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How much are electric cars?

How much are electric cars?

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Is it expensive to buy an electric car? 

For many of us, cost is one of the most important things when buying a car, whether it’s electric, petrol or diesel. If you’re just dipping your toe into the electric car market, you might have heard they’re expensive. Like any car, the cost depends on what you’re after. A swanky model with all the bells and whistles will cost you more than a dependable family car or a zippy little city number. It also depends on whether you choose hire purchase (HP), personal contract purchase (PCP), buy the car outright or maybe through your business.

How much will a lease set me back? 

You can lease an electric car, like the Renault ZOE, from about £346.47 a month (February 2024) from our leasing partner CBVC. View our full range of electric cars to lease here with some available in as little as 30 days. 

With both leasing and PCP, you pay a fixed monthly fee to rent the car. Both have limits on the number of miles you can drive – this would be agreed when you signed up to the agreement and you might have to pay for any damage excluded from the British Vehicle Rental and Leasing Association’s Fair Wear and Tear guidelines when you give the car back.  
 
If you’re leasing, you’ll hand the car back at the end. With PCP you can buy the car by making a final payment, called a balloon payment. Alternatively, you can just hand the car back. It’s more flexible than a standard lease, but can cost more.  

charger plugged into the car

What if I want to buy one outright? 

A Renault ZOE is available to buy from just under £30,000 (January 2024). For something a bit bigger, like a family hatchback, estate or SUV, you’d be looking at about £35,000 plus. 

Would a second-hand electric car work for me? 

If you just tend to potter about locally, to the shops, on the school run or to visit family nearby, you can pick up a used electric car like a 2018 Nissan Leaf on AutoTrader for under £10,000 (January 2024). You can drive it on longer journeys too but you may need to plan in charging stops due to the smaller batteries on older electric cars. To find public charge points on route to your destination, visit our public charge point map

If you’re interested in finding out more about the total cost of owning an electric car compared to a petrol or diesel vehicle, have a look at our Total Cost of Ownership calculator, which compares a number of electric cars with their petrol and diesel equivalents.

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right for me?

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How to buy an electric car

How to buy an electric car

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What are my options if I want to buy an electric car? 

If you want your next car to be electric there are three ways to get hold of one: buy one outright, lease one, or lease one with the option of buying it when your contract ends.

Buying outright

When you buy an electric car outright you just pay whatever the price is and the car’s yours. No interest added and no ongoing payments to make. It’s very straightforward and you’ll usually find good warranties on offer from the seller, especially if you’re buying brand new.

Buying outright with a loan or finance

If you’ve taken out a loan to buy your car, you’ll probably pay interest to the lender. You’ll still pay up front and immediately be the proud owner.

car dashboard

Leasing

Leasing is another way of saying ‘rent’ or’ hire’. You usually pay a deposit and make payments every month until your contract runs out, then you hand the car back. This is a great option if you like changing your car quite often. You can enjoy driving it without having full responsibility for it. The downside is you’ll need to look after it carefully and hand it back in good condition.

Leasing with an option to buy

PCP stands for Personal Contract Purchase and this means you lease the car in the usual way but when your contract runs out, you either hand your car back or pay a final lump sum to buy it. 

This is great if you want to try an electric car to see if you like it and keep your options open. It’s also good if you know you want to buy a car but paying the full showroom price up front is a bit of a stretch. It’s a way of spreading the cost.

And the government wants us all to move towards electric so there are other incentives too.

  1. Through your work. Some companies offer a salary sacrifice scheme where they deduct the money for your electric car lease before they deduct your tax. So the cost of the lease is usually the same, but you save money on tax.
  2. In Scotland you can get an interest-free loan of up to £28k on a new electric car and £20k on a used one. You buy your car and spread the cost without paying any interest.
  3. If you’re running your own business the benefit in kind on electric cars is 2% until 2025 so they can be a cost-effective company car. 

Is an electric car
right for me?

Discover electric cars that are available through our partner CBVC today.

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How much does it cost to run an electric car?

How much does it cost to run an electric car?

Electric cars are a great option if you want to save on running costs or go greener. And you’ll be ahead of the game before the planned 2035 ban on the sale of new petrol and diesel cars. But how much do they cost to run?

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How much can I save if I drive electric?

Cost of running an electric car is cheaper than you think. Switching to an electric car isn’t just kinder to the environment, it’s easier on your pocket, too. For tax, maintenance and charging, the electric car wins every time, especially if you can charge at home. What’s more, leasing an electric car can save you money in the long run, as it does away with depreciation. Of course, you’ll need to choose a car that’s right for you and suits your monthly budget. 

