Many UK motorists have been making the switch to an electric vehicle in recent times, and it is easy to see why. Of course, this is one of the best ways an individual can reduce their environmental impact, but it can also help motorists make long-term savings (especially with rising fuel costs). However, it is important to be aware of the real cost of owning an electric vehicle so that you can be prepared. Keep reading for all you need to know.
Charging Costs: Home vs Public Networks
Charging an EV at home is generally more cost-effective, with costs around 8p per mile, compared to 13- 17p per mile for petrol or diesel vehicles – this adds up to significant savings over the long term. However, be aware that public charging can be pricier, with rapid chargers averaging 76p/kWh, which equates to roughly 23p per mile. It is important to consider these differences when planning your charging strategy, and ideally, you will have easy access to a charger that you can use at home.
Maintenance & Repair Savings
EVs typically have lower maintenance costs due to fewer moving parts and less wear on components like brakes. Studies indicate that by the third year of ownership, servicing, maintenance, and repair costs for EVs are nearly 50% lower than those for internal combustion engine vehicles. This can result in significant long-term savings for EV owners. In addition to the financial savings, this also means that you can generally rely on EV vehicles more and do not have the stress and hassle of maintenance and repairs.
Taxation & Incentives: Upcoming Changes
From April 2025, all UK vehicle owners, including those with EVs, will be required to pay Vehicle Excise Duty (VED), ending the current exemption for electric vehicles. It is important to be aware of this change, as it was previously a major financial incentive for making the switch.
While VED introduces an additional cost, EV owners can still benefit from lower Benefit-in-Kind (BIK) tax rates, especially through salary sacrifice schemes, which have become increasingly popular. When evaluating these financial aspects, it is worth considering car finance options to manage the upfront costs of purchasing an EV. The price tag of an EV is often what deters motorists, but car finance allows you to spread the cost with monthly repayments to make the price easier to manage.
With more and more motorists making the switch to EVs, it is important to be aware of the true cost of owning this type of vehicle. While you can certainly make significant long-term savings by making the switch, you need to be prepared for the costs and make sure that it works for you, particularly when it comes to having access to an EV charger at home, making use of BiK rates, and using finance to spread the cost.
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