The cost of running an electric car

EVs are rapidly growing in popularity as more people switch from traditional vehicles. Most major car manufacturers now have an EV option. Many plan to phase out petrol and diesel cars over the next five years. 

Are you considering making the leap to an EV? You’ll want to know how the cost compares to traditional cars and how much it will cost to get up and running. 

Our guide will help you get your head around everything you need to know about the cost of running an EV. 

Is an EV going to be cheaper? 

This is one of the biggest questions people ask when considering switching from a petrol or diesel car to an electric vehicle. With rising fuel prices, it’s hardly surprising that a cheaper alternative is attractive. 

The cost of running an EV largely depends on the model and battery size of the car. When it comes down to it, electric vehicles are more likely to cost you less to run for the duration of ownership. 

Will I save money by charging at home? 

A home charging system is essential to making the most of EV ownership. You’ll be parking your car at home overnight, and thanks to off-peak energy prices, this is the ideal time to charge up your vehicle. 

When you have a charger set up at home, you’ll be able to start the day with a full battery, making your journey to work smoother than ever. There’s no longer the need to make a last-minute stop at the petrol station to fill up. 

We’ve all seen the pumps recently. Fuel prices are consistently rising. Being able to rely on your home charger to power your EV and not having to pay hefty petrol and diesel prices could save you a lot of money in the long run. 

But, what about the actual cost? With at-home charging, the average cost of covering 9,000 miles in a midsize car (such as a Tesla Model 3) is between £525 and £730. When the annual average running cost of a petrol car stands at £1,272.25 and diesel at £1,683.26, it’s easy to see the savings you could be making. 

Charging on the move

Even though public charging is more readily available, home-charging is usually the most cost-effective way to keep your EV on the road.

There are three main types of on the road charging - rapid charging, destination charging and on-street or community charging. Some venues, like hotels and shopping centres, will provide free options, but most standard charge points cost an average of £1.50 per hour. 

As the name suggests, rapid chargers give you more power in less time, but they can be more expensive. It usually costs around £3 for a 45 minute charge with a rapid charger. 

You could be saving up to £180 per year by charging at home versus charging on the road. It’s worth keeping in mind!

What about the cost of installing a home charger?

The upfront cost of installing a charging device at home can often deter people from switching to electric vehicles. And we get it; it adds up. 

Now that the OZEV grant has ended, the average cost of a home installation is somewhere between £500 and £1000. 

At Egg, our mission is to make home charging accessible. That’s why we offer a unique EV charging Plan that allows most customers to get up and running by spreading the cost of the charger over 3-years without any large upfront costs. 

Are there additional running costs?

As with all vehicles, there are running costs involved with being on the road. There's no escaping insurance and maintenance costs, no matter what type of vehicle you drive. But is there a saving to be made?  

More insurance companies are starting to offer cover for EVs. The high cost of insuring an electric vehicle is beginning to fall. The more popular EVs become, the more providers will come into the market. Shopping around will get you the best deal. 

The good news for EV owners is that the cost of tax and maintenance for EVs is 49% lower than petrol vehicles. There’s a few extra pennies to add to your pocket.

What about tax?

Good news! Electric vehicle owners are exempt from paying car tax. 

This can result in savings of around £1,000 over a seven year ownership period.

There are commercial benefits too. The Benefit-in-Kind for electric company vehicles is currently taxed at just 1%, meaning you’ll also save when you purchase an EV as a company car. 

Avoiding congestion charges

If you drive in London, an electric vehicle can save you money in congestion charges. Since 2019, EVs have been exempt from both the London Congestion Charge and the Ultra Low Emission Zone (ULEZ) charge. 

Driving an EV can save you the £15 congestion charge when driving within the Central London boundary. You also won’t need to fork out the £12.50 fee that unregistered vehicles pay to operate within the ULEZ area, which covers the same central London area. 

With news that congestion charge zones could be extended throughout Greater London, you could definitely make a saving with an EV. 

Being savvy about when you charge your EV can save money

Electricity costs change at different times of the day. 

If you have a home charger for your EV, you can be smart about when you charge your vehicle. You’re likely to pay more for charging during the day when compared to charging at night. Charging your EV through the night or early in the morning can save you money on your energy bill and overall vehicle running costs.

Now that insurance companies are catching up with the growing popularity of EVs, the cost of running an EV can be considerably lower than running a traditional vehicle. 

It’s usually cheaper to fully charge an EV than filling up your tank at the petrol station. When you use the most cost effective method of charging your electric vehicle at home, you can save yourself money in the long run.

Find out more about EV charging at home with Egg.