Osprey Public Charging for electric cars
Rapid Charging

Charging costs

If you fill up a 50mpg petrol car at £1.60 a litre, that works out at roughly 15p for every mile you drive.

A family car like the electric Hyundai KONA can do about 3.8 miles p/kWh, so charging is much cheaper. And with thousands of public charging points spread across the country, charging while out and about is now easier than ever.  

  • Charging at home (using an EV friendly off-peak rate of 12p/kWh) = 3p* a mile 
  • Charging at home (using a standard day rate of 44p/kWh) = 11p* a mile 

*Based on 4 miles per kWh and rounded to the nearest 1p. 
Prices correct as at December 202
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Electric car charging in the rain
Charging in the rain

What about car maintenance costs?  

  • Like most new cars, electric cars rarely break down. And because of regenerative braking, you won’t wear down brake pads as quickly as you would with a petrol or diesel car
  • Tyre wear is slightly higher than it is with petrol or diesel cars  
  • Service costs are often cheaper for electric cars because they have fewer moving parts

And because there aren’t any emissions from a tailpipe, car tax (or vehicle excise duty) on electric cars is currently zero until 2025. However, this will be changing from April 2025, following the announcement in the Government’s Autumn Statement. 

To find your dream electric car to lease, see our range of models – some available in as little as 30 days.

Electric car charging station

Is an electric car
right for me?

Discover electric cars that are available through our partner CBVC today.

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How does salary sacrifice work with electric cars?   

How does salary sacrifice work with electric cars?   

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Lease from your employer and save tax

A salary sacrifice arrangement might sound a bit scary – but it’s just a scheme where you swap part of your salary for a non-cash benefit from your employer.  
 
And that’s why this scheme could be really useful in helping you afford an electric car lease. 

How it salary sacrifice schemes works 

First off, you need to know if your workplace has a salary sacrifice scheme. 
 
If they haven’t, why not ask them to start one? There are lots of electric car manufacturers and leasing firms that already specialise in salary sacrifice schemes such as CBVC Vehicle Management Limited who can offer great advice.  
 
The scheme works by you leasing a new electric car through your employer for a fixed time, like a year. It means you pay for the lease from your salary before income tax and National Insurance are taken off – so you’ll save the tax you’d have paid on the lease. For example, if the lease payment is £400 per month then you won’t pay tax on that £400. 
 
By paying less tax, you’ll pay less overall than if you’d leased a car yourself away from work. 

charger plugged into the car

What could you save with a salary sacrifice scheme? 

CBVC Vehicle Management state you could save up to 40% (depending on your tax bracket) by using a salary sacrifice scheme compared to sorting things yourself.  

Even better, some salary sacrifice scheme packages include more than just the car lease. So you might also get maintenance, repairs, car tax, breakdown cover, insurance, a home charger and cables included too. 
 
Sound good? This is a win-win situation where your employer gets help to hit their green targets and save on some of their taxes. While you get a new electric car which you might not have been able to afford otherwise, such as a Hyundai KONA or a Mercedes EQB.  
 
If you’re interested in leasing a new electric car, most financial bods would recommend checking out a salary sacrifice scheme and then comparing it to other lease prices. Hopefully it’ll help you drive away the electric car you’ve always fancied. 
 
You can find out more about ways to finance an electric car in our how to buy an electric car article.

This article contains links to other sites. ElectriX is not responsible for the contents of any of these websites.

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Are there government grants to help me buy an electric car?

Are there government grants to help me buy an electric car?

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Government grants to help to buy an electric vehicle 

From the 14 June 2022, the following low-emission vehicles may be eligible for a plug-in grant: wheelchair accessible vehicles, mopeds, motorcycles, taxis, trucks and vans. The value of the grant will vary depending on the vehicle type. But the manufacturer takes that money off automatically, so you won’t find any saving on the showroom price.   

See the full list of eligible plug-in vehicles.  

In Scotland they’re also doing interest free loans – there’s a 6-year loan up to £28k for a new car and a 5-year loan, up to £20k, for a used one. You can find out more about these loans on the Energy Saving Trust’s website.

Charger plugged into the car

Government grants to install a electric car charge point 

The EV chargepoint grant has a £350 cap for installing a charge point in a flat or rented accommodation. The installer will take that money off your bill.

