More than 80% of customers save money by driving an EV, says new report

Thinking about going electric? Chances are, it’ll save you money.

More than 80% of EV buyers in 2025 will spend less compared to running a petrol car, according to a new report from Electric Vehicles UK.

The research, conducted by independent think tank New AutoMotive, is the most in-depth analysis yet of electric vehicle (EV) costs in the UK. Covering both new and used EVs, the study compares total ownership costs of EVs vs petrol and diesel cars. This includes:

• Purchase price
• Charging
• Insurance
• Servicing
• Tax
• Depreciation
  
  

Using real-world data from 50 different EV models, the report looks at multiple ownership methods (such as salary sacrifice and PCP finance), different charging habits, and three mileage levels (5,000, 8,000 and 10,000 miles).

Want to know more? Let's break down the report’s key takeaways.

For those who do save, the average total saving over the time they own the car is around £5,850 (based on 35 used EVs). That’s the kind of money petrol drivers typically spend on fuel in five years. It’d also cover two first-class flights to New York or a brand-new, top-of-the-range e-bike. These savings are even more likely for those who charge at home, with 90% of them benefiting from the switch, compared to just 58% of those relying entirely on public charging.

Thinking about making the switch? We’ve got a range of brand-new and nearly new EVs, with flexible finance options to suit every budget.

Salary sacrifice makes EVs a “no-brainer”

The most cost-effective way to get behind the wheel of a brand-new EV is through a salary sacrifice scheme. In fact, the report found that 97% of new EVs are cheaper than petrol alternatives for those using salary sacrifice.

Higher-rate taxpayers benefit the most, saving thousands even when using public charging. For basic-rate taxpayers, savings vary depending on mileage, but in most cases, EV drivers still come out ahead​.

Our Octopus EV salary sacrifice scheme is one of the UK’s most popular, offering an all-inclusive package that covers your car, servicing, insurance, and even a free home charger or 4,000 miles of free public charging.

The report also finds that where you charge makes a huge difference to your savings. Home charging is the most cost-effective way to power an EV, with drivers able to take advantage of cheap overnight rates on smart tariffs.

For those without a driveway, public charging costs can be higher, but there are still ways to save.

At 5,000 annual miles, over 60% of used EVs were still more affordable over a five-year term than petrol and diesel cars. And even more drivers without home charging could save if they had access to a community charging service like Co Charger.

Electric Vehicles UK calls for urgent government action to make public charging fairer and cheaper, including:

In the meantime, though, there are plenty of ways to save. If you’re charging at home, Octopus Energy’s Intelligent Octopus Go tariff offers some of the lowest overnight rates, helping you keep running costs down. And when you’re on the go, Electroverse gives you access to thousands of charge points across the UK with a single card and app.

Intelligent Octopus Go customers also get additional discounts across the Electroverse network. Plus if you’re charging at home, with EV Saver, you’ll benefit from low overnight charging rates through Intelligent Octopus Go. And, for when you’re on the road with Electroverse, you’ll get exclusive discounts at partners like Osprey and Be. EV, along with savings through Plunge Pricing events. The more you drive, the more you save!

EV prices are falling, the used market is thriving, and home charging remains the cheapest way to fuel a car. With more affordable EVs launching each year and salary sacrifice schemes making them accessible, switching has never been more simple.

We’re here to help you every step of the way, from choosing the right car to setting up home charging and unlocking the biggest savings.

Want to see how much you could save?