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.  

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.