This article is part of a series on how to get the best value out of your car. It also tells you whether you should sell a used car online, whether car leases are good value for money, and what questions to ask when buying a used car.
Britain’s electric car revolution is underway and sales of new gasoline and diesel cars will be banned until the end of the decade.
Electric vehicle sales are booming, outpacing diesel sales this month for the third time in three years. Meanwhile, more than half of motorists are considering switching to electric in the next five years, according to online vehicle dealer Carwow.
But many are not convinced. In addition to ongoing concerns about range and comfort, drivers are being put off by the higher up-front costs.
But can an electric vehicle ever be cheaper than its gasoline equivalent, and how long does it take for the lower running costs to make up the difference? Telegraph Money walks you through the numbers.
What are the upfront costs?
Electric vehicles are on average 47 percent more expensive to purchase than their diesel or gasoline counterparts, largely due to the cost of lithium-ion batteries. However, battery sizes have decreased over the years, lowering the overall cost.
Six years ago, a battery made up 57 percent of an electric car’s battery. Since then, this has dropped to only a third and, according to the source of the charging point network, will account for 20 percent by 2025.
The government offers grants of up to £ 2,500 for new electric vehicles valued at less than £ 35,000. The dealer should include this in the vehicle price.
The prices of used electric vehicles are also likely to fall as more hit the market.
Transportation Secretary Rachel Maclean said in a recent MP hearing that electric cars could be as cheap as gasoline and diesel vehicles in just four years.
Read more: Everything You Need To Know About Electric Car Maintenance And Battery Life
How long does it take to save?
While electric vehicles are more expensive, after around three years motorists could save due to lower operating costs, according to retailer Halfords.
Charging an electric car with a 60 kWh battery and 200 mile range at home would cost around £ 9.20, according to Pod Point, a charging network. Meanwhile, 200 miles worth of gasoline in an average fuel economy car would cost £ 28.78.
It can cost up to £ 1,000 for a home charging station, according to EDF, but there are grants from the Office for Low Emission Vehicles that can cut upfront costs by up to 75 percent.
Electric vehicles are also subject to certain tax exemptions that make them cheaper to operate. You are exempt from road tax, although owners of cars over £ 40,000 will pay an additional fee. Londoners with electric vehicles are also exempt from the city toll and the ultra-low emission zone.
Halfords noted that buying the electric version of a Mini Cooper Classic would save an average of £ 800 after three years, while buying a BMW i3 would save £ 1,650, despite costing almost £ 10,000 upfront and £ 4,000 more than their petrol or diesel equivalents.
However, the time it takes to save depends heavily on the amount of fuel that a driver normally uses. Do you separate research from that? found that it could take up to 10 years for an electric Mini Cooper to make up for the price difference to its gasoline equivalent.
Replacing the battery in an electric car can also be expensive. They are designed for a service life of at least 10 years and are often supplied with guarantees. If you want to keep an electric vehicle for a long time or buy a used one, you should consider these costs before buying.