And, just like with the purchase schemes, things are slightly different in Scotland. You can apply in advance for a £250 grant in Scotland and get the discount reimbursed when you have a home charge point installed. There’s good news if you live in remote parts of Scotland too as you’ll get an extra £100 off. 

If you don’t have your own drive, your local council can get 75% towards on-street public charge points. Some councils are all over this but yours might need a nudge. In Scotland, Transport Scotland covers the other 25% of the cost for on-street public charge points.

Is an electric car
right for me?

Discover electric cars that are available through our partner CBVC today.

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Are electric cars still expensive?

Are electric cars still expensive?

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Are electric cars still expensive?

Can I afford an electric car?

Are electric cars still expensive? When electric cars first launched they were pricey. There were only a few on the market so those limited numbers and expensive batteries kept the cost up. But that’s all changing. Batteries are far cheaper and as more electric cars come on the market it’s driving the price down.

You’ve probably noticed more car manufacturers getting in on the electric car act. And along with early electric car pioneers like Tesla launching more affordable drives, it means more variety and the chance for you to find something that suits your budget.  

The tech is getting better all the time and prices are gradually dropping. But new electric cars aren’t quite as cheap to buy as their petrol or diesel equivalents.  

How much can I expect to pay for an electric car?

 If you’re after a new electric car, a supermini like a Fiat 500e Hatchback 42kWh starts at £31,195.

Or, if you need something a bit bigger, a Hyundai KONA Electric 48kWh is available from £34,995.

And if you think a Tesla Model 3 is more your style, these start at £39,990.

Prices supplied January 2024. You can compare the prices of new and second-hand electric cars on the Electric Vehicle Database. 

Electric car charging

Will I save cash in other ways?  

There’s more than just the price-tag to consider, though. 

  • You won’t pay any car tax on an electric car
  • Maintenance costs are lower 
  • Some car dealers offer cheaper servicing for electric cars
  • You’ll save money on fuel
  • You can easily save over £1,000 a year on running costs (and even more if you pay congestion charges in areas like Central London).  

If you don’t want to buy new, you could always look for a used electric car. You can pick up a second-hand 2011 Nissan LEAF for just over £6,000 on AutoTrader (May 2022).  

Is an electric car
right for me?

Discover electric cars that are available through our partner CBVC today.

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Are electric cars more expensive to insure?

Are electric cars more expensive to insure?

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Electric car insurance   

Will it cost more to insure an electric car?   

There’s no simple yes or no to this. Just like insurance for petrol or diesel cars, it depends on where you live, how old you are, your driving history and the car you’ve chosen.  

But right now, it does tend to cost slightly more to insure an electric car so get some quotes before you buy.

Why does it cost more?

Electric cars cost more because It’s partly to do with the tech in the car (which is also why they cost more to buy right now). The batteries in electric cars are expensive and cost a lot to fit if you need a new one. So if you have an accident and yours needs replacing, it can have a hefty price tag.  

Now we’re certain batteries last years and years, car makers are building them into the cars. The downside is if something goes wrong you could end up replacing the whole car, as you can’t just pop the battery out. And unfortunately, it doesn’t have to be a major accident for the battery to get damaged, sometimes even air bags going off can wreck it.  

Electric cars are also a bit more expensive to buy than petrol or diesel. This makes them pricier to replace. And that means a few more quid on your insurance premium.  

If you’ve tried out an electric car, you’ll know they can be pretty speedy and that sometimes catches people out. For that reason, until everyone gets used to driving electric and the way it delivers instant acceleration, you’ll see higher insurance quotes.  

On the plus side there are safety features in electric cars, like the tech in Teslas which reads the road and helps you avoid pedestrians and other obstacles.And all car makers, like Nissan and VW, are working on safety too, which in the longer term should bring insurance prices down. 

Will car insurance for electric get cheaper?  

As more and more electric cars come on the market it’ll drive the price of the cars and tech (like batteries) down. You should see the cost of repairs drop too. And that means insurance costs are likely to come down.  

Is an electric car
right for me?

Discover electric cars that are available through our partner CBVC today.

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Should you buy or lease an electric car?

Should you buy or lease an electric car?

It’s a big decision with lots to consider. Let us take you through some of the differences when you buy or lease an electric car…

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Are you ready to go electric?

Want to know if an electric car is the right choice for you?

Join in with our simple online quiz to find out more.

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To buy or not to buy?

With plenty of gleaming brand-new models in the showrooms, you might wonder why you or your business should lease an electric vehicle instead of buying. It’s a good question: there’s nothing quite like the warm glow that comes with ownership. Or is there?

