Is an electric car cheaper than petrol overall?

Over a full ownership period, EVs are often cheaper to run — but not always to buy. The higher upfront cost of most EVs means you need to drive sufficient mileage to recoup the premium through lower running costs. For high mileage drivers who can home charge, the case is strong. For low mileage drivers or those relying on public charging, the economics are much less clear.

What is the break-even mileage for an EV vs petrol?

Break-even varies significantly by vehicle pairing and assumptions. A rough guide: for a like-for-like comparison where the EV costs £5,000 more to buy, with home charging saving approximately 8–12p per mile in fuel costs, the break-even point is approximately 40,000–60,000 miles. Higher mileage drivers break even faster; lower mileage drivers may never fully recoup the purchase price premium.

What costs are lower for EVs vs petrol?

Lower for EVs: energy cost per mile (home charging), servicing frequency and cost (no oil, spark plugs, exhaust), brake wear (regenerative braking reduces brake pad consumption significantly), road tax before 2025 (now equalised), and company car benefit in kind tax for business drivers.

What costs are higher for EVs vs petrol?

Higher for EVs: purchase price (EVs carry a price premium at equivalent spec), insurance (higher repair costs, parts availability, specialist repairers), tyres (heavier vehicles wear tyres faster and EV-spec tyres cost more), home charging infrastructure (wallbox installation), and battery replacement if required outside warranty (rare but expensive).

Do EVs depreciate faster than petrol cars?

The depreciation picture is mixed and evolving. Early EVs (pre-2020) depreciated sharply as ranges improved and newer models made them obsolete quickly. More recent EVs from established manufacturers have shown more stable residual values. Battery health certification and remaining warranty transfer are important factors that support used EV values.

How does company car tax compare for EVs vs petrol?

Significantly lower for EVs. As of 2026, pure electric cars attract a Benefit in Kind (BiK) tax rate of 2–3% of the car's list price, compared to 20–37% for high-emission petrol and diesel cars. For higher-rate taxpayers choosing between an EV and a petrol company car, the monthly tax saving can be substantial — sometimes several hundred pounds per month.

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EV vs Petrol · Cost Comparison

EV vs Petrol Costs

Lower running costs but higher purchase price. The true comparison depends on your mileage, charging access, and whether you are comparing new or used. Here is the full picture.

DVSA DataDVLA RecordsFree · No SignupUpdated 2026

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Updated 13 June 2026·6 min read·Reviewed by Ste Robinson, MotR

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Quick Answer

EVs have lower running costs per mile (especially home charging) but higher purchase prices. Break-even for a £5,000 price premium: roughly 40,000–60,000 miles. Company car tax: dramatically lower for EVs (2–3% BiK vs 20–37% for petrol). High-mileage home-chargers typically save money. Low-mileage or public-charging-only drivers: the case is much weaker.

EV vs Petrol: Lower and Higher Costs

EV costs less

Fuel/energy: ~4–6p/mile (home) vs ~15p/mile (petrol)

Service intervals: less frequent, fewer consumables

Brake wear: regenerative braking dramatically extends pad life

Company car BiK tax: 2–3% vs 20–37%

No exhaust, no oil changes, no spark plugs ever

EV costs more

Purchase price premium over equivalent petrol

Insurance: higher repair and parts costs

Tyres: faster wear due to heavier vehicle weight

Home charging infrastructure: wallbox installation

Public charging: can approach or exceed petrol cost per mile

EV vs Petrol FAQs

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Ste Robinson

Founder, MotR · Last reviewed 13 June 2026

Ste Robinson is the founder of MotR, helping UK drivers check MOT history, tax status, vehicle records and ownership information using official DVLA and DVSA data.

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