Driving an electric vehicle can bring with it many cost savings when compared with traditional combustion engine vehicles.
This section has all the information to inform you on all these savings you would be likely to make if you made the switch to an electric vehicle.
One of the greatest benefits of driving an electric vehicle are the massive fuel savings you can make.
For example, a full charge of a Huyundai Kona with a 64kWh battery would cost £8.96 which works out to 3.7p per mile (based on an electricity cost of 14p/kW). For this, you could expect a real range of 240 miles. Furthermore, it is possible to reduce this cost even further by switching to an energy provider with an electric car tariff, also known as economy 7. An EV tariff can reduce your cost of electricity by up to 50% meaning its even cheaper to charge your electric vehicle. For example, the same charge of the Hyundai Kona could be £4.48 (1.9p per mile) if you were to switch to economy 7. Driving the same distance in a combustion engine vehicle which have an average fuel cost of 12p per mile would cost you £28.80.
There is currently no road tax to pay on a full EV unless it exceeds £40,000.
There is no road tax to pay on a full electric vehicle unless it exceeds £40,000. For vehicles over £40,000 there is annual tax charge of £310 for the first 5 years (the same additional tax applies to combustion engine vehicles over £40,000). Plug-in hybrid electric vehicles (PHEV) emitting less than 50g/km carry a discount of £10 on both the first year rate and the standard rate meaning a cost of £0 in the first year and £130 in the subsequent years after. The same additional tax of £310 applies to PHEVs if they exceed the £40,000 mark. For more information, click here.
Electric Vehicles can save owners money on maintenance as there are fewer things to replace.
For example, with a full EV, there is no need to change items such as spark plugs, air filters, oil filters or to even replenish the oil in the vehicle. Further to this, due to regenerative braking (where the electric motor is used to slow down the vehicle whilst generating charge for the battery), electric vehicles do not need brake pads and discs to be changed as frequently.
This means that over 4 years/60,000 miles you could make a saving of £1234.60 on an e-Golf compared with an equivalent combustion engine Golf. (Figures obtained from Go Ultra Low)
There are many other savings that can be made as a result of driving an electric vehicle such as free parking or exemption from the congestion charge.
The Congestion Charge is a £11.50 daily charge for driving a vehicle within the charging zone between 07:00 and 18:00, Monday to Friday. You can register to receive a 100% discount if your vehicle produces less than 75g/km and meets the Euro 5 standard. Any vehicle registered as new with the DVLA after January 1st 2011 is deemed to meet the Euro 5 standard and you can check the vehicle's CO2 emissions on the V5C. Registration cost is £10 and needs renewal each year.
In addition to the congestion charge, the t-charge is a £10 daily charge on-top of the congestion charge. If however, you drive a vehicle which qualifies for the congestion charge discount then you also qualify for the T-charge discount.
Electric vehicles are able to get reduced or free parking in some areas of the UK when charging.
Check with your local borough to see if this applies to your area.
SAVINGS FOR BUSINESS
Businesses and company car drivers can make huge savings by switching to a plug-in or full electric vehicle.
BENEFIT IN KIND (BIK)
Benefit In Kind (BIK) is the tax that company car drivers pay if they get a vehicle as a part of their job. Electric vehicles, both full electric and plug-in hybrid vehicles carry with them large cost savings over their diesel and petrol counterparts. Currently, BIK is 13% for both PHEVs and EVs compared to around 18% for the lowest category diesel. Although this 13% is due to go up to 16% in 2019, it is then dropping down to 2%.
ENHANCED CAPITAL ALLOWANCE (ECA)
An Enhanced Capital Allowance (ECA) allows a business to write off the whole cost of an asset against taxable profits in the year of purchase. ECAs are available on plug-in vehicles which emit less than 50g/km and mean they qualify for a 100% First Year Allowance (FYA). Zero emission goods vehicles are also eligible for 100% FYA however, don't qualify for both FYA and the Plug-in Van Grant. The government announced in Budget 2016 that the 100% FYA will be extended until April 2021.
As well as the above, 100% FYA allowance is available for the installation of charging infrastructure.
Learn more about what types of electric vehicles there are and how they work as well as the grants available.
Charging a EV
Learn more about the process of charging an electric vehicle as well as how charging on the public network works.
Read through our frequently asked questions to see if your question is already answered.
CHECK OUT THE NEWS
Read articles hand picked by the expert to see what's happening in the world of EVs.
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