The energy price cap in the UK has increased from £1971 to £3549 as of October 2022. At the end of 2020, petrol was 118.5 pence per litre on average, but it is now at 169.33 for petrol and 183.49p for diesel according to the RAC. This has, and will continue to have, a significant impact on the British people. Could an electric vehicle be a good choice to help with rising costs?
Accompanying the rise of energy bills comes to rise of the cost to fully charge an electric vehicle. The RAC estimates a Kia e-Niro will cost £33.80 for full charge in today’s economic climate, which is around £5-10 more than it would normally be.
However, more and more drivers are considering making the leap to electric cars due to the lower maintenance costs and rise in petrol and diesel costs. Car retailer CarWow has seen a growth in EV sales over the past year despite rising energy costs, partly because of the leap in fuel prices and because people are becoming more aware of the long-term benefits of EVs.
It is true that the upfront cost of an electric car can cost more than a standard petrol or diesel car. A brand-new petrol Vauxhall Corsa costs around £18,000, whereas a new Vauxhall Corsa-e costs around £29,000.
So, how much money can an electric car really save you in the long term?
Electric cars are less complicated than internal combustion engines since there is no oil and there are fewer moving parts to contend with. In fact, the biggest issue you could face with an EV is your battery running low but if you stop your battery running flat and pay attention to low-power warnings then you shouldn’t have many issues to pay for.
The cost of car insurance for an EV is around £600, just coming in above standard fuel cars at around £550 annually. However, road tax for a diesel car can be anywhere from £150 to £500 compared to £0 for an EV since there are no fossil fuels to pay fuel tax on! MOTs won’t set you back anymore with an EV than it would for a standard fuel car so there aren’t any savings here.
The big savings come from your everyday expenses and commuting costs. Electric cars are exempt from congestions charges in cities like London and Birmingham, costing around £15 per day. If you were to travel through these Clean Air Zones every weekday for a year, that would cost you £3825!
Electric cars also pay 50% less on every single toll road in the UK. The M6 toll can cost £7.30 for off-peak usage, which could cost £1861.50 a year if you used it every weekday.
Also, businesses can save tremendous amounts of money in BIK by opting for electric vehicles as demonstrated by the RAC’s table below.
Image credit: https://www.edfenergy.com/electric-cars/tax-road-company#:~:text=There's%20currently%20zero%20tax%20on,2%25%20in%202022%20%2F%202023.
How does it all stack up?
For this example, we have compared the upfront and yearly costs or a brand-new petrol Vauxhall Corsa versus a brand-new Vauxhall Corse-e.
| Petrol | Electric |
Upfront Costs | £18,000 | £29,000 |
Fuel/Charging Costs | £3600 | £800 |
Insurance Costs | £550 | £600 |
Car Tax | £30 | £0 |
Clean Air Taxes (if used everyday) | £3825 | £0 |
Total | £18,000 + £8005 per year | £29,000 + £1400 per year |
Yes, the upfront cost for the electric version is £11,000 higher than its petrol counterpart. However, if you were commuting in London, you would be saving £6605 every year! In under 2 years, you would have made up the difference in purchase price so consider an electric car as a long-term purchase.
Furthermore, as more used electric cars become available on the UK market, that upfront price will come down significantly (just like if you were to buy one of the 7.5 million used petrol and diesel cars sold in 2021).
Plus, Charge and Recharge can help you and your business save money on fuel by installing an EV charger at your business, so get in touch here!