Owning an electric car is already the cheaper option for 80% of UK drivers, according to a new industry report. Despite the common belief that EVs are too expensive, the study suggests that most motorists could save money in the long run.
The research, commissioned by Electric Vehicles UK (EVUK) and conducted in partnership with think tank New AutoMotive, analysed the total cost of owning 50 different EV models across 480 real-life driving scenarios. It considered factors such as whether drivers buy, finance, or lease their EVs—particularly through salary sacrifice schemes—along with how and when they charge.
How Much Could You Save?
On average, the report found that an EV owner would save £5,850 over a typical four-year period compared to a petrol car owner. The savings come from lower running costs, including maintenance, servicing, taxation, and charging.
For drivers with access to home charging, 90% of scenarios resulted in savings, compared to 58% for those relying solely on public chargers. In cases where salary sacrifice schemes were used and home charging was available, savings occurred 97% of the time, with an average financial benefit of £4,700 compared to a petrol car.
The Cost of Public Charging
The study highlights that not all drivers will save money with an EV—especially those without off-street parking. Public charging remains significantly more expensive than home charging, partly due to higher standing charges and a 20% VAT rate (four times the rate applied to domestic electricity).
Lowering public charging costs is seen as the most effective way to make EV ownership more affordable for more people in the short term.
Used EVs Offer Even Bigger Savings
The report also analysed 35 used EV models registered between 2017 and 2023. On average, a used EV was £2,781 cheaper to own over five years compared to its petrol equivalent. Some EVs offered even greater savings, with 26% of models coming in over £5,000 cheaper and two models more than £10,000 cheaper.
This is largely due to the steeper depreciation of EVs in their first two years, making second-hand electric cars a particularly good deal.
EV Costs Will Continue to Fall
As battery costs decline and EV production scales up, the study predicts that price parity between electric and petrol cars will be reached before the end of the decade. This means EVs will become even more financially attractive to a wider range of drivers.
Ginny Buckley, founder of Electrifying.com, commented: “While the upfront cost of a new EV is sometimes higher, the savings in running and maintenance costs add up quickly. In today’s economy, where every pound matters, understanding the real cost of ownership is essential.”
MP Matt Western added: “It’s vital that UK motorists know that, in most cases, electric vehicles save money while also improving air quality. The evidence is growing—EVs are the right choice for many drivers.”
