Motorists to save up to £7k by going electric

Motorists that purchase an EV over its petrol equivalent stand to save up to £7,000 over the next four years, according to the latest report from New AutoMotive.

No matter what method drivers use to purchase a new EV, the report found that they can expect to save a minimum of £3,000 over the same period.

These savings are a result of lower charging prices versus petrol, cheaper maintenance costs and tax exemptions, with those driving further than the national average able to make even greater savings.

To calculate these savings, the report compares the upfront price of seven common EVs and their running costs, against their petrol counterpart in three different scenarios. 

The scenarios include a driver purchasing the vehicle outright, leasing the car through their place of work, and undertaking a personal contract purchase.

In over half (55%) of the scenarios tested, an EV would pay back any additional cost in a maximum of two and a half years. In a third (30%) of scenarios, drivers would see the financial benefits immediately, or in less than a year. 

Models used to calculate the figures include the Peugeot e2008GT, which is over £4,000 cheaper than its petrol equivalent, and the Citroen eC4 MAX, clocking in at £2,500 cheaper.

The research also reveals that the average upfront cost of a new electric vehicle (EV) is just 12% more than the petrol equivalent - far lower than the commonly cited 50% - putting upfront price parity within reach.

The report sets out a wide range of policy recommendations that the next Government could implement to help accelerate the UK’s transition to electric cars further. 

These include not weakening the Zero Emissions Vehicle mandate - which has been the main driver of price reductions for EVs - as well as cutting the tax on public EV charging and better public communications, including making it easier for drivers to work out the cost savings from switching to electric. 

Ben Nelmes, CEO of New AutoMotive, said: “Many motorists will only consider going electric when the cars cost the same or less than their petrol or diesel equivalents.

“Our report finds that the UK is on the cusp of this tipping point. Soon, buying an EV will no longer just be the environmentally responsible and financially savvy thing to do. Instead, it will be a financial no-brainer, with consumers able to start saving from day one.

“Reductions in the prices of electric cars are being driven by the UK’s world-leading Zero Emissions Vehicle mandate, which is increasingly providing a lifeline for those who have to choose between an empty tank or an empty wallet.” 

You can view New AutoMotive’s full “Price Parity 2024: The Final Mile” report here.