What does an electric car really cost? The item-by-item breakdown.
The purchase price doesn't tell you much. What matters is total cost of ownership: depreciation, charging, servicing, insurance and tax. EVTrader works it out with you — free and without obligation.
In short: the total cost of an electric car
Depreciation is the biggest item: 15–25% in year one, then the curve flattens. Running costs are low: home charging costs around 5–9 pence per mile (vs 13–18p for petrol) and servicing costs 20–40% less. Since April 2025, EVs also pay Vehicle Excise Duty — £10 in year one for new cars, then £200/year. Indicative ranges, updated 2026-07-06. Tax source: gov.uk (VED rates).
Cost items at a glance
| Item | Order of magnitude | Good to know |
|---|---|---|
| Depreciation | 15–25% in year 1, then 10–20%/yr | The biggest single cost — heavily dependent on model and SoH |
| Home charging | ≈ 5–9p / mile | Depends on your electricity tariff and off-peak rates |
| Public rapid charging | ≈ 12–20p / mile | 40–80p/kWh on the motorway network — best kept for longer trips |
| Servicing | ≈ 20–40% less than petrol | No oil changes, no clutch, regenerative braking spares the pads |
| Insurance | Broadly comparable to petrol | Varies by model and vehicle value |
| Vehicle Excise Duty (VED) | £10 (yr 1) then £200/yr | EVs are no longer exempt since 1 April 2025 — see below |
Indicative ranges based on market data. Your own situation (mileage, electricity tariff, charging access) makes the difference — we calculate your exact case for free.
Vehicle Excise Duty (VED) on an electric car
Since 1 April 2025, electric cars are no longer exempt from VED. New EVs registered from that date pay £10 in the first year, then the standard rate of £200/year from 2026/27. EVs first registered between 1 April 2017 and 31 March 2025 pay £200/year; those registered between 1 March 2001 and 31 March 2017 pay £20/year.
Cars with a list price above £50,000 also attract the expensive car supplement — £440/year for 2026/27 — for five years from the second year of registration. A further change is planned: from April 2028 a separate electronic VED (eVED) mileage charge is due to apply, at 3p/mile for EVs and 1.5p/mile for plug-in hybrids.
Electric vs petrol: the difference in everyday use
Over 10,000 miles a year, home charging typically costs around £500–£900; the same mileage in petrol runs to roughly £1,300–£1,800. Add lower servicing costs and, for company car drivers, favourable tax treatment — the higher purchase price is often clawed back within a few years of ownership.
The exact tipping point depends on your mileage and access to home or workplace charging. The more you drive, the faster electric pulls ahead.
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Frequently asked questions about electric car costs
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