Electric cars (EVs) are here to stay. With massive developments in battery technology, significant industry investment, and increasing awareness of the environmental benefits and savings to be made, it makes sense that one in five new car purchases are EVs. Buying an EV
Often, the upfront costs of an EV put potential buyers off. But the rewards that follow champion anything you have to pay at the dealership.
Here we’ve rounded up 5 significant savings you can make by buying an EV:
Cheaper running costs
If you’ve watched the news lately or gone to fill up the tank at the fuel station, you know all too well how alarming the expense of petrol (average £1.66p/litre) and diesel (average £1.79p/litre) has become almost overnight. Compared to how much it costs to fully charge your EV battery, the savings are substantial.
According to government data, the typical annual costs for a fully electric model averaging 7,400 miles per year (the average amongst British drivers), charging at home will cost about £3.75 per 100 miles. While the make and model of your car will impact the overall cost, the fact still remains: EV running costs are far less than a traditional combustion engine car.
Even before the massive hike in fuel prices (March 2022), most drivers could expect to pay over £1,000 per year in fuel. In contrast, EV motorists clock up £300 or less charging up overnight.
Overnight charging will save you £££s
Plugging in your EV overnight is the cheapest way to “refuel” your car as electricity prices are at their lowest during off-peak times. Plus, you can avoid queuing at the fuel station indefinitely and hop in your car first thing in the morning to start your day as you mean to go on.
Most EVs can be fully charged using a standard 7kW home charging point within five to ten hours. Ideally, you will need a garage or an off-road parking spot as you will need easy access to the main’s electricity and be able to connect your vehicle via a charging cable.
To help with costs, you can apply for a £350 government grant to instal a home charging unit at your home. Check out the website for more details to find out if you are eligible.
With the popularity of EVs sweeping the nation and the imminent 2030 ban of new petrol and diesel sales, many employers are installing charging points at their businesses for employee use, free of charge in most cases!
EVs aren’t as expensive to buy as you might think- Buying an EV
Here in the UK, we all know how expensive the upfront costs of a car can be, which is why car finance is the most popular way to purchase a new (and even used) vehicle.
Most lenders will front between £5,000 to £25,000 worth of loans to cover the upfront costs of your chosen vehicle, followed by low monthly payments over one to five years.
With different types of finance available to suit everyone’s needs, such as hire purchase, personal contract purchase, contract hire or leasing, and personal loans – the best finance for you is as flexible as you want it to be (within reason!)
But what if you have a poor credit history or have recently been rejected by a lender? While there is no quick fix to turning your credit score around, there are a range of lenders out there who specialise in bad credit car finance.
They will help you find the best deal that works with your individual circumstances and help you get accepted for an application regardless of a default, IVA, CCJ, bankruptcy, or a series of missed payments on your file that most lenders would reject an instant.
Combined with the government’s Plug-in Grant of up to £1,500, buying an EV isn’t as expensive as you might think. With prices starting from around £14k to £40K+, the EV market offers a wide choice of different makes and models, with new releases coming from the biggest brands every week. So keep your eyes peeled to see what exciting launches are coming soon.
Tax benefits
Alongside the government-funded Plug-in Grant, there are a handful of tax breaks available to EV owners that can further help to keep costs down:
Road tax
Currently, all pure electric vehicles are entirely exempt from road tax. While plug-in hybrid (PHEV) and hybrid vehicle (HEV) motorists may still have to take the hit, road tax payments are less than combustion vehicles and are based on the amount of carbon dioxide emissions your car produces.
Mileage allowance
Anyone who uses their EV for work may be able to claim the mileage back via the HM Revenue, and Customs Approved Mileage Allowance Payments scheme (AMAP). While this scheme applies to electric, petrol or diesel vehicles, you should apply to get some money back in your pocket.
HMRC will pay back 45p for the miles you drive for work (maximum 10,000 miles per year) and 10p per mile above 10,000 miles that year.
You will find all the details on the gov.uk website or alternatively ask your employer for more information on the scheme.
Low emission zones
London’s pioneering Ultra Low Emission Zone (ULEZ) was first launched in April 2019 to improve air quality across the congestion-charge area of Greater London. Now the zone is 18 times its original size, and anyone driving in the area has to adhere to the strict emissions policy in effect or pay a £12.50 charge to travel within the city.
Currently, Euro 5 petrol and Euro 6 diesel vehicles are exempt from the charge, but with the PM’s push towards net-zero emissions by 2050, this is set to change in the coming years.
Pure electric vehicles are entirely exempt from the charge as they produce zero tailpipe emissions.
After the success of ULEZ, it was only time before other cities launched their own version of the scheme, known as Clean Air Zones (CAZ). These can currently be found in Bristol, Birmingham and Portsmouth, with more zones on their way in the near future. pexels
Electric cars are inevitable. With their growing popularity and environmental benefits, it’s only a matter of time before they become the norm. Are you ready to make the switch and save yourself some cash in the long run?
