Electric vs petrol: the honest comparison
The monthly finance payment is just one number. The comparison that actually matters is total cost of ownership over the period you plan to keep the car — including depreciation, energy costs, insurance, servicing and tax.
Why EVs often win on running costs
Electricity is cheaper per mile than petrol or diesel at most UK tariffs. EVs have fewer moving parts, meaning lower servicing costs (no oil changes, fewer brake replacements due to regenerative braking). Road tax is currently the same for both under the 2025 VED changes.
Where EVs can cost more
The purchase price of EVs is typically higher than equivalent petrol models. Insurance can be more expensive due to higher repair costs for EV-specific parts. Public rapid charging can be expensive (40–70p/kWh) if you rely on it heavily.
Getting the most from an EV
- Install a home charger (see our home EV charger guide) — overnight charging is the biggest cost saving
- Switch to a smart EV tariff like Intelligent Octopus Go for charging at ~7p/kWh
- Factor in the OZEV grant for home charging installation (currently £350 off)
Reduce your car costs
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