One good reason to take an electric car lease, not buy, is the capital outlay. People often perceive buying and leasing a car is similar to buying and renting a house. But that’s not really true. Purchasing a house is usually (but not always) a sound investment: purchasing a car may not be. And electric cars usually cost more than their petrol or diesel counterparts. Their high-capacity batteries and the technology that translates all that power into motion doesn’t come cheap. Even a mid-range car such as the Hyundai Kona 64kWh will cost you in the region of £33k (Sept 2023).

New cars typically depreciate quickly

Also average rates of depreciation are around 15-35% in the first year and considerably more after that. The instant you drive a new car off the forecourt it loses a hefty chunk of its value. And that’s a lot of money to lose when you come to resell it.

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Electric car lease types

There are two main types of car lease – Personal Contract Hire (PCH) and Business Contract Hire (BCH). The first is where an individual enters into a lease agreement with a leasing company, such as CBVC – which works with ElectriX. The second is where a company enters into an agreement with a leasing company to provide its staff with cars. There’s also Personal Contract Purchase (PCP) that allows the individual to pay for a car over a fixed period of time, with the option of buying the car at the end of the term.

ElectriX is also offering salary sacrifice. This is where an employee has the monthly leasing fee deducted from their wages at source, from their gross salary. Even though the employee has to pay benefit-in-kind (BiK) tax, there are significant savings, as the employee’s overall tax bill and National Insurance payments will be lower. ElectriX now offers the most flexible salary sacrifice scheme on the market, with different levels of risk protection tailored to the employer’s needs.

Leasing a family-sized electric car like a MG4 Hatchback can cost from as little as £256.04 per month on PCH (as at February 2024). Or take a high-end electric car such as the Tesla Model Y – this can be leased from £425.80 per month (as at February 2024). And, after the contract period is up and no matter which model you’ve gone for, you hand it back with no cash payment at the end. You also have the option of getting another brand-new car of the same model, or an entirely different one, by which time technology will probably have moved on and the car may come with even more specs.

Nissan Ariya SUV in red

Other electric car lease benefits for businesses

Leasing electric cars and vans is a particularly attractive option for businesses. With BCH business owners can lease as many vehicles as they wish, with a range of benefits, including 50% VAT redemptions for cars and vans used for work and the employee’s own use, and 100% for commercial vehicles where the vehicle is used solely for work. There are also tax savings to be had on BiK tax.

Once all the necessary paperwork is completed, ElectriX and CBVC can get you behind the wheel of a brand-new car in as little as 30 days. That’s generally much quicker than buying one. If you want a factory order where you choose some of the specs like trim and interiors, it may take a little more time. Take a look at some of our stock offers here.

Leasing an electric car also means you’ll have more control over your finances, helping you to budget. You’ll have fixed monthly costs, with some contracts also covering maintenance. ElectriX can also sort out your insurance and home charging for you.

Find out more here

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right for me?

Discover electric cars that are available through our partner CBVC today.

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How much does installing an electric car charger cost?

How much does installing an electric car charger cost?

To really make the most of your electric car experience and get the best value and convenience, you need a home charger. But how do you get one? What’s the electric car charger installation cost? And what’s the cost of charging an electric car at home?

In this article we’ll answer all your questions and power up your understanding of EV home charging. 

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Charge up your knowledge

Before we get into the details of costs and how to get a home charger installed, here are a few facts to help you choose your charger.

Charger speed 

The overwhelming majority of UK homes today install the fast 7kW charger and have become the standard option as prices have reduced, and are replacing the slower 3.6kW charger. 7kW chargers are simple to install and have the benefit of being able to be used with a single-phase electricity connection, which is what most UK homes have. 

You may however see rapid 22kW installers advertised, providing around three times faster charging. However, at present these are incompatible with most UK homes since they require a three-phase power supply (found more commonly in commercial buildings).

The easiest way to find out about your home’s power connection is to look at your fuse board. If you have a single-phase connection, you’ll have one main fuse, while three-phase homes have three main fuses.

image of a women charging an electric car

Tethered or untethered?

What does tethered and untethered actually mean? In short, tethered comes with a cable and untethered without. 

Tethered (with cable)

  • Plug straight into the inbuilt charging cable
  • Cable wraps around charger for fast, convenient storage
  • No risk of losing or forgetting cable

Untethered (without cable)

  • Use your own connector cable
  • Choose the right cable length for maximum flexibility
  • Replace or upgrade your cable at any time

Smart charging

In 2021, the law changed and all private EV chargers needed to have smart charging functionality that enables scheduled charging and very often includes remote control via a smart device. Furthermore, other smart functions can include remote locking for when you are not at home, energy usage monitoring to provide real-time data and cost tracking to detail a summary of every charging session. 

