Electric Car Costs Explained

On average, a new EV in the UK costs around £50,000, with prices starting at roughly £22,000. 

A second-hand EV is a more affordable option. Some of our cheapest EVs start at £13,000, which include the Nissan Leaf, VW E-Golf, and smart ForTwo and ForFour.

If you get a new EV, you can save 30 to 60% on your EV using the Government's Electric car scheme. As an employee, you can sacrifice a portion of your pre-tax salary for an EV if your employer has the scheme set up.

Installing a charging point at home can save you around £555 a year. Installation costs add up to around £1000, which includes:

1. Charger - around £600
2. Charging cable (and safety cut-off device) - around £100
3. Installation labour - around £300

Some chargers are more expensive at first, but it makes charging cheaper long-term. A 7kW is a good place to start and costs around £600.

Got more questions about EV charging? Read our article on Electric car charging explained.

For more long-term savings, check out our EV smart chargers. Using an app like v.energy can also help you reduce your energy bills using off-peak charging.

You could also save up to £350 with the Government’s Office for Zero Emission Vehicles (OZEV) grant funding. For businesses, the same scheme offers up to £14,000 grant funding to buy and install charging points.

Read more about EV charging grants for home and EV charging grants for work.

Charging at home is the cheapest option long-term.

Most energy suppliers charge a flat-rate across all times. Some offer an EV electricity tariff where energy costs are less to charge overnight. Smart charging can make this easier.

Electricity is charged at a price for every kilowatt-hour (kWh). The average UK electricity costs around 34p per kWh. So, you could fill an EV with a 40 kWh battery for roughly £14 at home.

Sustainable solar panels can also help keep energy costs down. Community charging platforms like BookmyCharge, Co Charger and JustCharge can reduce the price too. You could even make up to £3000 a year if you host your own, according to JustCharge.

Charging an EV using a public charger is more expensive, especially during your journey.

The cost varies, based on the speed of the charger. These may be slow, fast, rapid and ultra-fast. According to Eon energy, you could charge an EV with a 50 kWh charger for around £23. 

Planning ahead could save you money too. Tools like ZapMap or E.ON drive map can help you plan ahead to find the most affordable options. Google Maps also now allows you to search for compatible charging points.  

On average, EVs are significantly cheaper than petrol or diesel vehicles to service. A service for an EV can be around £103. Other maintenance costs such as MOT tests and repairs cost up to 43% less than other fuel types.

Battery degradation is unique to EVs and is something to consider. Lasting between 10 and 20 years, it’s estimated that the average car battery in the UK can cost around £5,378.

Insurance for the most popular EV models in the UK is around £654 on average, according to NimbleFins.

According to NimbleFins, comprehensive insurance starts from £400 a year, depending on the car make, model and trim. It also depends on driver age, history, location and other factors.

Currently, EV drivers do not have to pay Vehicle Excise Duty (VED), also known as road tax. This will change from April 1 2025 where owners will have to pay Band B VED.

Zero emission vehicles do not have to pay the Congestion Charge until 24 December 2025. They also do not have to pay the Ultra Low Emissions Zone (ULEZ) charge.

Some London boroughs offer free or reduced-rate parking for EVs too.

There are a mix of pros and cons when making the switch to electric:

• Buying second-hand or using the Government’s Electric car scheme for a new EV can save you money
• Petrol and diesel is currently cheaper than the cost of electrcity used to charge an EV
• Installation for home charging is around £1,000 but works out cheaper long-term than public charging
• Installing a smart charger can save you money in the long run and a Government’s OZEV grant could help too
• Money-saving tips include community charging and planning trips ahead with tools like ZapMap
• Maintenance and repairs are cheaper for EVs than fuel-based cars
• An added expense is a battery which currently costs around £5,378 if you keep the car for 10 years or more (a battery lasts between 10 and 20 years)
• Average cost of insurance in the UK is around £654 for EVs
• You won’t pay road tax, ULEZ or congestion charges — and some parking costs are less for EVs too.

All cost information is representative of the time of publication (April, 2023).

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