Are electric vehicles too expensive?

In recent years, electric vehicles (EVs) have become a hot topic of discussion as we strive to reduce our carbon footprint and transition to a more sustainable future. However, one lingering factor that has hindered the widespread adoption of EVs is that they are too expensive. Contrary to popular belief, the cost-barrier surrounding electric vehicles is gradually fading away, and the reality is that EVs can actually be more cost-effective than traditional petrol or diesel vehicles.

According to recent industry estimates, an EV can save £176 in running costs for every 1,000 miles driven [1]. The difference in running costs alone can make a compelling case for EVs as a financially viable alternative.

Furthermore, the lower maintenance requirements of EVs contribute to significant long-term savings. With far fewer moving parts than traditional internal combustion engine vehicles, EVs can mean lower maintenance and repair costs. This can add up to considerable savings over the lifespan of the vehicle.

Governmental efforts to incentivise eco-friendly transportation are paving the way for even greater cost savings. Tax incentives, including zero road tax and favourable company car tax rates, are now in place for EV owners.[2] These incentives make EV ownership not only cost-effective but also more attractive for budget-conscious motorists.

The positive shift in the market is evident in the growing availability of affordable, zero-emission models. As of May 2022, 24 EV models are priced under £32,000, compared to just 15 at the same time in 2021. With the continued reduction in production costs and advancements in battery technology, some industry forecasts predict that certain EV models could be priced competitively to their petrol or diesel counterparts well within the 2020s.[3]

According to the Auto Trader Retail Price Index, as of May 2023, used EV prices have fallen by 17.3% since the previous year. In the same period, the average prices of used petrol and diesel cars have increased by 6% and 4.3% respectively. [4]

This transformation in the EV market landscape is an encouraging sign for consumers and businesses alike. It is evident that electric mobility is no longer just a futuristic concept but a practical and attainable reality for motorists today.  As EVs become increasingly accessible and cost-competitive, we can expect a surge in adoption rates, leading us closer to a greener and more sustainable future.

We would love to hear your thoughts about this. Would you consider making the big switch to an EV?

[1] https://plc.autotrader.co.uk/news-views/press-releases/new-car-registrations-july-2022/

[2] https://www.gov.uk/government/collections/government-grants-for-low-emission-vehicles

[3] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1103266/common-misconceptions-about-electric-vehicles-leaflet.pdf

[4] https://plc.autotrader.co.uk/news-views/retail-price-index/