UK Data Shows EVs Cost Less to Own

Studies on EV customer satisfaction and cost comparisons, such as the recent report from Electric Vehicles UK, continue to give signals that EV adoption will increase significantly in the years ahead. 

Eighty percent of UK drivers can save money by switching to an EV, according to a new Cost of Driving Electric report from Electric Vehicles UK. The data shows the average driver can save approximately £5,850 across the average life of a vehicle, which reflects an annual savings of £690 for used EVs and over £2,000 for new purchases.

The goal of the study was to provide a data-driven analysis of the total cost of ownership (TCO) of a personal Battery Electric Vehicle (BEV) ownership. It considers all associated costs, including purchase price for new and used cars, charging, servicing, insurance, taxation, and depreciation. Various charging scenarios and models were considered to ensure a comprehensive analysis.

It’s well known that EVs save on maintenance and fuel costs, but the higher sticker prices have left the public with the perception that EVs are more expensive.

Rather than recount the depth of the information in this report on cleantech insiders, I suggest readers download the report, and I just provide a few highlights and conclusions.

• Used EVs are cheaper! For 80% of the models reviewed, used models are £2,781 on average cheaper to purchase Internal Combustion Engine (ICE) counterparts. This may be due to the perception that a rapidly changing EV market makes used models obsolete, i.e., always two-steps behind the new models. However, I know people on their third EV or have earlier models, and they are still satisfied with their purchase.
• Public charging needs to be more available. Government action is needed to reduce public charging costs and improve charger reliability, particularly for drivers without off-street parking and home chargers. This also applies drivers who need to charge while on the road, since on-the-road charging is key to moving EVs to the early majority phase of the market. 
• Drivers that go EV don’t go back. The study cites numerous other sources that show 9 out of 10 EV owners are committed to an EV for their next purchase. Seventy eight percent of those EV owners state cost-effectiveness as one of the main reasons for their high satisfaction.
• EVs will become the choice for the average car owner. The combination of lower TCO, increasingly competitive purchase prices, and the expansion of public charging will make EVs THE most economical and practical driving choice. It's unclear when we'll reach that tipping point, and it will be different for each geography. However, this is what Chinese and other forward thinking automakers well understand, and why they’ve investing so much in new exporting EV models.

Though this study in UK focused and considers the country’s incentives for EVs, the primary conclusions apply across all geos. Even if the US repeals incentives for purchasing EVs, the total operating costs are cheaper over the life of the ca, and the increase in competitive models at different price points will make EVs roughly purchase cost equivalent with their ICE counterparts.

Conclusion. It’s time to put ICEs on ice and electrify our transportation system.