owners have private driveways, Auto Trader found that 70% of lower-income households also have off-street parking. Even though charging at home can be up to four times cheaper than using public chargers, saving around £1,500 a year compared to running a petrol car, the price remains the real dealbreaker.
The data shows that nearly two in five lower-income households buy cars costing £5,000 or less. Yet only 1% of used EVs fall into that price range. On top of that, people on lower incomes are less likely to personally know someone who owns an EV, meaning they’re missing out on real-world reassurance about cost savings, reliability, or convenience.
Auto Trader warns that without targeted action from government and industry, millions could be left behind in the UK’s transition to electric driving.
“We're at a pivotal moment for the UK's EV transition - but there is still a lingering wealth divide," said Ian Plummer, Auto Trader’s Chief Customer Officer. “If lower-income households can't access affordable vehicles, we risk creating a two-tier system where the benefits of cleaner, cheaper motoring accrue to those already better off."
The company is calling for more affordable EV choices, clearer information about battery health, and better solutions for those without driveways. While the government’s Electric Car Grant can knock up to £3,750 off a new model, the reality is that most cheaper households are shopping in the used market, and there’s currently no equivalent support scheme for second-hand EVs.
Following recent budget proposals, including the introduction of a pay-per-mile road tax for EVs from 2028, nearly half of drivers (47%) said they’re now less likely to switch, compared to one third who say it hasn’t changed their plans.
A Department for Transport spokesperson said the government is “making EVs more accessible” through grants, additional funding for charging networks, and initiatives to help residents without driveways install home chargers. Nearly 50,000 new EV buyers have already benefited from the grant.
