EV vs petrol: which really costs less to own?

Comparisons that only look at "pence per mile" for charging versus petrol are answering a narrower question than "which car costs less to own". Depreciation is usually the single biggest cost of running any car — often bigger than fuel or energy — and it applies whether the car is electric or petrol. A fair comparison has to weigh the full picture: depreciation, charging or fuel, insurance, tax, servicing and, where relevant, finance cost.

The cost categories that matter

• Depreciation — the difference between what you paid and what the car is worth when you sell or hand it back. This varies a great deal by make, model, mileage and market demand, for EVs and petrol cars alike.
• Charging or fuel — for an EV, this depends heavily on how much charging happens at home (typically far cheaper per unit) versus on the public network. For petrol, it's mileage, fuel economy (MPG) and the price at the pump.
• Insurance — quoted individually per car and driver; don't assume either fuel type is cheaper without checking.
• Vehicle Excise Duty (VED) — zero-emission cars stopped being exempt from VED for vehicles registered on or after 1 April 2025, and move to the standard annual rate from their second year, the same as petrol and diesel cars. Don't assume an EV pays no road tax — check GOV.UK's current rates rather than relying on an old exemption.
• Servicing, tyres and maintenance — EVs typically have fewer moving parts to service (no oil changes, for example) but can have higher tyre wear from instant torque and additional weight.
• Purchase price and finance cost — the starting point for depreciation, and any interest paid if the car is financed rather than bought outright.

A worked example

Illustrative figures only — not current prices. Over 3 years and 30,000 miles, comparing a car bought new as an EV against a comparable petrol equivalent might look something like this:

In this illustration the EV comes out slightly ahead overall, but not on every line — depreciation actually favours petrol here, and the EV's advantage comes mainly from charging being cheaper than fuel. VED is a wash between the two: both pay the same standard rate from their second year under current rules, which is why it isn't the deciding factor here that older EV-exempt figures might suggest. That's the point: the category driving the result varies car by car, and it can just as easily go the other way. Your own numbers — for your specific cars, mileage, and how you charge — are what actually decide it.

Last reviewed: 30 August 2026.