The Electric Vehicle Revolution: The Cost Advantage of Going Electric

We’ve witnessed a remarkable shift towards sustainable transport in the last few years, with electric vehicles driving that change., EVs are a great way to reduce your carbon footprint and combat climate change. But beyond the environmental benefits, one of the key advantages of EVs lies in their cost-effectiveness, especially when compared to traditional petrol or diesel cars.

Take a look at our rundown of all the key costs to help you work out if an electric car lease is the right move for you.

EVs run on electricity, which is still considerably cheaper than petrol. The cost per mile for electricity is substantially lower than that of petrol with the popular Renault Zoe costing around 10p per mile. And that's on a standard tariff, with an off-peak tariff like Intelligent Octopus Go that cost would get even lower.

Charging at home, if you can, is usually the most convenient and cheapest way to charge an EV. Installing a home charger costs around £1,000, but government grants could fund up to 75% of the cost. Even better, you can get one installed for free as part of your electric car lease, with our ultimate EV package.

The availability and accessibility of public charging networks also have an impact on how financially savvy an EV may be for you. Over the past few years, significant investments have been made to expand charging networks worldwide. Octopus Electroverse makes it even easier, with over 60% of the UKs public chargers available on one, easy to use, app. As charging stations become more widespread and fast-charging technology improves, you can benefit from the convenience of charging your car here, there and everywhere.

EV’s come out at about 23% more cost effective than petrol or diesel cars. This is because EVs have fewer moving parts than their fossil fuelled counterparts, resulting in lower maintenance costs. They don’t require oil changes, and regenerative braking systems reduce wear on brake pads, leading to fewer replacements. They also don’t need servicing as much, with the recommended mileage before having a service being 18,000 miles.

In a standard petrol car you’ll pay around £165 per year in road tax, whereas with an electric car you won’t pay anything until at least 2025.

Congestion charges are also popping up all around the country. In London It costs £15 per day for petrol and diesel cars to drive in the congestion charge zone, but EVs release no tailpipe emissions, so you’ll pay nothing. Even if you don’t drive in London, it is still something to consider as the UK moves towards cleaner air in our biggest cities.

If you are getting an electric car lease through our salary sacrifice scheme with your employer, you’ll pay much less tax in BiK contributions. The current rate, which is fixed till 2025, is only 2% for electric cars compared to as much as 40% for petrol and diesel cars

When comparing traditional cars to electric cars, it’s worth doing the sums on the total cost of ownership over the lifetime of the car. For electric cars, you’ll find the effects of depreciation are normally offset by a lower total cost of ownership.

All vehicles experience depreciation due to factors like wear and tear, market demand, technological advancements as well as their general condition. The depreciation of EVs can also be influenced by battery degradation and improvements in battery technology. This happens as electric cars are so new the tech is constantly evolving so they can age quicker in that respect. But this is nothing to worry about whilst leasing as you can get a brand new EV at the end of each lease.

Resale value can also vary dramatically across the UK. As the electric car has come of age this volatility has reduced greatly and because of continous system updates, some electric cars now are holding their value stronger than their petrol counterparts. Some petrol cars will become collectors pieces and will steal headlines. But on the whole, with the 2030 ban not far away electric cars will continue to trimph. The future of the electric car also has value as  an energy asset that we are only just exploring with things like Intelligent Octopus Go.

Transitioning from a petrol or diesel vehicle to an electric vehicle is a great step towards a greener, fairer future. While leasing an EV may seem more costly, The long-term cost advantage and lower operating expenses make EVs an incredibly appealing financial choice, especially with our leasing schemes. On our salary sacrifice scheme you are able to save up to 40% on the cost of leasing an EV. Not only do you get a brand new electric car every 2-4 years, but you also have servicing and maintenance included. If your company aren’t signed up yet, reach out to a member of our team for a quick chat. Or have a look at our personal lease plan, tailored specifically to help you make the switch to electric.

With environmental benefits and substantial cost savings, embracing electric mobility is a win-win scenario for both our planet and our wallets.