When evaluating the annual running costs of electric vehicles (EVs) compared to diesel cars, several key factors come into play: fuel (or electricity) expenses, maintenance, insurance, taxation, and depreciation. Here’s a detailed comparison:
Fuel/Electricity Costs
- Diesel Cars: Assuming an average fuel efficiency of 50 miles per gallon (mpg) and a diesel price of £1.49 per litre, driving 10,000 miles annually would cost approximately £1,361.
- Electric Cars: With an average consumption of 17.5 kilowatt-hours (kWh) per 100 miles, the cost varies based on charging methods:
- Home Charging: At a standard rate of 29p per kWh, the annual cost is about £508.
- Public Charging: Using public chargers at an average of 59p per kWh, the cost rises to approximately £1,033.
Therefore, EVs can offer significant savings on energy costs, especially when primarily charged at home.
Maintenance Costs
- Diesel Cars: These vehicles have complex engines with numerous moving parts, leading to higher maintenance needs and costs over time.
- Electric Cars: EVs have fewer moving components, resulting in lower maintenance expenses. Estimates suggest servicing electric cars is about 23% cheaper than servicing diesel or petrol cars over a three-year/60,000-mile period.
Insurance Costs
- Diesel Cars: Insurance premiums are generally based on factors like vehicle value, performance, and repair costs.
- Electric Cars: Insurance for EVs can be higher due to their higher purchase price and specialised repair requirements. Some studies indicate that electric car insurance premiums are 14% higher than their petrol or diesel equivalents.
Taxation
- Diesel Cars: Subject to Vehicle Excise Duty (VED) based on CO₂ emissions, leading to higher annual tax charges.
- Electric Cars: Currently exempt from VED, offering annual savings. However, starting in April 2025, EVs will no longer be exempt from road tax.
Depreciation
- Diesel Cars: Tend to depreciate steadily over time.
- Electric Cars: Initially faced higher depreciation rates, but recent trends show EVs retaining value better, especially as the market grows and technology improves.
Overall Comparison
While EVs often have higher upfront costs, their lower fuel and maintenance expenses can lead to reduced annual running costs compared to diesel cars. However, factors like insurance premiums and future tax changes should be considered. Individual driving habits, charging options, and specific vehicle models will influence the total cost of ownership.