INSIGHTS & GUIDES
Would an electric car save me money?
Would an electric car save me money?
The financial savings of an electric car are lower cost per mile compared to petrol cars and minimal servicing requirements saving you money during the life of the car.. Many customers ask 'is an electric car a zero emission vehicle? Yes, pure electric cars are exempt from charges in clear-air zones, another cost saving. So what are electric vehicles? An electric car is simply a car that runs on pure electric via a charging cable, similar to charging your phone. Are electric vehicles becoming more popular? Electric car sales are booming in the UK. In 2021, new EV registrations were 76.3% higher than the year before with 190,727 new electric cars being sold. This is still on the increase now with manufacturers set to void Fossil Fuel engines in the very near future.
Are electric vehicles expensive to service?
Recent research shows us that an electric car costs at least 30% less for EV service and EV maintenance than a traditional car (depending on the car, of course), this is largely due to the fact that they have fewer moving parts and fewer items prone to wearing out over time making EV repairs a lot less frequent. Central Vehicle Leasing can also include a full maintenance package with your new lease making the costs even more manageable!
Find out more about our vehicle leasing maintenance packages
Are electric vehicles expensive to insure?
Are electric cars cheaper insurance or are EV cars more expensive to insure? Insurance experts say electric cars can attract a higher premium - but they are coming down... Electric cars are generally hailed as cheap to run due to the cost of electricity compared to petrol or diesel, however insuring an EV can be more expensive. So why are electric cars more expensive to insure? Basically insurers have no historic data to work on regarding cost of repairs, and as a result, many insurers are extremely cautious in their predictions, raising premiums leading to higher prices. However, as electric cars become more commonplace and there is more data for the cost of repairs, so more insurers have entered the market and so costs have come down. It has also helped that electric cars are typically less likely to be stolen and more likely to be recovered when they are, due to their limited range and because charging them is relatively time-consuming and complex and the infrastructure to do so is not widespread. Electric car insurance has also come down in cost because repairers have gained expertise in how to fix the cars, and because of the realisation that there are fewer complex moving parts that can be damaged compared with an engine. It has also become apparent that the battery packs - the single most expensive part of an electric car are reasonably well protected in the event of an accident, reducing the risk of costly replacement.
As with any car insurance, shop around between insurers prior to purchase, investigating all options to comparison sites to smaller bespoke insurance specialists. Common tips for reducing your insurance bill, such as keeping the car in the garage and highlighting any advanced security systems, also apply.
Is it worth getting an electric car over a petrol car?
As a customer you may be thinking when can you no longer buy petrol cars or when should I stop buying petrol cars and will petrol cars be banned? The government's ban on the sale of new petrol and diesel cars will come into effect from 2030 with the sale of hybrids being outlawed from 2035. After 2030 you will still be able to drive a petrol car or buy second hand, the ban only affects the sale of new petrol vehicles.
Are electric cars more reliable than petrol cars?
The latest technology often takes a while to become as reliable as what it replaces e.g. it was years before you could count on your mobile phone to make a call without cutting out while the landline was reliable each and every time. The same is true in the automotive industry, by going electric you are often signing up to be a beta tester.
So are electric cars more reliable than petrol cars? Recent survey by Which found that electric cars are less reliable than petrol equivalent. A survey of nearly 50,000 drivers found that 31% of EV owners had experienced a fault in the first12 months compared to 19% of petrol drivers. However, the study showed that the majority of problems with EVs were software related rather than mechanical which could generally be fixed more easily and often without having to visit a dealer. So the findings should be taken 'with a pinch of salt'.
Is it worth getting an electric car?
You may ask is it worth getting an electric car now or if you get a car via your company is it worth getting an electric company car? The answer is yes, in the long run, you absolutely save money. When you buy an electric car there is a high up-front cost, but your electric vehicle ends up costing less over a lifetime. By leasing a vehicle the up-front cost is born by the finance company as you are just paying the depreciation of the car over the term with your monthly payments so it really does make sense to lease an EV vehicle rather than is it worth it to buy a used electric car. By buying a used EV the main cost will be any repairs or replacing the battery which may be very costly, by leasing your are transferring this burden to the finance company.
To conclude, do you really save money with an electric car? The main benefit is much lower cost per mile in addition to exemption from charges in clear-air zones and minimal servicing requirements. With the government banning the sale of new petrol and diesel cars by 2030 then the way forward is definitely EV.
