Drivers can cut yearly running costs by 70% if they switch to an EV

Electric vehicles can cost around a quarter of the price to run as petrol and diesel cars, according to Volkswagen Financial Services UK.

Data from VWFS’ online EV-4-Me quiz, designed for consumers to discover how an EV would fit into their lifestyle, found that drivers can expect average annual running costs of £722 when behind the wheel of an electric vehicle.

This is £1,933 cheaper than a comparable petrol car (£2,655 annual cost) and a substantial £1,636 less expensive than a diesel car (£2,358 annual cost). These yearly running costs incorporate fuel, servicing and Vehicle Excise Duty and equate to monthly savings of £160 and £136 for petrol and diesel drivers respectively.

These insights are particularly pertinent when we consider that average petrol prices are at 176.88p per litre, while diesel currently costs 187.42p per litre.

Research from the Volkswagen Financial Services UK insights team found that affordability remains the top issue for would-be EV drivers, with 38% saying they cannot afford an EV, although 72% would make the switch if money wasn’t an issue.

When looking solely at fuel costs, data from VWFS | Fleet’s fuel cost comparator illustrates that EV drivers using a home (7kW) charger can save £804 in annual fuel costs versus driving a petrol car, and £671 in savings compared with driving a diesel. These figures are based on driving 10,000 miles annually in a CUPRA Born.

Mike Todd, CEO at Volkswagen Financial Services UK, said: “The case for making the switch to electric is getting stronger all the time and some of the anxieties that drivers may have around cost, range and charging are proving to be less of an issue as EV technology continues to evolve at pace. Manufacturers and retailers have a greater duty than ever before to help educate consumers that the overall cost of an EV is not as big a barrier as once perceived, and in fact can be cheaper than most comparable petrol or diesel models.

“Naturally, the cost of living crisis has tightened many people’s budgets, so our role as a finance provider is to help consumers with these affordability issues, which is why we continue to develop propositions to assist customers make the transition to electric cars. Practical tools like our EV-4-Me quiz are great ways of showcasing the savings that can be made by embracing greener and sustainable travel.”

Want the latest Electric vehicle news in your inbox? Sign up to the free EV Powered email newsletter...