Drivers can cut yearly running costs by 70% if they switch to an EV

If you’re thinking about switching to an electric vehicle, we have some good news for you.

The latest research from our data insights team has found that electric vehicles can cost around a quarter of the price to run as petrol and diesel cars.

Using data from our online EV-4-Me quiz, designed for consumers to discover how an EV would fit into their lifestyle, we can reveal that drivers can expect average annual running costs of £722* when behind the wheel of an electric vehicle.

This is a whopping £1,933 cheaper than a comparable petrol car (£2,655 annual cost) and a substantial £1,636 less expensive than a diesel car (£2,358 annual cost).

These yearly running costs incorporate fuel, servicing and Vehicle Excise Duty and equate to monthly savings of £160 and £136 for petrol and diesel drivers respectively.

These insights are particularly pertinent when we consider that average petrol prices are at 176.88p per litre, while diesel currently costs 187.42p per litre**.

And affordability remains the top issue for would-be EV drivers, with 38% saying they cannot afford an EV, although 72% would make the switch if money wasn’t an issue***.

The cost of fuel

When looking solely at fuel costs, data from VWFS | Fleet’s fuel cost comparator illustrates that EV drivers using a home (7kW) charger can save £804 in annual fuel costs versus driving a petrol car, and £671 in savings compared with driving a diesel. These figures are based on driving 10,000 miles annually in a CUPRA Born^.

This tool allows drivers to see how much an electric vehicle can save them in fuel, for example on a single journey, per year or for contracted mileage. It also provides different options for the cost of EV charging, so people can see the typical difference in cost between home, public AC, rapid and ultra-rapid charging options.

Many people also worry about how far an electric car can go on one charge and whether this will suit their driving habits, but EVs are far more capable than people realise.

For example, the all-electric Volkswagen ID.3 can travel up to 340 miles on a single charge, which is in line with WLTP (combined) data. This is despite 75% of people expecting an electric vehicle to travel up to 300 miles on a single charge***.

How can you experience an EV

For drivers who are serious about driving an electric car, we now have two new avenues that people can pursue to experience driving an EV.

Firstly, motorists can get behind the wheel of an EV via the ‘try before you buy’ scheme from VWFS Rent-a-Car, which allows customers to test drive an electric Volkswagen ID.3 for up to seven days.

For more information, visit https://www.vwfsrentacar.co.uk/try-before-you-buy

Secondly, we also recently launched a pilot subscription service for the arrival of the award winning, all-electric CUPRA Born in the UK.

The service enables customers to take cars on a three-month subscription and is reflective of the automotive sector moving towards more flexible and convenient mobility solutions.

Find out more here and also feel free to try our EV-4-Me quiz, here.

What do the experts say?

Our CEO Mike Todd explained that folding an electric car into your everyday life is cheaper than most people realise.

He said: “The case for making the switch to electric is getting stronger all the time and some of the anxieties that drivers may have around cost, range and charging are proving to be less of an issue as EV technology continues to evolve at pace. Manufacturers and retailers have a greater duty than ever before to help educate consumers that the overall cost of an EV is not as big a barrier as once perceived, and in fact can be cheaper than most comparable petrol or diesel models.

“Naturally, the cost of living crisis has tightened many people’s budgets, so our role as a finance provider is to help consumers with these affordability issues, which is why we continue to develop propositions to assist customers make the transition to electric cars. Practical tools like our EV-4-Me quiz are great ways of showcasing the savings that can be made by embracing greener and sustainable travel.”

For more information on electric vehicles, visit our dedicated EV hub here.

READ MORE: Rising energy costs: How will this impact EV drivers?

READ MORE: How has the pandemic impacted the nation’s driving routines?

Notes:

*EV-4-ME is designed to offer guidance on which fuel type might be most appropriate for you, based on your answers to the questions provided. It should not be relied upon solely to inform your buying decision. For more information, visit https://customer.vwfs.co.uk/electric-cars/lifestyle.html

**https://www.rac.co.uk/drive/advice/fuel-watch/

***The data for this study was collected in May 2022 and comprises responses from 2,000 British adults. 

^https://www.vwfsfleet.co.uk/fuel-cost-comparator/