# Total Cost of Ownership: EV vs Petrol Over 5 Years

By EV Charge Cables · Published 18 October 2026

**The short version**

EVs typically cost more upfront but less to run: lower fuel costs, reduced servicing, and significant company car tax savings often offset the price gap over five years.

- Charging at home on a time-of-use tariff gives the lowest cost per mile
- Servicing is cheaper with no oil changes and reduced brake wear
- Company car BIK rates for EVs are substantially lower than for petrol cars

Buying an electric vehicle involves more than comparing sticker prices: the real question is what each car costs you over the years you own it. When you factor in charging versus fuel, servicing, road tax, and depreciation, the total picture often looks very different from the headline purchase price. This guide walks through each cost category qualitatively, explains which direction costs tend to move for EVs compared with petrol cars, and tells you exactly where to check current figures. For everything you need to get started with home and on-the-go charging, [browse charging cables by car](https://www.evchargecable.co.uk/ev-charging-cable).

| Cost category | Electric vehicle | Petrol car |
| --- | --- | --- |
| Purchase price | Typically higher upfront at equivalent trim level | Generally lower upfront |
| Fuel / charging cost | Lower per mile, especially on off-peak home tariffs | Higher per mile; subject to fuel price volatility |
| Servicing | Lower routine servicing cost; no oil changes, fewer brake replacements | Regular oil, filter, and brake servicing required |
| Road tax (VED) | Historically zero; rules now changing for newer EVs | Rate varies by emissions; older high-emission cars pay more |
| Insurance | Currently tends to be higher; narrowing as EV numbers grow | Mature market; competitive premiums across most segments |
| Depreciation | Variable; battery range anxiety affects residuals on older models | Broadly predictable; strong second-hand market |
| Company car tax (BIK) | Significantly lower BIK rate; large benefit for company car drivers | Standard BIK rates apply; higher for higher-emission cars |

### Is the purchase price of an EV actually higher?

At most trim levels, EVs still carry a higher list price than a comparable petrol car. Some of this gap is closing as battery production scales up, but in the current market you should expect to pay more upfront for similar interior space and equipment. If you are buying new, check whether the manufacturer offers a deposit contribution or finance deal that narrows the gap. Used EV prices have been volatile: check current listings on major classified sites alongside your new-car research rather than relying on assumptions about how much cheaper used EVs are.

### How do charging costs compare with filling up with petrol?

Electricity costs less per mile than petrol in most scenarios, but the exact saving depends on your tariff, how and where you charge, and how much you drive. Charging at home overnight on a time-of-use tariff typically gives the lowest cost per mile. Public rapid chargers are more expensive per unit of energy, though still generally below petrol on a per-mile basis. Your energy supplier's website and comparison tools such as Ofgem's consumer pages are the best places to check current unit rates. For fuel costs, the RAC's fuel watch tool publishes live UK pump prices.

### Does an EV really cost less to service?

EVs have fewer moving parts than petrol cars. There is no engine oil, no timing belt, no exhaust system, and no conventional gearbox to maintain. Brake wear is also reduced because regenerative braking does much of the work. In practice this means fewer line items on a service bill and longer intervals between some checks. Tyres, wipers, coolant, and cabin air filters still need attention. Battery health checks are becoming a standard part of EV servicing, so factor that in. Ask your manufacturer or independent EV specialist for a typical annual service cost for your model.

### What is the current road tax position for EVs?

Vehicle Excise Duty rules for EVs changed in April 2025. Previously, fully electric cars were exempt from VED. From April 2025 onwards, newly registered electric cars pay the lowest first-year rate and then move to the standard annual rate in subsequent years. The exact rates are updated each year and published on gov.uk under Vehicle Excise Duty rates. Check the current figures there before budgeting, as they will affect your five-year running cost calculation. Petrol cars pay VED based on their CO2 emissions, so the position for older and higher-emission petrol vehicles is typically worse.

### Why does EV insurance tend to cost more, and will that change?

EV insurance premiums have generally been higher than comparable petrol car premiums, reflecting higher repair costs, the relative newness of the technology, and the cost of specialist labour and parts. Battery repair or replacement following an accident can be expensive, and not all bodyshops have the training or equipment to work on high-voltage systems safely. As the number of EVs on UK roads grows and more repairers become accredited, premiums are expected to become more competitive. Always get multiple quotes and check comparison sites. Insurers also differ in how they handle home charger cover, so read policy details carefully.

