Report finds that large majority of EV buyers will save money over their car's lifetime
Thu 27 February 2025
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A new report by New AutoMotive finds that 80% of people buying a battery electric vehicle in 2025 will save money over their vehicle's lifetime. The average overall lifetime saving across all scenarios of owning an EV was £5850.
Commissioned by not-for-profit Electric Vehicles UK, the 'Cost of Driving Electric' report looked at the total cost of ownership of 50 different battery EVs, across 480 scenarios. The report provides a comprehensive, data-driven analysis of the total cost of BEV ownership. This study considered all associated costs, not just purchase price and charging, but also servicing, insurance, taxation, and depreciation. It covers the whole market, including new and used vehicles and a wide range of charging scenarios.
The report found that the vast majority of people who can charge at home will make significant savings over the lifetime of their BEV. However, for those without off-street parking, for a large majority (42%) buying a BEV is currently more expensive over its lifetime.
At the report launch event, held at Octopus Energy's HQ in London, much of the discussion focused on the challenge of making EV ownership beneficial for all users. The higher rate of VAT levied on public charging than home charging (20% vs 5%) was highlighted as a key factor, but there was general agreement that other measures need to be introduced to bring down public charging costs and help ensure greater fairness across user groups in the transition to electric motoring
Dan Caesar, CEO of EVUK, said: “It is our mission to present the whole picture and not just present a partial – or even partisan – picture, of the realities of driving electric. EVUK was launched to bring the EV industry together, as one, and better educate mainstream drivers around common uncertainties and explain the many benefits of battery EVs, to accelerate uptake in the UK. The ‘Cost of Driving Electric’ is the first of many initiatives that Electric Vehicles UK will deliver for drivers and its members."
Ginny Buckley, TV Presenter and Founder/CEO of Electrifying.com commented: “Although the upfront purchase price of a new EV may be marginally higher in some cases, our comprehensive analysis reveals that lower maintenance and running costs can save drivers thousands of pounds over the vehicle’s lifetime. In today’s economy, where every pound counts, it is essential to recognise that the real cost of owning an EV is far more competitive than many car buyers realise."
John Rainford, UK Country Manager for on-street charging company JOLT, which contributed to the publication of the report, commented: “While the data clearly shows the financial benefits for most drivers, it also highlights the challenge for those without home charging. On-street public charging needs to be both accessible and affordable if we want to see mass EV adoption.”
Image: Zemo Partnership
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