You want a great car.
What you don’t want is for it to drain your pockets. But list price isn’t the only thing you need to consider.
Especially when you’re weighing up whether to go electric or stick to petrol cars.
While petrol cars can be cheaper to buy upfront, that doesn’t always reflect what drivers really pay over time. Fuel, maintenance, tax, and how you access the car all play a much bigger role in day-to-day affordability.
That’s why comparing electric cars vs petrol cars properly means looking at all the costs combined, including:
- Purchase or leasing costs
- Fuel vs charging
- Maintenance and servicing
- Tax and other running costs
Some of these costs still favour petrol cars in the short term. Others strongly favour electric vehicles.
Below, we break down each cost area in detail to show how electric cars and petrol cars really compare in the UK, where the biggest differences come from, and when an electric car genuinely works out cheaper to run.
Cost of electric car vs petrol: All costs compared
When comparing the cost of an electric car vs a petrol one, it’s easy to focus on the upfront price. But that rarely reflects what drivers actually pay over time.
You need to look at all the costs combined, including:
- purchase or leasing costs
- maintenance and servicing
- fuel vs charging,
- taxes and other running costs
Some of these costs favour petrol cars upfront, while others strongly favour electric vehicles over the long term.
Below, we break down each cost area in detail to show how electric cars and petrol cars really compare in day-to-day ownership, and where the biggest differences actually come from.
Purchase and leasing costs
Electric cars typically have a higher list price than their petrol equivalents.
The average price of an electric car in the UK is £43,896. But there are models like the Dacia Spring which can be purchased for around £15,000. The real reason the average cost is so high is because the EV category is full of luxury models from the likes of Tesla, BMW, Audi, and Mercedes-Benz.
Because most UK drivers lease or finance their cars, monthly payments are often a more useful comparison than list price alone. On a private lease, electric cars still tend to cost more per month than petrol equivalents.
EVs cost more upfront because:
- Battery production relies on costly raw materials and advanced manufacturing
- Petrol engines benefit from decades of cost optimisation and scale
That said, the price gap has narrowed significantly in recent years. Battery costs continue to fall, more entry-level electric models have entered the market, and the used EV market has expanded.
Where EVs become a smarter financial choice is under salary sacrifice schemes. Instead of paying for a car from take-home pay, the monthly cost is deducted from gross salary, before Income Tax and National Insurance are applied.
*loveelectric’s salary sacrifice quotes include fully comprehensive insurance, maintenance package, tyre replacement and breakdown cover as standard.
Because electric cars are taxed more favourably than petrol cars in the UK, this structure can significantly reduce the effective monthly cost of an EV. In many cases, an electric car that looks more expensive on a private lease becomes cheaper than a petrol equivalent once tax savings are factored in.
To see how this works in practice, including real monthly examples, you can read our guide to salary sacrifice electric car prices.
🧑⚖️ VERDICT: Petrol cars can be cheaper to buy or lease but the gap is closing.
Fuel vs charging costs
Petrol prices fluctuate regularly, but UK drivers typically pay well over £1.40 per litre, which translates to around 12–18p per mile for an average petrol car, depending on fuel efficiency and driving conditions. For higher-mileage drivers, fuel becomes one of the largest ongoing costs of petrol car ownership.
Electric cars, by contrast, are far cheaper to “fuel”.
Costs are indicative and vary by vehicle efficiency, tariff, and driving style.
Home charging is the cheapest option, particularly when paired with off-peak electricity tariffs. Charging overnight on a smart tariff can bring running costs down to just a few pence per mile, making electric cars significantly cheaper to run day to day.
By shifting charging to quieter hours, drivers can dramatically reduce per-mile costs compared to both petrol and on-peak electricity rates. This is one of the main reasons electric cars are especially cost-effective for drivers with access to home charging.
Public charging does cost more, especially at rapid and ultra-rapid chargers, but it’s still often competitive with petrol, particularly for short top-ups or occasional long journeys.
For those relying on public infrastructure, choosing the right networks and apps can make a meaningful difference to costs. We have a list of the best EV charging apps available in the UK you can use to make charging more affordable and efficient.
And with loveelectric, drivers who access their car through a salary sacrifice scheme offered by their employer can also use a charge card. This gives access to thousands of public chargers across the UK, often at discounted rates, helping keep public charging competitive with petrol.