### How does depreciation work differently for an EV?

Depreciation is one of the largest costs in any car ownership calculation. EV residual values have been harder to predict than those for petrol cars, partly because rapid development means older battery technology can look less attractive quickly, and partly because the second-hand EV market is still maturing. Some models have held value well; others have dropped sharply. A battery health report from the manufacturer or a specialist can reassure buyers and support a stronger asking price when you sell. Check valuations on CAP HPI or Glass's Guide for current residual predictions on the model you are considering.

### What is the company car tax advantage for EVs?

For anyone taking a company car, the difference in Benefit in Kind tax between an EV and a petrol equivalent is substantial. BIK rates are set by HMRC and depend on CO2 emissions. Fully electric cars attract a very low BIK rate compared with petrol cars of equivalent value, which can make the EV considerably cheaper in net monthly cost for a higher-rate taxpayer even if the list price is higher. HMRC publishes BIK rates on gov.uk, and your employer's fleet manager or a tax adviser can help you calculate the actual monthly saving based on your tax band and the specific vehicle. This advantage is one of the biggest reasons EV adoption has accelerated in fleet and company car markets.

**Quick tool:** compare the yearly running cost against a petrol car with our free [EV vs petrol cost calculator](https://www.evchargecable.co.uk/tools/ev-vs-petrol-cost-calculator).

### Frequently asked questions

#### Over five years, does an EV usually work out cheaper to run than a petrol car?

For many drivers, particularly those who charge mainly at home and cover a reasonable annual mileage, the lower running costs of an EV offset a significant portion of the higher purchase price over five years. The precise outcome depends on your electricity tariff, mileage, insurance costs, and the specific models you are comparing. Use current figures from your energy supplier and insurer rather than general estimates.

#### Where can I find current EV electricity tariffs?

Energy suppliers publish their tariff rates on their own websites and through Ofgem's comparison pages. Several suppliers offer EV-specific time-of-use tariffs designed for overnight charging. Octopus Energy, OVO, and British Gas are among those that have offered dedicated EV plans; check each supplier directly for their current offering and rates, as these change regularly.

#### Does battery replacement cost a lot over five years?

Most EV batteries are warranted by the manufacturer for around eight years or a specified mileage. Over a typical five-year ownership period, battery replacement is unlikely to be needed if the car is used and charged normally. If you are buying used, ask for a battery health report from the manufacturer or an independent specialist before purchasing, as battery condition affects both range and resale value.

#### Are EV tyres more expensive than standard tyres?

EV tyres are designed to handle the additional weight and instant torque of electric motors, and they tend to cost more than standard equivalents. They also wear at a different rate compared with petrol car tyres on the same model. See our separate guide on [EV tyre costs and wear](https://www.evchargecable.co.uk/blogs/guides) for more detail. Budget for this as part of your five-year running cost review.

#### What is the current VED rate for a new EV?

VED rates are updated annually and published on gov.uk. From April 2025, new electric cars pay the lowest first-year rate and then the standard rate from the second year. The exact figures change each Budget, so check the current Vehicle Excise Duty rates page on gov.uk rather than relying on any specific number quoted in an article.

#### Is it worth getting an EV if I can only charge at public points?

Charging exclusively at public points is possible but generally results in a higher cost per mile than home charging. If rapid public charging is your primary option, work out a realistic cost per mile using your local network's published tariffs and compare this with your current fuel spend. Many workplaces are also adding charging facilities, which can reduce reliance on public networks.

Understanding where EV costs are higher and where they are lower gives you a much clearer basis for making the right choice. For company car drivers the BIK advantage alone can tip the calculation firmly towards electric. For private buyers the charging cost saving tends to be the biggest ongoing benefit. To make the most of home charging, explore our range of [Type 2 charging cables](https://www.evchargecable.co.uk/type-2-charging-cables) and [portable EV chargers](https://www.evchargecable.co.uk/portable-ev-chargers) to find the right option for your car and home setup.

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