Plug compatibility

Before you choose a charger, make sure it is compatible with your electric car, by checking the plug your charger comes with and matching it with the type of socket on your car. Thanks to standardisation, this is now quite straightforward, since the vast majority of cars have Type 2 sockets. 

Type 2

These sockets have been mandatory on all new electric vehicles in the EU since 2014. 

Type 1

These sockets are now only found on some older models of Nissan Leaf and Mitsubishi PHEV Outlander. 

type 1 (5-pins) and type 2 (7-pins) electric car charger sockets

How much does it cost to install an electric car charger?

The cost of installation will vary depending on a few factors, including the location of your home and the complexity of the installation. So, let’s look at those in more detail.

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Charger

There are lots of different chargers on the market, with different features and price-points. Which you choose will influence the cost. 

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Location

The location of your home will also affect the cost of installation. If your home is located in a difficult-to-access area, such as a narrow street or a gated community, the cost of installation could be higher.

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Difficulty

The complexity of the installation will also affect the cost. If you have a dedicated electricity supply for your home charging point, the installation will be simpler and less expensive. However, if you need to upgrade your electricity supply, the cost of installation will be higher.

Introducing the Indra Smart Pro

Super charge your electric driving with an Indra Smart PRO home charger. Full of the latest features, this innovative charger puts you in the driving seat with cheaper, faster and more advanced charging. 

Find out more
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How much do electric cars cost compared to others?

How much do electric cars cost compared to others?

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Are electric cars more expensive than petrol or diesel? 

First, let’s bust the myth that you need a big budget to go electric. For a mid-range new electric model, you might pay around £10k more in the showroom than a petrol or diesel. But you can seriously save on running costs.    

Electric cars are more efficient than petrol or diesel, so you offset that higher price tag quickly. And don’t forget there are second hand electric cars out there, plus great options for leasing where you pay a smaller monthly amount.

Comparing running costs 

When you’ve got your head round the up-front cost, start comparing running costs. Just think of a unit of electricity like a litre of fuel for your car. You’d check the price of a litre of fuel at the garage. And with electric cars you check the price of a unit of electricity. Units of electricity are kilowatt hours (kWh).  

The price of electricity varies just like petrol, depending on where you are (home, supermarket, motorway etc.) and what kind of charge point you’re using. Let’s compare the Volkswagen ID.3 and its equivalent, the bestselling family favourite, the Volkswagen Golf.  

Electric vehicles only parking spaces

Charging your electric car at home 

All electricity companies have tariffs, on an average tariff you’ll pay about 29.9p per unit of electricity, so 29.9p per kilowatt hour (kWh). It costs 6.9p to drive the VW ID.3 for a mile, compared to 16p (with fuel at £1.48 a litre) to drive a mile in the petrol Golf. If you drove 100 miles from Chester to York, it would cost you around £6.90 in a VW ID.3 and around £16 in a Golf. That’s a serious saving.  
 
But it gets better. Plenty of electricity companies charge less at night, some off-peak tariffs like Economy 7 go as low as 9.5p a unit.

Charging your electric car in a public place 

If you charge your electric car in a public place, the cost of a unit of electricity goes up to around 50 – 80p a kWh, pushing your cost of driving a mile to about 13-21p. It’s the most expensive way to charge but look out for discounts and loyalty schemes which make it a bit cheaper. And even at the highest price, it still costs less than petrol or diesel. 

Electric car charge point

No tax and much cheaper maintenance 

You don’t pay tax for your electric car. However, from the 1st of April 2025 car tax will apply to all electric cars. One advantage of electric cars is they don’t break down as much as they are simpler machines than petrol or diesel. Electric cars hardly ever break down. And they rarely need new brake pads because the way you brake causes much less wear.   

What about servicing, MOTs and tyres?

Servicing is usually cheaper for electric cars. But MOTs are similar and wear and tear on tyres is about the same. The environmental benefits of switching to electric are a whole other conversation but they’re worth factoring in when you’re weighing things up. 

What about hybrids? 

We’ve kept the comparison simple, but hybrids roughly compare to petrol and diesel cars for running costs and fuel economy. You’ll pay more for fuel than electric but there’s less wear and tear on your brake pads. 

Is an electric car
right for me?

Discover electric cars that are available through our partner CBVC today.

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