Is an electric car really cheaper than petrol over the long term? This comprehensive 10-year analysis breaks down every cost: purchase price, fuel vs electricity, maintenance, insurance, road tax, and depreciation.
The verdict: UK EV owners save £8,000-£15,000 over 10 years compared to equivalent petrol cars. Here's exactly how those savings add up.
Quick Answer: 10-Year Cost Summary
| Cost Category | Electric Vehicle | Petrol Vehicle | EV Savings |
|---|---|---|---|
| Purchase Price | £35,000 | £28,000 | -£7,000 |
| Fuel/Electricity | £4,800 | £16,500 | +£11,700 |
| Maintenance | £3,200 | £6,800 | +£3,600 |
| Insurance | £7,500 | £6,500 | -£1,000 |
| Road Tax (VED) | £0 | £1,800 | +£1,800 |
| Depreciation | £17,500 | £15,400 | -£2,100 |
| 10-Year Total | £68,000 | £75,000 | +£7,000 |
Based on 10,000 miles/year, mid-size family car comparison
With home charging optimisation: Savings increase to £10,000-£15,000
The Comparison Vehicles
For fair comparison, we're using equivalent mid-size family cars:
Electric: Volkswagen ID.4 Pure (£35,000 new)
- 52kWh battery
- 3.5 miles/kWh efficiency
- 250-mile real-world range
Petrol: Volkswagen Tiguan 1.5 TSI (£28,000 new)
- 1.5L turbo petrol
- 38 mpg real-world
- Similar size, features, practicality
Both are popular UK family SUVs from the same manufacturer, making this a genuine like-for-like comparison.
Cost Category 1: Fuel vs Electricity
Petrol Costs (10 Years)
Assumptions:
- 10,000 miles per year
- 38 mpg real-world (Tiguan average)
- £1.45/litre average (2024-2034 projection)
Calculation:
- Annual petrol: 10,000 ÷ 38 × 4.546 = 1,196 litres
- Annual cost: 1,196 × £1.45 = £1,734/year
- 10-year total: £17,340
Electricity Costs (10 Years)
Scenario A: Standard Home Charging (24p/kWh)
- Annual electricity: 10,000 ÷ 3.5 = 2,857 kWh
- Annual cost: 2,857 × £0.24 = £686/year
- 10-year total: £6,860
Scenario B: Smart Tariff Charging (7p/kWh Octopus Intelligent Go)
- Annual cost: 2,857 × £0.07 = £200/year
- 10-year total: £2,000
Scenario C: Mixed (70% home smart tariff, 30% public rapid)
- Home charging: 2,000 kWh × £0.07 = £140
- Public rapid: 857 kWh × £0.70 = £600
- Annual cost: £740/year
- 10-year total: £7,400
Fuel/Electricity Savings Summary
| Charging Method | 10-Year EV Cost | vs Petrol Savings |
|---|---|---|
| Standard home (24p) | £6,860 | £10,480 |
| Smart tariff (7p) | £2,000 | £15,340 |
| Mixed charging | £7,400 | £9,940 |
Bottom Line: Even with expensive public charging mixed in, EVs save £10,000+ in fuel over 10 years.
Cost Category 2: Maintenance
Why EVs Cost Less to Maintain
Electric vehicles have fewer moving parts:
- No engine oil changes
- No spark plugs
- No timing belts
- No exhaust system
- No clutch (no manual gearbox)
- Regenerative braking = brake pads last 2-3x longer
Petrol Maintenance Schedule (10 Years)
| Service | Frequency | Cost | 10-Year Total |
|---|---|---|---|
| Oil change | Annual | £150 | £1,500 |
| Major service | Every 2 years | £350 | £1,750 |
| Brake pads | 30,000 miles | £300 | £900 |
| Timing belt | 80,000 miles | £500 | £500 |
| Exhaust repair | Once in 10 years | £400 | £400 |
| Clutch (if manual) | Once in 10 years | £600 | £600 |
| Total | £5,650 |
Add 20% for unexpected repairs: £6,780
EV Maintenance Schedule (10 Years)
| Service | Frequency | Cost | 10-Year Total |
|---|---|---|---|
| Annual inspection | Annual | £100 | £1,000 |
| Brake fluid change | Every 2 years | £80 | £400 |
| Cabin air filter | Every 2 years | £50 | £250 |
| Brake pads | 60,000+ miles | £300 | £300 |
| 12V battery | Once in 10 years | £150 | £150 |
| Wiper blades | Every 2 years | £40 | £200 |
| Total | £2,300 |
Add 20% for unexpected repairs: £2,760
Maintenance Savings
10-year EV maintenance advantage: £4,020
Cost Category 3: Insurance
Current UK Reality
EV insurance is typically 10-20% higher than equivalent petrol cars in 2025:
Reasons:
- Higher repair costs (specialist technicians needed)
- Battery repair/replacement risk
- More expensive parts
- Fewer qualified repair centres
Typical Annual Premiums (35-year-old, 5 years NCB)
| Vehicle | Annual Premium | 10-Year Total |
|---|---|---|
| VW ID.4 | £650-£850 | £7,500 |
| VW Tiguan | £550-£750 | £6,500 |
EV insurance premium: +£1,000 over 10 years
However: Insurance gap is narrowing as more EVs enter the market and repair infrastructure improves. By 2030, expect EV/petrol insurance parity.
