Comparison · 2025
Electric Car vs Petrol UK 2025 — True Cost
EVs win on running costs but lose on upfront price. From April 2025, EVs also pay full road tax for the first time. Here\'s the real total cost of ownership comparison.
5-Year Total Cost (10,000 miles/year)
Tesla Model 3 (£40,000) vs BMW 3 Series Petrol (£35,000):
| Cost | EV (5 yr) | Petrol (5 yr) |
|---|---|---|
| Initial cost | £40,000 | £35,000 |
| Fuel/charging | £2,500 (5p/mile) | £7,500 (15p/mile) |
| Road tax (VED) | £985 (£10 yr1 + £195×4 + £425×3 supplement) | £985 (similar) |
| Insurance | £4,500 (~£900/yr) | £3,500 (~£700/yr) |
| Maintenance + tyres | £1,500 | £3,500 |
| Depreciation (~50%) | £20,000 | £17,500 |
| Total over 5 years | £29,485 | £32,985 |
EV saves ~£3,500 over 5 years here. Bigger savings for higher-mileage drivers (15-20k miles/yr).
EV Salary Sacrifice — Where EVs Dominate
Through company salary sacrifice with 3% BIK in 2025/26, a £45k EV typically costs a higher-rate taxpayer £350-450/month all-in (insurance, maintenance, road tax included). Equivalent personal lease ~£600/month. Petrol equivalent BIK ~30-32% = £900+/month effective cost.
When EV Wins
- Higher mileage (12,000+ miles/year)
- Have home charging (off-street parking + wallbox)
- Company car / salary sacrifice arrangement
- Long ownership (5+ years)
- Live in low-emission zone (ULEZ in London etc.)
When Petrol Wins
- Low mileage (under 7,000/year)
- No home charging possible
- Need maximum range / towing
- Short ownership (1-3 years — EV depreciation worse)
- Tight budget — used petrol cars much cheaper
FAQs
Are EVs really cheaper to run than petrol?
Per mile, yes: home charging EV ~4-7p/mile vs petrol ~15-18p/mile. Annual savings of £1,500-£2,000 are typical for 10,000-mile drivers. But EVs have higher upfront costs (£8,000-£15,000 premium), higher insurance, and worse depreciation in some segments. Total cost of ownership is roughly even now — was much worse for EVs 2-3 years ago.
Do EVs still pay £0 road tax?
NO — from April 2025, EVs pay road tax (VED) like petrol cars. £10 first-year rate then £195/year standard from year 2. Cars over £40,000 list price (including most EVs) also pay £425/year «expensive car» supplement for 5 years. This was a major April 2025 change.
What about EV via company car / salary sacrifice?
This is where EVs win HUGELY. Benefit-in-Kind for EVs is just 3% in 2025/26 (rising to 5% by 2027/28). For a higher-rate taxpayer, a £40k EV costs ~£40/month in BIK tax. The same petrol car at 32% BIK would cost ~£430/month tax. Salary sacrifice EVs are some of the best UK tax efficiency available.
How much does it cost to charge an EV at home?
At standard tariff (~27p/kWh in 2025): a Tesla Model 3 (60kWh battery, 250 mile range) costs ~£16 to fully charge — ~6p/mile. Off-peak tariffs (Octopus Go, Intelligent Octopus) charge at 7-9p/kWh between 00:30-04:30 — drops cost to ~2p/mile.
Car Calculators
Calculators for this topic
Fuel Cost Calculator
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Car Running Cost Calculator
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MPG Calculator
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Road Tax Calculator
Calculate Vehicle Excise Duty (VED/road tax) based on fuel type and CO2 emissions.
Disclaimer: Figures are illustrative. Actual costs depend on usage, insurance profile, charging tariff and specific models.