LeasePlan UK says that mid-size and compact electric vehicles (EVs) are now more affordable than petrol and diesel cars in the UK.
The findings from LeasePlan’s annual Car Cost Index, which analyses of the cost of owning a car – including fuel, depreciation, taxes, insurance and maintenance in 22 European countries including the UK, improves on last year’s analysis that found that only mid-size EVs were more affordable.
For a mid-size EV, such as the Volkswagen ID.4, the total cost of ownership (TCO) is £724 a month, which is £95 less than the TCO for an equivalent petrol model such as a Peugeot 508, and £37 than an equivalent diesel, such as the Opel Grandland X.
For a compact EV, such as the Citroen e-C4, the TCO is £646 per month, which is £72 less than the TCO for an equivalent petrol model such as the Volkswagen Golf, and £63 less than an equivalent diesel model such as the Opel Crossland.
The cost savings are largely down to EVs having the lowest rate of fuel/energy costs, and EV drivers currently paying zero road tax until 2025, keeping the TCO low for drivers, says LeasePlan.
Alfonso Martinez, managing director of LeasePlan UK, explained: “As EV uptake continues to gain traction in the UK, drivers across the country should be considering their options for going electric.
“With both compact and mid-size EVs now more affordable than their petrol and diesel counterparts, driving electric has never been more accessible, which midst a background of soaring fuel costs, will be especially encouraging for the UK public.
“What’s more, the 2030 ban on the sale of new petrol and diesel vehicles and the expansion of Clean Air Zones across the country will continue to provide financial incentive for Britons to switch to EVs.”
The automotive industry has made great progress to bring electric driving costs to their current level, but the work doesn’t stop here, adds Martinez.
“To prove its credentials as a world leader in the fight against climate change, the UK Government must prioritise investment in charging infrastructure,” he said.
“With the recent announcement that the Home Charge Grant will be unavailable to certain homeowners from April 2022, it is clear that there is still a job to be done in developing charging infrastructure and enabling financial incentives to encourage the switch to an EV – but it’s positive to see the Government allocating investment to other properties such as rentals and transport hubs.”
Key findings from LeasePlan’s 2021 Car Cost Index are:
- EVs are cost-competitive with petrol and diesel vehicles in the sub-compact, compact, mid-size standard and mid-size premium segments in the UK.
- EVs in the premium mid-size (D2) segment are fully cost competitive compared to internal combustion engine vehicles (ICEs) in 17 countries, including: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom.
- EVs in the compact (C1) segment are fully cost competitive compared to ICEs in 14 countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom.
- The average monthly cost of driving a car varies hugely across Europe, from €743 (£629) a month in Greece to €1,138 (£963) in Switzerland.
- Relative to GDP, the total cost of ownership is highest for drivers in Switzerland and Portugal, and lowest for drivers in Denmark and Germany.
- Poland is the cheapest place to drive a petrol car, while Greece is the cheapest place to drive a diesel car
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