And for drivers considering home charging, installation costs and setup also factor in. UK homeowners can expect to pay between £800 and £1,500 for installation. That figure covers both the charger unit and professional installation.
You may also like: How much it costs to charge an electric car in the UK.
🧑⚖️ VERDICT: Charging an EV works out cheaper than fueling with petrol.
Maintenance and servicing costs
One of the clearest differences in the cost of running an electric car vs petrol comes from maintenance and servicing.
Electric cars are mechanically much simpler, which generally makes them cheaper to maintain over time. You can expect this category to cost about £100 per year.
Electric cars cost less to maintain because they have:
- Far fewer moving parts than petrol cars
- No oil changes, timing belts, spark plugs, exhaust systems, clutches, or gearboxes
- Regenerative braking, which reduces wear on brake pads and discs
As a result, routine servicing for electric cars is often cheaper and less frequent than for petrol equivalents. There’s simply less that needs replacing or repairing on a regular basis.
Petrol cars, by contrast, rely on complex engines and emissions systems that wear over time. As vehicles age, this often leads to unexpected repair bills, particularly for components like exhausts, clutches, and gearboxes.
If you get an EV through salary sacrifice, you can often bundle core running costs into a single monthly payment, including:
- Servicing
- Maintenance
- Tyres
- Breakdown cover
This removes many of the surprise costs associated with petrol car ownership and makes it easier to budget month to month. This is the case with loveelectric’s salary sacrifice scheme.
🧑⚖️ VERDICT: Electric cars are cheaper and more predictable to maintain than petrol cars.
Tax costs
Tax is a key factor in the cost of electric car vs petrol ownership, and it’s an area where the rules are evolving in the UK.
Petrol cars are subject to emissions-based Vehicle Excise Duty (VED), with higher-polluting models paying more each year. Electric cars were historically exempt, but this is changing as EV adoption grows.
From April 2025, electric cars pay standard VED, bringing them closer in line with petrol vehicles. On top of that, the Labour government has announced a new 3p-per-mile tax on electric vehicles, intended to offset declining fuel duty revenues as petrol and diesel use falls.
While this marks a shift in policy, it’s important to keep the wider context in mind:
- Petrol and diesel cars already pay significant tax through fuel duty
- The new EV per-mile tax remains lower than the effective tax paid on petrol driving
- EVs continue to benefit from other tax advantages, particularly in workplace schemes
If you do get an electric car through salary sacrifice, then there’s even more tax benefits to be had. EVs benefit from much lower Benefit-in-Kind (BIK) tax rates than petrol cars, which directly reduces the tax employees pay on a company car. And because the cost of the car is taken from your Gross salary, it reduces your Income Tax and National Insurance contributions.
🧑⚖️ VERDICT: Electric vehicles are the winner here, with lower tax rates imposed and tax benefits available through salary sacrifice.
You may also like: Employee tax benefits for EV schemes: How salary sacrifice with loveelectric saves you thousands
Are electric cars better than petrol cars? Looking beyond cost
Environmental impact
Petrol cars produce emissions every time you drive them. Electric cars don’t have tailpipe emissions, but they do have emissions elsewhere. These are from battery manufacturing and from the electricity used to charge them.
That’s why the fairest comparison is lifecycle emissions (manufacturing + driving + energy supply). Today’s battery-electric cars are typically much lower-carbon than petrol cars across Europe.
Great Britain’s electricity has been getting cleaner year-on-year, which means the emissions from charging an EV tend to fall over time, even if the car stays the same.
🧑⚖️ VERDICT: If you’re looking at the whole lifecycle, electric cars generally have a clear environmental advantage over petrol cars in the UK..
Driving experience and practicality
Electric and petrol cars feel different to drive.
One of the most immediate changes with an electric car is instant torque. Power is delivered smoothly as soon as you press the accelerator, without the need for gear changes. Around town, this can make driving feel more responsive and less effortful, particularly in stop-start traffic.
Electric cars are also much quieter at low speeds. With no engine noise or vibration, urban driving tends to feel calmer.
In terms of practicality, electric cars generally suit urban and suburban driving very well. Daily commutes, school runs, and local trips are easily covered on a single charge, especially when drivers can charge at home or at work.
