Long-Term Savings from Driving Electric

You’ve probably heard it all before — electric vehicles (EVs) are the future. They’re quiet, green, and undeniably sleek. But beyond the environmental halo and the latest tech, there’s a practical question that keeps popping up: do electric cars actually save you money in the long run?

The short answer? Yes — but the reality is layered. While EVs can cost more upfront, their long-term advantages are where the real magic happens. From significant fuel savings to reduced maintenance and tax perks, the electric vehicle cost benefits add up quietly, mile after mile.

This guide breaks down the real numbers and tangible advantages of owning an EV over time. Whether you’re an eco-conscious motorist or simply someone trying to reduce expenses, here’s a detailed, down-to-earth look at how much you can truly save by going electric.

The Bigger Picture: Understanding EV Savings Beyond the Sticker Price

Before we get into the details, it’s worth reframing the conversation. Car ownership costs aren’t just about what you pay at the dealership. They include:

• Running costs (fuel, charging, servicing)
• Road tax and government incentives
• Insurance and depreciation
• Time savings and convenience factors

So while the initial cost may raise eyebrows, let’s explore why that price tag tells only part of the story.

Fuel Savings: Where the Real Difference Begins

Charging vs Filling Up

Let’s get straight to the point: charging an EV is far cheaper than fuelling a petrol or diesel vehicle.

Average Fuel Costs (UK 2024):

• Petrol: £1.45 per litre
• Diesel: £1.55 per litre
• Electricity: ~14p per kWh (off-peak home tariff)

A typical electric car uses around 15–20kWh per 100 miles, which translates to roughly £3–£4 per 100 miles. In contrast, a petrol car using 7 litres per 100 miles at £1.45/litre comes to £10+.

Annual Fuel Comparison (12,000 miles):

• EV charging at home: ~£400
• Petrol car: ~£1,800
• Diesel car: ~£1,700

That’s a potential saving of £1,300–£1,400 per year. Multiply that over five years, and you’re looking at upwards of £6,500 saved — without ever visiting a petrol station.

What If You Don’t Have Home Charging?

Using public chargers can be more expensive (especially rapid ones), ranging from 40–85p per kWh. Still, with savvy planning and occasional use of free chargers at supermarkets or work, you can manage costs effectively.

Maintenance and Servicing: Simpler Machines, Smaller Bills

Electric cars are mechanically simpler than internal combustion engine (ICE) vehicles. With fewer moving parts, no oil to change, and no exhaust systems or clutches, the long-term upkeep is refreshingly light.

Typical EV Maintenance Includes:

• Tyre rotations and replacements
• Brake pad inspections (used less thanks to regenerative braking)
• Cabin filters and coolant checks
• Occasional software updates

Estimated 5-Year Servicing Costs:

• EV: £1,000–£1,500
• ICE: £2,500–£3,000+

EV savings here can exceed £1,500 over a typical ownership cycle. Plus, less time at the garage means more time on the road (or the sofa).

Road Tax and Other Perks: The Free Ride (For Now)

In the UK, electric vehicles currently benefit from zero Vehicle Excise Duty (VED). However, this will change in April 2025, when EVs will start paying a standard rate.

But for now, you’ll save:

• £180/year in road tax
• £15/day in London Congestion Charges (until 2025)
• £12.50/day for driving into ULEZ zones

5-Year Savings Snapshot (for city drivers):

• Road tax: £900
• Congestion and ULEZ fees: £3,000–£4,000
• Total: £4,000–£5,000 in potential savings

Insurance: A Mixed Bag

This is one of the few areas where EVs can currently cost a bit more.

Why?

• More expensive components (notably batteries)
• Specialist repair networks
• High-tech features like advanced sensors and cameras

Average Premium Comparison:

• ICE car: ~£650/year
• EV equivalent: ~£800/year

Over Five Years:

• ICE: £3,250
• EV: £4,000
• Difference: ~£750

Not ideal, but as EV adoption grows and insurers gain better data, prices are expected to stabilise. Some companies now offer EV-specific policies with added perks like charging cord cover and battery health protection.

Depreciation: Levelling the Playing Field

All cars lose value, but EVs have had a rocky start due to uncertainty around battery life and resale markets. Thankfully, that’s changing fast.

What’s Improving?

• Battery warranties (typically 8 years/100,000 miles)
• Growing demand for used EVs
• Greater public confidence in EV longevity

Certain models, like the Tesla Model 3 or Kia e-Niro, now retain value as well as — or better than — petrol rivals.

Home Charging Setup: A One-Time Investment

Installing a home charger isn’t essential, but it’s incredibly convenient — and usually the most cost-effective way to charge.

Installation Cost:

• £800–£1,200 upfront
• Offset by grants (e.g. OZEV £350) if eligible
• Smart chargers optimise charging during off-peak hours

Long-Term Benefits:

• Faster, cheaper charging
• Integration with solar panels or home energy tariffs
• Avoid reliance on expensive public networks

EV-Specific Incentives and Support

Governments (especially in the UK and EU) offer various supports for EV ownership, including:

• Interest-free loans (e.g. in Scotland)
• Workplace charging schemes
• Free parking in some boroughs
• Grants for home charger installation
• Salary sacrifice schemes for employees

These small wins accumulate into serious long-term benefits — especially for families and professionals.

Real-Life Story: Alex’s EV Journey in Manchester

Alex, a teacher from Manchester, bought a used Renault Zoe in 2021. Initially nervous about battery life and public charging, he now swears by the switch.

“I was spending nearly £2,000 a year on fuel and another £600 on servicing. Now, I charge at home for about £30 a month, and the only thing I’ve had to replace in two years is my wiper blades.”

Alex’s total savings since switching? Around £3,000 in two years — not to mention the sheer joy of driving past every petrol station without a second thought.

Long-Term Financial Comparison: EV vs Petrol

Let’s assume you own each vehicle for five years and drive 12,000 miles per year.

Result: Even with a higher purchase price, EV savings over five years can exceed £2,000–£3,000, depending on your driving habits and setup.

Hidden Benefits That Add Even More Value

Beyond pounds and pence, there are quality-of-life wins that come with EV ownership:

• Quieter rides (no engine noise)
• Instant torque for quicker acceleration
• Fewer trips to the garage
• Home charging = time saved
• Lower emissions = cleaner conscience

And with low-emission zones becoming more common in UK cities, EVs offer peace of mind as urban regulations tighten.

Drive Smarter, Save More

Suppose you’re weighing up whether an EV is truly worth it. In that case, the answer is clear: for most drivers, the electric vehicle cost benefits far outweigh the initial investment — especially over a 5–10 year span.

From slashed fuel savings and minimal servicing, to tax breaks and growing infrastructure, the numbers are on your side. Add in the quieter drives, smarter tech, and reduced emissions, and it’s a compelling financial and lifestyle case.

So, is now the time to go electric? If you’re planning to own your next car for several years and have access to home charging (or a solid charging network), an EV could well be the smartest purchase you make this decade.