EV running costs explained

The headline claim about electric cars is that they are cheaper to run. That is usually true, but the size of the gap depends almost entirely on where you charge. Charging at home overnight can cost a fifth of what the same energy costs at a motorway rapid charger, and that single factor swings the maths more than anything else.

Charging: the number that matters most

A typical family EV travels around 3.5 miles per kilowatt hour in mixed real-world driving. At a standard home tariff of roughly 25p per kWh, that works out at about 7p a mile. On a dedicated overnight EV tariff it can fall below 3p. At a public rapid charger charging 79p per kWh, the same mile costs around 23p — comparable to, or worse than, a frugal diesel.

This is why our calculator asks about your parking situation before anything else. Access to a driveway is worth more to your running costs than the badge on the bonnet.

Servicing and maintenance

Electric cars have no oil to change, no cambelt, no clutch and no exhaust. Regenerative braking also means brake pads and discs last considerably longer. Typical annual servicing sits around £220 for an EV versus £400–£460 for petrol or diesel.

Tyres are the exception: EVs are heavier and torquier, and tyres can wear noticeably faster if you drive enthusiastically.

Insurance

Insurance is one area where EVs are often more expensive. Repair costs are higher, specialist labour is scarcer, and battery damage can write a car off. On average, expect to pay somewhat more than the petrol equivalent — a gap that has narrowed but not closed.

Road tax (VED)

Since April 2025, electric cars pay standard-rate VED like everything else, and new EVs priced above £40,000 also pay the Expensive Car Supplement for years two to six. The old zero-rated advantage is gone, so do not build it into your sums.

Depreciation: the invisible cost

For anyone buying new, depreciation dwarfs fuel. Used EV values fell sharply in 2023–24 as supply grew, and although they have stabilised, EVs still typically retain slightly less value over three years than comparable petrol cars. The flip side is that used EVs are now excellent value for buyers.

• Buying new: depreciation is usually your biggest single cost.
• Buying used at three years old: someone else has absorbed it, and low running costs work in your favour immediately.