Electric cars hit price parity with petrol on monthly lease

We’ve found that the median monthly lease price for an electric car in the UK is now £369, compared with £409 for the median petrol car listed on a leading comparison site.*

This means drivers can now switch to an electric vehicle and save more than £1,600 over the course of a typical lease through lower monthly payments alone. When lower charging costs, reduced maintenance and protection from fluctuating petrol prices are included, the potential savings become even greater.

For years, electric vehicles were viewed as the more expensive option. However, falling battery costs, increased competition between manufacturers and the arrival of more affordable EV models are rapidly changing the market. Electric cars are becoming mainstream, with many models now available for less than £300 per month.

Several popular EVs are now cheaper to lease than their petrol or hybrid equivalents:

• The Dacia Spring EV is available from around £199 per month, compared with approximately £225 per month for the petrol Dacia Sandero, creating a potential lease saving of around £1,248.
• The Vauxhall Frontera EV is available from roughly £279 per month, versus around £303 per month for the Vauxhall Frontera Hybrid, saving drivers approximately £1,152 across a lease.
• The Citroën ë-C3 starts from around £279 per month, compared with roughly £294 per month for the petrol Citroën C3, offering savings of around £720.

The savings do not stop at monthly lease costs. EV drivers can typically save thousands more through cheaper home charging, fewer moving parts and lower servicing and maintenance costs compared with petrol and diesel cars.

We also include additional support such as servicing, maintenance, repairs and discounted home chargers, helping drivers gain greater certainty and control over their monthly motoring costs.

The UK electric vehicle market has matured rapidly in recent years. Increased competition, stronger supply chains and major advances in battery technology have helped reduce prices, while driving ranges have improved and public charging infrastructure has become more accessible.

This follows recent Autotrader data showing that new electric cars are now cheaper than petrol cars on average for the first time when discounts and government incentives are included.

Our CEO, Gurjeet Grewal, said: “This is a major turning point for UK drivers. For a long time, many people assumed electric cars were the more expensive option, but the market has changed significantly.

“Today, many electric vehicles are cheaper to lease than petrol, diesel and hybrid alternatives. Once drivers factor in lower charging and maintenance costs, the long-term financial benefits become even more obvious.

With petrol prices rising again, more people are looking for ways to reduce costs and protect themselves from future price increases. There has never been a better time to switch to electric.”

* Based on a 48-month lease term, 3 months upfront and 5,000 miles per annum. Prices compared between Octopus Electric Vehicles and Leasing.com