The five-year cost of running electric vehicles: How different models compare

The RACV motoring club has released its annual running costs report for 2023, in conjunction with RACQ, that delivered an interesting insight into the purchase and running costs of electric vehicles in Australia.

The new GWM Ora came out as the cheapest over a five-year period, although it should be noted that the survey appears to have been done before the release of the new MG4 and the upcoming BYD Dolphin, which like the Ora have an up front price of less than $40,000.

Some of the popular pure EV models and 5-year total costs when travelling 15,000 km/year covered in the report included:

• Tesla Model Y RWD – $96,598
• Tesla Model 3 RWD –  $85,399
• BYD Atto 3 – $69,240
• Polestar 2 – $106,622
• MG ZS EV – $61,825
• Hyundai Ioniq 5 – $105,902
• Kia EV6 RWD – $106,268

Australia’s most popular EV in 2023, the Tesla Model Y, will cost $1,609.97 monthly over a period of five years which equates to $96,598. The monthly costs include:

• Loan repayments
• Registration and Insurance
• Fuel
• Servicing
• Tyres

The monthly Model Y fuel costs to travel 15,000 km/year in a Model Y were $55.17 which according to the report was based on an average domestic electricity tariff of 30.23 cents/kWh was used, while the power consumption from the manufacturer was also included. 

A similarly priced ICE vehicle like the Volkswagen Passat had a fuel cost of $181.80, more than three times the cost to fuel an EV.

These costs do come down if EV owners have rooftop solar at their homes, where the majority of the charging can occur.

Assumptions on tyres included a set of four tyres required for most vehicles along with the 12-volt battery which is used on most vehicles. It’s worth noting that new Tesla models include a lithium-ion accessory battery that does not require replacement.

Maintenance costs of the vehicle included dealer servicing where applicable. This is the case for most manufacturers that sell vehicles in Australia, including various brands with EV models.

On the residual values front, EVs also remained high when compared to conventional ICE vehicles. According to the report, the Volkswagen Passat with a similar on-road price to a Model Y, comes out at $29,500 after 5 years while the Model Y holds its value much better, coming in at $36,200. 

All in all, the push for EVs not only makes sense from a cost of ownership perspective, but it also holds much better when it comes to selling the vehicle on the used market. With growing interest in EVs, all these other benefits will convince many others to make the switch sooner.

The full run down EV ownership costs and total expenses for various models is provided below.