Electric Car vs. Petrol Car Cost Calculator
We compare the differences in purchase, running and maintenance costs for electric cars and fuel powered models
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The costs of running a car are important to consider before making a purchase. Things like insurance, maintenance costs and the price of fuel or electric charging will need to be included in our budgets.
There are some differences in the costs associated with running an electric car or a fuel-powered model. The initial purchase price is likely to differ, as well as the running costs you’ll need to pay.
Electric car vs. petrol car: purchase costs
One of the first costs you’ll have to weigh up when considering a new car is just how much you want to spend.
There’s the option to purchase an electric or fuel-powered car brand-new or on the used market. A used option would be better for saving money, while a brand-new model allows you to pick the exact specification you prefer.
You can also choose to spread the cost of your car with a finance deal. Personal Contract Purchase (PCP) allows you to make an initial payment on your car and then continue to make monthly payments, with the choice to hand the car back or pay a final balloon sum at the end of your contract to take ownership.
Hire Purchase (HP) car finance allows you to pay a deposit on a car and spread the rest across monthly payments, becoming the owner of the vehicle when you’re all paid up.
Electric cars purchase costs
The cost of buying an electric car will likely be higher than the price of a similar fuel-powered model, whether you’re buying used or brand-new.
Electric cars are currently manufactured on a smaller scale than fuel-powered vehicles, so this might contribute towards the higher price point.
As the ban on new petrol and diesel cars comes into place, the cost of buying an EV will likely drop as manufacturing of electric cars increases.
You can also choose a used electric car – but don’t worry about battery degradation. EV batteries are made to last and come with long manufacturer warranties (some between eight and 10 years!), so you’re unlikely to feel a significant effect.
On our site, you can buy or finance a used 2017 Nissan Leaf for around £10,000. However, a 2017 Ford Fiesta with a petrol engine will usually cost around £8,500 – so you can see that buying an EV model is slightly more expensive.
Petrol cars purchase costs
It’s easy to buy a cheap petrol car, with some great deals to be found on the used market.
As fuel-powered models are still the norm on UK roads, they’re available in much larger quantities and are easy to come by.
A brand-new Ford Fiesta Trend model will cost upwards of £19,350 on the Ford website, which can still seem quite pricey for a relatively popular and common hatchback. Choosing a used Ford is a good way to cut costs.
You might also want to consider a hybrid model before switching to a fully-electric car, as these can be a cheaper option. Some models, including the Ford Fiesta, are even available with mild hybrid tech that helps to improve fuel economy.
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Electric car vs. petrol car: running costs
The running costs that come with owning a car include things like insurance, car tax, and charging or fuel.
There are significant differences between the different types of running costs you’ll have to pay for an electric car compared with petrol or diesel.
You’ll also need to consider the insurance group that your car falls into and how this works with your personal circumstances. A vehicle in a higher insurance group will be pricier to insure, especially if you have points on your license or live in an area with high crime rates.
Electric car running costs
Electric cars are a great option if you want to cut down on running costs – and you might even benefit from a government grant.
Government grants in the UK change regularly, but there are options that can help towards the cost of buying an EV or installing a charging point. Take a look at the government website to see if you’re eligible.
With an EV, you’ll also currently have to pay no road tax because your electric car produces no tailpipe emissions. This is due to change in 2025, however, when EV drivers will then be required to pay.
Electric cars also don’t have to pay congestion charges or the Ultra Low Emission Zone (ULEZ) charge.
You’re not automatically exempt from these charges, however, so will need to apply through TfL’s website. Plug-in hybrid vehicles are not exempt either, so that’s worth bearing in mind.
Insurance costs will differ depending on the insurance group your EV sits in, so it’s worth checking that before you buy. Models with large engines that will cost a lot to replace or repair are usually more expensive to insure.
The main difference with an EV is that you’ll be paying for electric charging and not fuel. You can sometimes find charging points that will let you charge for free, and there are specific electricity tariffs for EV users.
On average, you can usually expect a full charge to cost around £17 but this will differ depending on battery size and the type of charger you use.
Petrol car running costs
With a petrol- or diesel-powered car, you’ll also need to consider road tax, insurance, and fuel.
Fuel costs – like electricity costs – often fluctuate in the UK. It’s a good idea to keep an eye on local petrol stations to see what the average cost of fuel is in your area.
For the most part, you’ll usually find that charging an electric car is cheaper than filling up a tank with fuel.
As with EVs, your insurance cost will be based on the group that your car sits in. The Ford Fiesta ranges from insurance groups three to 30, with the lower groups being the cheapest to insure. You can get a better deal on your car insurance by considering things like lowering the number of miles you cover annually.
Road tax in the UK is calculated based on a few factors, including the engine size, type of fuel and how much it cost to buy. You can see the exact guidelines on the government website.
As EVs are currently exempt from paying road tax, fuel-powered cars will be more expensive in this area. They also don’t get to dodge congestion or ULEZ charges.
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Electric car vs. petrol car: maintenance costs
Maintenance is a part of owning a car that you just can’t avoid. Things like MOTs, servicing and wear and tear are all something you’ll have to consider at some point while owning a vehicle.
While MOTs are a legal requirement in the UK, servicing is not. It’s recommended that you still service your vehicle to keep it in the best condition and avoid repairs further down the line.
Wear and tear is important to consider if you choose to buy your car on a PCP finance deal, as there are usually fees to pay if you damage your car beyond this and want to hand it back at the end of your contract.
Electric car maintenance costs
Maintenance with electric cars is usually considered to be cheaper than petrol- or diesel-powered models.
EVs have fewer oily engine parts that are likely to need repairs or wear down over time, so it’s likely that you’ll pay less for upkeep.
You’ll still have to get an MOT for your electric car, so this is something to factor in. This ensures that your vehicle is still safe to drive and roadworthy.
EVs also still require servicing, with the first service recommended two years after buying a brand-new model.
If your car is on PCP finance, it’s still important to consider wear and tear. If you intend to return your electric finance car at the end of your contract, you may be charged fees for extra damage to the car that falls outside of the fair wear and tear guidelines. This also applies to petrol and diesel models.
A common fear that new EV drivers have is whether you’ll need to replace the car’s battery – the short answer is likely not. EV batteries are built to last long periods and it’s unlikely you’ll need a replacement, but you’ll usually be covered by a lengthy manufacturer warranty just in case.
Electric car vs. petrol car: which should I buy?
Choosing between an electric or fuel-powered car will largely rest on where your priorities lie.
If you don’t want to immediately pay the usually higher cost of buying an electric car (with the potential cost of fitting a charger point), then sticking with a petrol or diesel option will likely work for you.
Petrol and diesel cars are familiar and will keep you in your comfort zone, as some motorists do feel nervous about making the switch to an EV.
A positive to consider about switching to electric motoring is that the cost of maintenance and running is usually lower than fuel-powered cars. You can make savings by not having to pay for fuel (unless you choose a hybrid model), skipping out on congestion and ULEZ charges, and road tax (until 2025).
You can also choose to spread the cost of a car with a finance deal to make the price more manageable if this is an appropriate option for you.