Cost Category 4: Road Tax (VED)
Current UK Rules (2025)
Electric Vehicles:
- Years 1-5: £0 (zero-emission exemption)
- From April 2025: Standard rate applies to new EVs (£190/year)
- Existing EVs registered before April 2025: Remain exempt
Petrol Vehicles:
- First year: Based on CO2 emissions (£220-£2,745)
- Years 2+: Standard rate (£190/year)
- Cars over £40,000: Additional £410/year for 5 years
10-Year VED Comparison
VW ID.4 (registered 2025):
- Years 1-5: £190/year = £950
- Years 6-10: £190/year = £950
- Total: £1,900
VW Tiguan:
- Year 1: £220 (CO2-based)
- Years 2-10: £190/year = £1,710
- Total: £1,930
Note: For EVs registered before April 2025, VED is £0 for entire ownership period = £1,900 savings.
Cost Category 5: Depreciation
The Biggest Cost of Car Ownership
Depreciation typically accounts for 40-50% of total ownership cost. Here's how EVs and petrol cars compare:
10-Year Depreciation Projection
VW ID.4 (£35,000 new):
| Year | Value | Depreciation |
|---|---|---|
| Year 1 | £28,000 | -£7,000 (20%) |
| Year 3 | £21,000 | -£14,000 (40%) |
| Year 5 | £15,750 | -£19,250 (55%) |
| Year 10 | £10,500 | -£24,500 (70%) |
VW Tiguan (£28,000 new):
| Year | Value | Depreciation |
|---|---|---|
| Year 1 | £23,800 | -£4,200 (15%) |
| Year 3 | £18,200 | -£9,800 (35%) |
| Year 5 | £14,000 | -£14,000 (50%) |
| Year 10 | £8,400 | -£19,600 (70%) |
Depreciation Analysis
EVs currently depreciate faster initially due to:
- Battery technology improving rapidly
- Concerns about battery longevity (often unfounded)
- Government incentive changes
- Faster model refresh cycles
However: EV depreciation is stabilising as market matures. Battery warranties (8 years/100,000 miles) provide confidence.
10-year depreciation difference: EVs lose ~£5,000 more (based on current trends)
Hidden Costs Often Overlooked
Home Charger Installation
EV-only cost: £800-£1,200 (after OZEV grant)
- One-time expense
- 10-15 year lifespan
- Adds £3,000-£5,000 to property value
- Effectively cost-neutral or positive
Congestion Charge (London Drivers)
Petrol: £15/day (£3,000+/year for daily commuters) EV: Exempt until 2025, then discounted
For London drivers: EVs save £10,000+ in Congestion Charge alone over 10 years.
Company Car Tax (BiK)
EV Benefit-in-Kind rates:
- 2024/25: 2%
- 2025/26: 3%
- 2026/27: 4%
- 2027/28: 5%
Petrol BiK rates: 25-37% (based on CO2)
For £35,000 company car:
- EV annual BiK (2%): £175 (40% taxpayer)
- Petrol annual BiK (30%): £2,625
- Annual saving: £2,450
- 10-year saving: £20,000+ (company car drivers)
Real-World Scenarios
Scenario 1: Suburban Family (10,000 miles/year)
Profile:
- School runs, shopping, occasional motorway
- Home with driveway (charger installed)
- Smart tariff charging (Octopus Intelligent Go)
| Cost | EV (10 years) | Petrol (10 years) |
|---|---|---|
| Purchase | £35,000 | £28,000 |
| Energy | £2,500 | £17,000 |
| Maintenance | £2,800 | £6,500 |
| Insurance | £7,500 | £6,500 |
| VED | £0 | £1,900 |
| Charger install | £1,000 | £0 |
| Total | £48,800 | £59,900 |
| Savings | £11,100 | - |
Scenario 2: High-Mileage Driver (20,000 miles/year)
Profile:
- Sales rep or long commute
- Mix of home and public charging
- Heavier maintenance wear
| Cost | EV (10 years) | Petrol (10 years) |
|---|---|---|
| Purchase | £35,000 | £28,000 |
| Energy | £8,000 | £34,000 |
| Maintenance | £4,500 | £11,000 |
| Insurance | £8,000 | £7,000 |
| VED | £0 | £1,900 |
| Charger install | £1,000 | £0 |
| Total | £56,500 | £81,900 |
| Savings | £25,400 | - |
Scenario 3: City Dweller (No Home Charging)
Profile:
- Flat without charging
- Relies on workplace and public charging
- Lower annual mileage (6,000 miles/year)
| Cost | EV (10 years) | Petrol (10 years) |
|---|---|---|
| Purchase | £35,000 | £28,000 |
| Energy | £8,400* | £10,200 |
| Maintenance | £2,500 | £5,500 |
| Insurance | £7,500 | £6,500 |
| VED | £0 | £1,900 |
| Total | £53,400 | £52,100 |
| Savings | -£1,300 | - |
Higher cost due to public rapid charging (65-79p/kWh)
Key Insight: Without home charging, EV cost advantage disappears for low-mileage drivers. However, workplace charging or free supermarket charging can restore savings.
