Over the past weeks, we have looked at electric vehicles, charging and suitability. For many people keen to go green, the cost of electric vehicles can be the biggest barrier. Here, we take a look at the cost of buying an electric car.
Although the cost of buying an electric car has been steadily dropping over the last five years, it is still more expensive to buy an EV than it is to buy diesel or petrol. However, the government’s plug-in car and van grant schemes have helped to make buying an EV more achievable and is set to continue into 2020. The amount available has fluctuated over the years, but from 2018, grants of up to £3,500 have been available for eligible electric cars and the grant will continue in some form into 2020; you can see more information and find out how to apply here.
If the financial implications of buying an EV are too much for you, you could consider car leasing. Just like buying a car, leasing an EV will cost more than leasing a petrol or diesel vehicle, but the running and tax costs will be much less, and you will be doing your bit for the environment.
Running an EV
Once you have invested in an EV, it isn’t just kinder to the earth, it is kinder on your wallet, too. EVs make huge savings in three ways:
- Car tax – EVs are xero rated for car tax, offering you immediate savings.
- Fuel tax and vat – no fuel tax, and electricity for private use attracts just 5% VAT.
- ULED – Ultra Low Emission Discount Scheme which allows EVs to drive in London without paying the congestion charge. The ULED will also exempt EVs from future clean air charges.
- Fuel costs – tax aside, EVs are cheaper to run, with average fuel costs as little as 3p per mile. This means that people driving an average of 18,250 miles a year (50 miles a day), will save at least £1,200 a year on fuel.
The long-term financial implications of owning an EV are indisputable. However, when you consider the additional cost of buying an EV, it is difficult to see at this point whether it really is cheaper in the long run. If you are in doubt, speak to your local car dealer or garage and ask them for advice. In the meantime, you can guarantee one thing: the EV market is on the rise, and over the oncoming years the market will be flooded with more choice and cheaper options. When it comes to EVs, watch this space!