EVs that are more affordable than petrol cars

Electric vehicles (EVs) are often seen as being more expensive than petrol cars, but if the fuel saving costs are taken into account and the upfront purchase price is spread across monthly leasing payments, then a new EV could cost the equivalent of less than £200 per month.

If the UK is to meet its 2050 Net Zero target then all new cars on sale need to be EVs by 2035, or possibly earlier – to be confirmed following a government consultation which closed on 31 July. To ensure that the maximum number of motorists are able to make the switch to electric cars over the coming years, EVs need to be as affordable as possible. The following five electric cars are examples of vehicles that motorists can drive today – with zero tailpipe emissions and all the other benefits that electric cars offer, including being virtually silent, very refined and easy to drive.

Five EVs with monthly costs that can be lower than petrol cars

1. Smart EQ ForFour 17 kWh Passion Advanced 5dr Auto

2. Skoda CITIGOe IV SE 37 kWh 5dr Auto

3. Renault ZOE GT Line 50 kWh 5dr Auto

4. Volkswagen e-Golf 35 kWh 5dr Auto

5. Peugeot E-2008 50 kWh Active 5dr Auto

*The monthly lease costs are for 4-year Personal Contract Hire (PCH) covering 10,000 miles per year; they include VAT and there is no initial rental. Estimated fuel savings are based on 14p per kW electricity costs and monthly mileages covered as part of a 10,000 miles per year PCH.

Maintenance costs of EVs are also lower than those of petrol cars, and for company car drivers, EVs have zero Benefit in Kind tax for 2020/21.

“Fuel costs of EVs are around 20% of the fuel costs of petrol cars”

Mike Potter, Managing Director of DriveElectric, comments: “There’s much talk about EVs reaching price parity with petrol cars over the coming years, but zero emission electric cars can be more affordable than people think today. Fuel costs of EVs are around 20% of the fuel costs of petrol cars, and spreading the cost of the initial purchase price over monthly leasing payments means that EVs are now typically cheaper than petrol cars from a whole-life cost point of view. This could enable large numbers of motorists to make the switch to EVs to help improve local air quality and achieve Net Zero.

“The driving ranges of the latest EVs are sufficient for many people’s regular driving patterns, and for those such as business users who regularly need to cover lots of motorway miles, there’s an ever-increasing variety of vehicle options available with electric driving ranges over 300 miles.”

Editors notes:

1. The vehicles shown only have monthly costs and do not have any upfront initial rental.
2. The monthly lease cost is for a 4-year Personal Contract Hire (PCH) covering 10,000 miles per year and includes VAT.
3. Estimated fuel savings are based on 14p per kW electricity costs and monthly mileages covered as part of a 10,000 miles per year PCH.
4. Research was conducted to establish the monthly lease cost of equivalent petrol vehicles, where possible.
5. Prices correct as at 11 August 2020.