Long-distance driving requires a bit more planning. While the UK’s charging network has improved significantly, longer journeys may involve charging stops and route planning that petrol drivers don’t have to think about.
For some drivers, this is a minor adjustment. For others, it’s an important consideration.
🧑⚖️ VERDICT: For most everyday driving, electric cars offer a smooth, quiet, and easy driving experience, particularly in towns and cities. Petrol cars can still feel more straightforward for frequent long-distance driving.
Reliability and longevity
A lot of people worry about reliability when it comes to electric cars—usually because of the battery. The good news is that modern EVs are generally very dependable.
Most electric cars come with battery warranties of around 8 years or 100,000 miles, so the most expensive part of the car is covered for a long time. And batteries don’t tend to fail suddenly, instead, range usually reduces slowly over many years.
Electric cars also have far fewer things that can go wrong. There’s no engine, clutch, gearbox, or exhaust system, which means fewer breakdowns and fewer expensive repairs as the car gets older. Petrol cars, on the other hand, have lots of moving parts that wear out over time.
And because EVs are so popular, new charging points pop up all the time. So you won’t find yourself in the middle of nowhere with a low battery.
🧑⚖️ VERDICT: Electric cars are simple, reliable, and easy to live with. With strong battery warranties and fewer mechanical issues than petrol cars, they’re no longer the risky option they’re sometimes made out to be.
So, are electric cars cheaper to run than petrol in the UK?
For most drivers, the answer is yes.
When you add everything up, electric cars usually come out cheaper than petrol cars on running costs alone. Charging is cheaper than fuelling, maintenance is simpler, and tax treatment is still more favourable in many cases.
That gap widens even further if you drive regularly or can charge at home.
Independent research backs this up. A recent study found that EV ownership costs are now up to 50% lower than those of equivalent petrol cars, once fuel, maintenance, and servicing are taken into account.
Where things really tip in favour of EVs is how you access the car. If you’re getting an electric car through your employer, salary sacrifice can reduce the cost even further by cutting Income Tax and National Insurance, often making an EV cheaper per month than a petrol alternative.
If you’re curious about how that works in practice, this guide walks through the process step by step: How to get a car on salary sacrifice
🧑⚖️ FINAL VERDICT: Petrol cars may still suit some drivers, but on running costs alone, electric cars now have the edge, and that advantage is only getting stronger. 💚
Salary sacrifice: The most affordable way to drive an EV
With loveelectric, you can access an EV through your employer, pay from your gross salary, and reduce Income Tax and National Insurance, often saving 30–60% compared to buying or leasing privately.
Ready to go electric via salary sacrifice?
- Check how much you could save with our EV salary sacrifice calculator
- Check your company’s eligibility
- Refer your employer if they don’t yet offer salary sacrifice
- Book a demo to see how loveelectric could save you and your employees big
Electric Cars vs Petrol Cars FAQs
Are electric cars cheaper to run than petrol cars in the UK?
For most drivers, yes. Charging is usually cheaper than buying petrol, maintenance costs are lower, and EVs still benefit from favourable tax treatment in many cases. If you charge at home or drive regularly, the savings are especially noticeable.
Are electric cars cheaper to run if you can’t charge at home?
They can be, but the savings are usually smaller. Public charging costs more than home charging, especially at rapid chargers. That said, EVs are still often competitive with petrol, and using the right charging networks, apps, or workplace solutions can help keep costs down.
What costs do electric cars avoid compared to petrol cars?
Electric cars avoid many common petrol-car costs, including:
- Fuel price volatility
- Oil changes and engine servicing
- Exhaust, clutch, and gearbox repairs
Fewer moving parts generally means fewer surprise bills.
Is an electric car worth it if I don’t drive much?
It can be. While high-mileage drivers see the biggest fuel savings, low-mileage drivers still benefit from cheaper maintenance, quieter driving, and tax advantages.
Will electric cars stay cheaper to run than petrol in the future?
All signs point to yes. Petrol prices remain unpredictable, while electricity costs are easier to manage, especially with off-peak charging. As the UK continues moving away from petrol and diesel cars, EVs are likely to benefit from continued investment in charging and long-term support.
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