With petrol prices soaring, it is no surprise that many young drivers in the UK are switching to electric cars to tackle running costs. But can electric cars really cut down on fuel expenses?

Although electric cars will most likely cost more upfront than petrol cars, slow depreciation and higher projected residual values help to narrow down buying and financing costs while also keeping running costs at an unparalleled low.

The benefits of electric cars

Electric vehicles come with a myriad of benefits, including:

• Low environmental impact
• No congestion charges
• Lower running costs
• Renewable electricity tariffs
• Better driving experience
• Government funding
• Free parking
• Reduced noise pollution
• Increased resale value

One of the most rewarding advantages of driving an electric vehicle is its lower impact on the environment. Pure EVs have no tailpipe, and therefore do not emit any exhaust gases. This reduces local air pollution, particularly in congested cities.

Annual savings

While the environmental benefits are enough to win some drivers over, it is understandable that others will be wondering about the financial benefits.

The good news is, you can expect to save around £663 a year on running costs by driving an electric car, which equates to £3,339 saved over 5 years on fuelling the car alone.

Low maintenance

Electric cars require less maintenance than their petrol or diesel equivalents. This is because the engines in non-electric models are made from hundreds of moving parts, increasing the likelihood of something going wrong. In contrast to this, the components of a battery are much simpler.

EV batteries also have long warranties – typically eight years – which tends to be more than the warranty for the car itself.

Do electric vehicles pay road tax?

If an electric car is pure battery (in other words, you need to charge it to drive it), then you do not have to pay road tax. Drivers of these cars are also exempt from paying the London congestion charge (£15 a day) or the Ultra-Low Emission zone.

Road tax is massively responsible for CO2 emissions, so driving an energy efficient car will allow you to save hundreds per year on road tax.

Government grants to lower purchase prices

In an effort to encourage drivers to choose low-emission cars, the government is now offering grants that can effectively reduce the purchase price of a new electric car. The car dealer will reduce the price by the amount of the grant, so the driver will not need to take any extra steps to secure the grant money – just simply pay less for their new car.

Which cars are eligible for the government grant?

Electric vehicles must meet the following requirements to be eligible for the government grant, which is 35% of the purchase price, up to a maximum of £1,500:

• Zero tailpipe CO2 emissions
• It can travel at least 70 miles between charges without any emissions at all
• The cost is under £32,000 (referring to the recommended retail price including VAT and delivery fees)

In summary, you can certainly save money on motoring if you switch to an EV. These cars are cheaper to ‘fuel’, tax, and insure due to their low environmental impact and reliability. Despite the initial costs, electric vehicles have proven themselves to be a smart investment and an eco-friendly way of paying less for keeping your car running.

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