When Does an EV Break Even?
Break-Even Analysis
With home smart tariff charging:
- Monthly savings: ~£100
- Higher purchase price: £7,000
- Break-even point: 5-6 years
With standard home charging:
- Monthly savings: ~£70
- Break-even point: 7-8 years
High-mileage drivers (20,000+ miles/year):
- Monthly savings: £150-£200
- Break-even point: 3-4 years
Future Cost Projections
Expected Changes by 2030
EV Purchase Prices:
- Expected to reach petrol parity by 2027-2028
- Battery costs falling 15% per year
- More affordable models entering market
Electricity Costs:
- Smart tariffs becoming cheaper relative to standard rates
- Home solar + battery making charging nearly free
- Vehicle-to-Grid (V2G) creating income potential
Petrol Costs:
- Likely to increase with carbon taxes
- Refinery closures reducing supply
- Government incentives shifting to EVs
Insurance:
- EV premiums expected to fall as repair infrastructure grows
- Parity with petrol by 2028-2030
2030 Projection: EV Advantage Grows
By 2030, expect EV 10-year savings of £15,000-£25,000 vs equivalent petrol, driven by:
- Purchase price parity
- Lower insurance
- Increased fuel price gap
- V2G income potential
Frequently Asked Questions
1. What about battery replacement costs?
Modern EV batteries last 200,000-300,000 miles - far beyond 10-year ownership for most drivers. Warranties cover 8 years/100,000 miles (70% capacity minimum). Battery replacement is rarely needed within ownership period.
If needed after warranty: £5,000-£10,000 (falling yearly as technology improves).
2. Doesn't the higher purchase price cancel out savings?
For most drivers: No. The fuel and maintenance savings of £15,000+ over 10 years exceed the £7,000 purchase premium. High-mileage drivers see faster payback.
3. What if I can't charge at home?
Without home charging, EV economics are marginal for low-mileage drivers. However:
- Workplace charging (often free) restores advantage
- Supermarket charging (Lidl, Aldi) is free
- Dedicated EV tariffs for public charging are emerging
4. Are these savings realistic for UK drivers?
Yes. Our calculations use real UK data:
- Energy prices: Ofgem and supplier rates
- Fuel prices: RAC fuel watch averages
- Maintenance: Manufacturer service schedules
- Depreciation: Cap HPI and Auto Trader data
5. What about resale value concerns?
EV resale values have stabilised since 2023. Tesla Model 3 and VW ID.4 now hold value similarly to petrol equivalents. Battery warranty transferability and improving technology confidence support values.
6. Should I wait for cheaper EVs?
If you drive 10,000+ miles annually, buying now makes financial sense. The fuel savings accumulate immediately. Waiting means continued petrol costs. However, if replacing a functional petrol car with low mileage needs, patience may be reasonable.
Maximising Your EV Savings
Top Tips for UK EV Owners
- Get on a smart tariff (Octopus Intelligent Go, OVO Charge Anytime) - saves £500+/year
- Install solar panels - charge for free during daylight
- Claim OZEV grant - £350 off charger installation
- Use free supermarket charging - Lidl, Aldi, Tesco
- Company car? Go electric - BiK savings of £2,000+/year
- Maximise warranty - Use manufacturer servicing to maintain cover
Summary: The 10-Year Verdict
For most UK drivers, EVs save £8,000-£15,000 over 10 years.
Key Factors:
- Home charging with smart tariff = maximum savings
- Higher mileage = faster break-even
- Company car drivers = massive BiK savings
- London drivers = Congestion Charge exemption bonus
When EV doesn't make sense:
- No home charging AND low mileage (<5,000 miles/year)
- Very short ownership period (<3 years)
- Specialist vehicle needs (towing heavy loads, remote rural with no charging)
The Bottom Line: Despite higher purchase prices, EVs are cheaper to own than petrol cars for the majority of UK drivers. The fuel and maintenance savings compound over time, making the 10-year total cost significantly lower.
Ready to make the switch? Your wallet will thank you.
Last Updated: January 2025 | Cost data from Ofgem, RAC, Cap HPI, and manufacturer sources
