New EVs generally cost more to buy or lease than petrol or diesel equivalents. This is due to the cost of the batteries, specialist materials, and rapidly evolving technology. 
 
However, the gap is closing. In 2020, the average purchase premium of an EV over an equivalent ICE vehicle was 50%. By June 2025, that figure had fallen to 22% as more affordable models entered the market.
 
Example (2025): 
 
In February 2025, a new VW ID.3 Pro Match 59kWh (EV) cost £36,650, compared to £29,075 for a new VW Golf 1.5 TSI 150 Match (petrol). 
For a 36-month lease deal with a £5,000 deposit, the ID.3 Pro Match would cost £343 per month, compared to the Golf 1.5 TSI’s £335 per month.

Used EVs are also typically more expensive than used petrol or diesel vehicles, for similar reasons. According to AutoTrader’s Retail Price Index, in August 2025 the average prices were:

• Petrol: £14,641
• Diesel: £13,928
• Electric: £25,025

 However, used EVs are becoming more accessible as the market expands. Learn more in our guide: Should I buy a used EV? 

While EVs usually cost more upfront, lower running costs can quickly make up the difference, especially if you can charge your vehicle at home. 
 
Charging your EV at home costs around 8p per mile in kWh, while fuelling a petrol or diesel vehicle costs around 13p to 17p per mile. This can mean that charging a medium-sized electric vehicle costs around half the price of filling up a comparable petrol vehicle. Some energy suppliers also offer EV tariffs, allowing off-peak charging for as little as 3p per mile.
 
For the average driver travelling 592 miles per month, the cost of running an EV would be roughly £47 per month, compared with up to £100 for petrol or diesel. 

EVs are typically cheaper to service than ICE vehicles because they have fewer components and don’t require oil or filter changes, which also impacts the frequency of services.
 
As the expertise and materials become more available, these costs should fall further, reducing the cost of owning an EV even more. 
 
Example: Renault recommends servicing its petrol models every 9,000 miles, compared to every 18,000 miles for its electric Zoe. Every vehicle is different, always check your manufacturer’s recommendations.
 
According to The Car Expert, the average five-year servicing costs across vehicle type is: 

• Petrol/diesel/hybrid vehicles: £5,709
• Electric vehicles: £4,022

That’s a saving of £1,687 over five years, one of the key advantages contributing to lower lifetime electric vehicle costs.

Our research shows over a third (34%) of drivers consider repair and maintenance a concern when it comes to the cost of EV ownership. However, data shows these fears are largely unfounded. 
 
EVs have fewer moving parts and are generally reliable, which helps reduce maintenance costs. Probably the most expensive part of an EV is its battery, which can cost up to £8,000 to replace. However, most EV batteries are designed to last 10-20 years and carry warranties for at least the first eight. 
 
Overall, maintaining an electric vehicle costs 23% less than a petrol or diesel vehicle over a three-year, 60,000-mile period.

The cost of taxing an EV depends on the year it was registered: 

• 1st March 2001 – 31st March 2017: £20 annually
• 1st April 2017 – 31st March 2025: £195 annually (standard rate) 
• On or after 1st April 2025: £10 for the first payment, then £195 annually

Older EVs currently benefit most when it comes to tax, however new models will soon be taxed at standard ICE rates from 2025.

Despite lower running costs, EV insurance remains slightly higher than ICE equivalents, primarily due to parts and specialised labour. 
 
According to GoCompare, comprehensive insurance for an EV, costs about £572 per year, compared to £455 for an ICE vehicle, citing a £117 difference. 
 
However, as parts become cheaper and more mechanics qualify for EV servicing, insurance premiums are expected to drop, bringing the cost of owning an EV closer to that of ICE vehicles. 

Depreciation affects all vehicles, but EVs have historically depreciated faster than ICE vehicles due to initial higher prices, rapidly evolving technology and lower used demand. 
 
However, this is changing. With more EV on the road and growing consumer confidence, EV depreciation and resale values are stabilising. The government’s 2035 Zero Emission Vehicle (ZEV) mandate will also boost long-term demand, helping EVs hold value better over time. 

Clean Air Zones (CAZs) across the UK mean that depending on a vehicle’s age and emissions, ICE vehicles can incur additional charges when driving in cities such as Bristol, Sheffield. Resulting in a fee of around £10 per day. 
 
EVs, with zero exhaust emissions, are exempt from these charges, saving you up to £70 per week depending on your travel patterns.

Until 25th December 2025, EVs qualify for 100% discount on London’s Congestion Charges under the Cleaner Vehicle Discount (CVD). After this date, EVs will pay the standard £15 daily fee, meaning the cost of owning an EV in London may increase slightly after this date. 

The total cost of owning an EV depends on the make and model you choose, as well as the vehicle’s age, how and where you charge it, and your driving habits.
 
The table below gives an indication of potential new electric vehicle costs compared with a new petrol vehicle over one and five years of ownership.  

This comparison shows that while new EVs can cost more initially, their running costs, including charging, servicing and maintenance are substantially lower, saving nearly £4,300 over five years. 
 
As technology matures, insurance falls and new models reach price parity, the cost of EV ownership is expected to decline even further. 
 
For more information on buying and owning an electric vehicle, visit the EV Hub.