More than 80 per cent of British drivers can save thousands of pounds by switching to a battery electric vehicle (BEV), according to a new report from independent transport research firm New AutoMotive.
Billed as the most comprehensive study ever undertaken on the costs of driving BEVs, the Cost of Drive Electric (CODE) research took into account total cost of ownership for fifty different battery EVs across 480 scenarios.
The study examined both new and used BEVs and considered various charging scenarios and cost comparisons across the most popular vehicle models at three different annual mileages. It looked for the total cost of BEV ownership, including all types of purchasing, charging, insurance, servicing, taxation, and depreciation.
According to New AutoMotive’s CODE research, more than 80 per cent of people buying a BEV in the United Kingdom will save money compared to an equivalent petrol car, with savings on average of £5,850 (around $A12,000) across the term of ownership.
In 90 per cent of scenarios, consumers who are able to charge an EV at home would save by switching, though this number drops to 58 per cent of scenarios if drivers have to rely entirely on public charging.
British tax incentives offered through salary sacrifice for purchasing a BEV mean that for drivers charging mostly at home, 97 per cent of scenarios result in savings, with an average of £4,700 over the period of ownership.
“For higher-rate taxpayers with access to a salary sacrifice scheme, driving electric is a no-brainer, regardless of charging method,” the report’s authors said. “There is no scenario in which a driver, even a high-mileage driver reliant on public charging, does not benefit financially.”
When buying used EVs, the British market demonstrates the value of a more mature market, with used BEVs cheaper to buy than petrol counterparts for 80 per cent of the models reviewed in the study.
“On average, a BEV was £2,781 cheaper than its petrol equivalent. Notably, 9 models (26%) were over £5,000 cheaper, and 2 models were more than £10,000 cheaper.”
For drivers with driveways where they can charge their own car, the CODE research found that driving electric was cheaper in 90 per cent of scenarios, with an average saving over five years of charging at home of £5,317.
This gets more complicated for those without driveways and relies on the average annual mileage driven.
Insurance was typically around £88 more expensive per year, but lower servicing costs were around £79 less, therefore almost completely offsetting the difference.
Published in an effort to combat confusion and misinformation around the costs of electric vehicles, the CODE research highlights the long-term benefits of driving an EV as well as the need for long-term government support to build up a healthy EV sector that can create an abundant fleet of used EVs.
The full ‘Cost of Driving Electric’ report is available online here.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.