What to Consider Before Buying an Electric Car: The True Cost of EV Ownership

New car sales show a substantial increase in EVs and Plug-In Electric Hybrids, 811 EVs and 301 plug-ins sold in the month of January representing a combined market share of 3.4%

Thinking of buying an EV? Before making the switch, here are the key factors you should consider over a typical three-year ownership period, writes Geraldine Herbert

💸 1. Upfront Cost vs Grants

EVs usually come with a higher purchase price than petrol cars — even after grants and tax relief.
However, incentives (like reduced vehicle registration tax and purchase grants) can help narrow the gap.

👉 Takeaway: EVs still cost more upfront, but incentives soften the blow.

⚡ 2. Charging Costs (Home vs Public)

• Home charging is where EVs shine especially on night rates.
• Public charging, can be significantly more expensive and quickly eat into savings.
• Installing a home charger adds an upfront cost too.

👉 Takeaway: Your access to cheap home charging is one of the biggest cost factors.

🏙️ 3. Your Living Situation Matters

• If you can’t install a home charger (e.g. apartment living), running costs may rise sharply.
• Reliance on public infrastructure can make EV ownership less economical.

👉 Takeaway: EVs make most financial sense if you can charge at home.

📉 4. Depreciation Trends Are Changing

• EVs historically lost value faster
• But depreciation is stabilising as the market matures.
• Battery lifespan (often 16–18+ years) is improving confidence in long-term value

👉 Takeaway: Resale values are improving, but depreciation remains a key cost to consider

🛠️ 5. Servicing & Maintenance Savings

• EVs have fewer moving parts, meaning:
  • Less frequent servicing is required
  • No oil changes are needed
  • Regenerative braking reduces wear on brake components
  • Maintenance costs can be around 20–30% lower than petrol car

👉 Takeaway: Lower servicing and maintenance costs can deliver meaningful savings over time.

🛞 6. Tyres & Wear-and-Tear

• EVs are heavier and deliver instant torque, which can lead to:
  • Instant torque puts more strain on tyres
  • Slightly higher tyre replacement costs

👉 Takeaway: Tyre costs may be slightly higher, offsetting some of the savings.

🔋 7. Battery Lifespan & Replacement

• • Modern EV batteries are designed to last 16–18+ years
  • This is in line with, or longer than, a typical petrol car lifespan
  • Battery degradation is slower than many buyers expect
  • Replacement costs are high, but unlikely to be an issue during normal ownership

  👉 Takeaway: Battery lifespan is no longer a major concern for most EV buyers.

⛽ 8. Fuel vs Electricity Costs

• EVs are much cheaper to run per km when charging cheaply at home.
• But if relying on public charging, costs can approach  or exceed  petrol.

👉 Takeaway: Running costs depend heavily on how and where you charge.

🧾 9. Tax Advantages

• EVs benefit from:
  • Lower motor tax
  • Tax incentives for company car users
  • Grants and relief schemes

👉 Takeaway: Tax savings can meaningfully reduce total ownership cost.

🧠 Final Thought: It’s Not One-Size-Fits-All

The biggest insight?
👉 Whether an EV saves you money depends less on the car and more on your lifestyle.

Best case for EV savings:

• You have a home charger
• You drive regularly
• You can access cheap electricity

Less ideal scenario:

• You rely on public charging
• You have limited mileage
• You can’t install home charging

🚗 Bottom Line

EVs can absolutely be cheaper to own  but only under the right conditions.
Before buying, think beyond the headline savings and consider how you’ll actually use (and charge) the car day-to-day.