Today it is unsurprising that more and more people are converting to electric vehicles. In general, electric vehicles come with such a wide variety of benefits including massively reducing your environmental impact, future proofing your investment, enormous savings on running costs, maintenance and tax, and easy parking due to dedicated charging spaces that are everywhere now!
The market for electric vehicles is ever growing; with an already significant market share of 18.5%, and the sale of electric vehicles over-taking diesel vehicles in 2020. Factor in the government announcement of the plans to invest £1.3 billion into EV infrastructure, the plan to ban the manufacturing of petrol cars from 2030, followed by a ban of the manufacturing of hybrids in 2035, it is clear the direction of electric vehicles is only up!
One of the biggest concerns when investing in an electric vehicle is how much it is going to cost you, both in the short term and in the long term.
The initial cost of an electric vehicle can be quite daunting as they tend to be more expensive than a regular petrol or diesel car. This is because the materials used inside an electric car battery are rare and expensive, so instantly drive the price up. However, electric vehicles are still a fairly new technology, and as popularity, research and knowledge of electric vehicles and their technology continues to rise, cars will only become cheaper as manufacturing becomes more efficient.
Another very important thing to note is that the long-term running costs are so much cheaper than that of a regular petrol or diesel car, that over time you will certainly make your money back, and some!
Once your vehicle is purchased the only other costs are charging, which will be entirely dependant on your mileage and electricity prices, and maintenance, of which electric cars tend to require very little.
You can work out your charging costs by multiplying the size of your cars battery in kilowatt hour by the amount your electricity supplier charges per kilowatt hour. e.g. Tesla Model S holds a 100kWh battery, a standard public charging point will cost around 30p per kWh, so the total will be 100 x 30p = £30 to charge from empty to full. However, switch to a cheaper home charger which would cost around 12p per kWh, and the full charge will cost as little at £12.
Along with the all the standard savings you will benefit from by using an electric vehicle, e.g. smaller running costs and less maintenance, there will also be huge potential savings in your taxes!
- The Vehicle Excise Duty which costs the average petrol or diesel driver an average of £175 a year will cost an electric vehicle driver £0 provided the car is under the value of £40,000.
- You will benefit from a massive saving in fuel tax as nearly 60p of every litre of petrol is entirely tax.
- If you drive a company car, say goodbye to benefit-in-kind rates which have been reduced from up to 37% on petrol and diesel cars, to only 1% for electric vehicles from 2021 saving you up to £7000! Check this out:
Company Car Tax Calculator
Battery Capacity and Range
Another of the biggest concerns surrounding electric vehicles is the range a car can travel before needing to be recharged.
It is very straightforward: the larger the battery, the further the vehicle can travel. It is recommended that if you plan on taking long trips that you invest in a slightly more expensive vehicle with a larger battery, or you accept that you will have to recharge more frequently.
“Range anxiety” is a thing of the past with over 35,000 charging stations around the UK, so whether at home or out and about, even with a smaller battery, you will never have to worry about running out of charge!
The smallest batteries on offer are around 30kWh which provide around 120 miles; compared to the largest batteries which are up to 100kWh which provide around 300 miles. The price difference between these is staggering, as you could expect, so it is encouraged to only invest in the smaller battery cars – especially if you only have a modest commute and the capacity to invest in a home charging unit.
For more technical information regarding electric vehicle charging, please click here.