Is it Cheaper to Run an Electric Vehicle or a Petrol Car? (2025)

2024 data from comparison site Compare the Market states that electric cars are £528 cheaper to own and run than petrol cars.

If you’re in the market for an electric car, you might notice that the upfront purchase price, or even the monthly leasing costs, are often higher than those of an equivalent petrol or diesel model. However, don’t let that deter you.

While the initial outlay for an electric vehicle (EV) can be more expensive, that extra cost is often cancelled out by significantly lower running costs. From refuelling to maintenance and repairs, electric cars can be substantially cheaper to run than their petrol-powered counterparts.

Our experts explore all the ways electric vehicles can save you money – and where they might fall short – so you can make an informed decision before making the switch.

Initial Purchase Price

The upfront cost of an electric vehicle has historically been higher than that of a petrol car. However, the gap is narrowing:

• EVs: Prices have become more competitive, especially for used models. With government support, such as the Plug-in Car Grant (no longer available for new private EVs but still relevant in the second-hand market), initial costs can be offset to some extent.

• Petrol Cars: Generally cheaper to buy outright, particularly on the second-hand market.

Verdict: Petrol cars often win on initial price, but EV prices are falling, and leasing options are making them more accessible.

Fuel vs. Electricity Costs

This is where electric vehicles pull ahead significantly.

• Petrol: As of 2025, petrol costs remain volatile, often ranging between £1.50 and £1.80 per litre. The average UK driver covering 7,500 miles per year might spend over £1,000 on fuel annually.

• Electricity: Charging an EV at home during off-peak hours can cost as little as 7p per kWh. A full charge (typically around 60 kWh) costs roughly £4–£5, giving 200–250 miles of range. That works out to potentially under £400 per year.

Verdict: Running costs for EVs are significantly lower if you’re able to charge at home. Public rapid charging is more expensive but still often under petrol prices.

Maintenance and Servicing

Electric vehicles have fewer moving parts than petrol cars. There’s no engine oil to change, no exhaust system, no clutch, and far fewer components prone to wear and tear.

• EVs: Lower long-term maintenance costs. However, battery health should be monitored, and replacement (if needed) can be costly, though rare within the first 8–10 years.

• Petrol Cars: Require regular oil changes, exhaust and clutch maintenance, and are more likely to experience mechanical faults over time.

Verdict: EVs are generally cheaper to service and maintain. At our Guildford garage, we offer full electric vehicle servicing to keep running costs low.

Tax and Insurance

• Road Tax: Until April 2025, EVs were exempt from Vehicle Excise Duty (VED). From April 2025, EVs registered after April 2017 will pay a flat rate of £190 per year. Petrol cars pay the same standard rate, but many pay more in the first year, depending on CO₂ emissions (up to £2,745 for high-emission models.

• Insurance: EV insurance can be slightly more expensive due to higher repair costs and specialist parts. However, this is balanced by reduced risk of mechanical failure and fewer insurance claims on average.

Verdict: Road tax savings and insurance differences are minimal.

Depreciation

This can vary greatly depending on the model and market conditions.

• EVs: Used EV values have been volatile but are stabilising as demand increases and supply improves.

• Petrol Cars: Depreciate more steadily, but with the upcoming 2035 ban on new petrol and diesel car sales, resale value may drop more sharply over time.

Verdict: Historically, petrol cars depreciate less, but the future favours EVs as infrastructure and demand grow.

Charging Infrastructure and Convenience

• EVs: Charging at home is the most convenient and cost-effective option. Public charging is improving rapidly across the UK, including in Guildford and surrounding areas.

• Petrol Cars: Refuelling is faster and more widespread, but this advantage is narrowing.

Verdict: If you have off-street parking and can install a home charger, EVs offer major convenience. For flat or urban dwellers, public charging availability is improving.

So, is it cheaper to run an electric vehicle or a petrol car?

Petrol cars still hold an advantage in upfront costs and refuelling convenience, but the long-term savings of EVs are becoming harder to ignore.

At our Guildford MOT centre, we offer MOTs, repairs, and full servicing for both electric and petrol vehicles. Whether you’re making the switch to electric or sticking with a trusted petrol model, we’re here to keep your vehicle running efficiently and safely.

Need EV servicing or MOT advice? Contact us today to speak to one of our expert technicians.