Total cost of ownership of Electric cars
Given that EV’s have a higher sticker price, total cost of ownership is a larger consideration for EV purchasers. Why? It’s the only means of fairly comparing costs against petrol models.Understanding an EV’s total cost of ownership – Bristol Street Motors
The Total cost of ownership of Electric cars is the way businesses look at their fleets, but it’s also a valuable guide for individuals.
Parity already passed
The sweet spot for electric vehicle ownership has been achieved, with the average zero-emission model already cheaper to own than a petrol car, new research claims.
In 2020, the average lifetime running costs – including purchase price – for an electric car is £52,133, while an equivalent petrol model is £53,625.
On average, an electric vehicle would cost the owner £3,752 a year over the course of its life, compared to £3,858 for a petrol car, resulting in an annual saving of £107, according to Direct Line.This is money – July 2020
EV Purchase prices to decline
According to Bloomberg as the cost of Batteries decreases the purchase price of Electric cars will decrease. Although it’s not only the batteries. This aligns with ‘Wright’s law’ which says as cumulative production increases so costs reduce.
Total cost of ownership (TCO) measures the true cost of a vehicle, including all associated expenses like acquisition and maintenance.Calculating the Total Cost of Ownership for Your Fleet – Fleetio
Although electric cars tend to be slightly more costly to buy than their conventional counterparts, they’re cheaper to run over the long term. Like petrol or diesel cars, or hybrids for that matter, electric cars need tax, insurance, servicing and repairs but the low emissions and relative mechanical simplicity of electric drivetrains help contribute to overall running costs that compare very favourably to other types of vehicle.Electric car running costs: tax, insurance, servicing and repairs explained – Auto Express – July 2020
Servicing will become cheaper than for Petrol and Diesel
Unlike internal combustion engine vehicles, electric cars are more reliable with the fact that they have fewer moving parts. … No oil to change, no gaskets to replace, no valves to clog up, electric cars do not have internal combustion engines, so these costs disappear.Are electric cars cheaper to maintain? – Kia
Electric cars do not rely exclusively on brakes using friction to slow the car, but the slowing is supplemented by Regenerative braking. Consequently the brakes should last longer.