Electric vs Petrol: How to Work Out the Real Cost Over 5 Years
Purchase price, energy, maintenance, insurance and resale value: a fair method for comparing two cars.
An electric car often costs more to buy, but the sticker price does not tell the whole story. To compare fairly, think in terms of total cost of ownership.
What to include
- Purchase: price, any incentives and the cost of finance.
- Energy: electricity at home and at public chargers, or fuel.
- Maintenance: usually lighter for an electric car.
- Insurance: compare model by model.
- Equipment: a home charger if you need one.
- Resale value after five years.
The method
Add up every cost over the period, subtract the estimated resale value, then divide by the distance driven. You get a cost per kilometre that can be compared from one car to another.
The more you drive and the more you charge at home, the better an electric car looks.
Read next: Home EV Charger Guide: How to Choose the Right Wallbox
