“Electric cars save you money” – We’ve all read the headlines, now it’s time to separate the fact from the fiction. So how much can I save? An electric car can help save the planet, but it can also save you a lot of money. We’ll go through some of the biggest cost savings below.
Although there are a lot of ways to save with an electric car, the first that comes to mind for most people is the saving in fuel. Our monthly fuel bills can be huge, with the average annual fuel bill coming in at over £1000.
The amount you spend at the pump each year depends on three factors: your annual mileage, the fuel efficiency of your car and the cost of fuel. Given average fuel efficiency of 36 mpg for a petrol and 43 mpg for a diesel and recent fuel prices (around 125 p/litre for petrol and 127 p/litre for diesel), the typical petrol car consumes £157.9 of fuel for every 1,000 miles travelled; the diesel costs £134.3 or 15% less. Source: Nimblefins
With an electric car we can avoid the pumps and charge our cars up at home on cheap, clean electricity.
How Much Does Fuel Cost to Drive 1,000 Miles?
- Diesel £134.3
- Petrol £157.9
- Electric (standard tariff) £37.90
- Electric (EV Tarriff) £13
VED or “road tax” has always been one of the unavoidable costs of motoring. Not so with an EV. Your electric car will be subject to zero road tax which can save hundreds (and in some cases thousands) over the conventional internal combustion vehicle.
Servicing & Maintenance
One of the best things about electric cars is that they are incredibly simple. An electric motor only has a couple of moving parts. A conventional petrol or diesel car will have hundreds of moving parts in it’s engine and gearbox. All of these components require lubrication and servicing, as well as being controlled by a myriad of computers. EVs avoid the vast majority of this with their simple drivetrains. There is no engine oil to change, no clutch to wear out, no belts to service. Some EVs such as Teslas, require no regular maintenance at all! A simple EV service will often comprise of changing the pollen filter (this is what cleans the cabin air for us to breath) and maybe changing the brake fluid every couple of years. That is all. These super simple services and checkups can be performed by most garages but we always recommend using a HEVRA approved garage if you have one near. Our branch in Cheltenham is always available if you are looking for a highly regarded EV specialist.
Company Car Tax
A huge benefit of EVs is the tax advantages applicable to company car drivers. Electric cars currently come with zero benefit in kind payment. This can save thousands of pounds on the tax bill for drivers. Take a look below at the benefit in kind table below for the rates as applicable in October 2020. That means for a pure electric vehicle with zero tailpipe emissions, company car drivers will be taxed at 0%, paying no BIK tax at all. Furthermore, the zero percentage rate is also extended to company car drivers in pure electric vehicles registered prior to April 6, 2020, who were already looking forward to a much reduced rate of 2% for 2020/21. The 0% rate will also apply to company cars registered from April 6, 2020, with emissions from 1-50g/km and a pure electric mile range of 130 miles or more. Both will then increase to 1% in 2021/22 and 2% in 2022/23. Pure electric company cars registered before April 6, 2020, will also increase to 1% and 2% in subsequent years, 2021/22 and 2022/23. Source: AM-Online For more information regarding company car tax, we recommend speaking to an accountant to see how much you could save.