Cost of running an electric car up £357annually

Cost of running an electric car up £357 in the last year alone

The latest research by tax specialists, RIFT Tax Refunds, has revealed that drivers of electric cars have seen a 28% increase of £257 in annual running costs over the last year, while the cost of owning a diesel car is up 2.2%. However, the running costs of a petrol car are down -1.7% on an annual basis.

RIFT Tax Refunds analysed the initial cost of purchasing a car, as well as the annual running costs and how they have changed over the last year.

The research shows that the average cost of purchasing a car has actually dropped. A petrol car is the most affordable at an average of £16,108, down -2.9% annually. The initial cost of a diesel car has fallen by 7% in the last year to an average of £16,414. At £24,906, an electric car is the most expensive although this cost has also fallen by -4.7% annually.

Motorists have faced increased costs when it comes to car insurance, tax and maintenance though. The cost of insuring our cars has climbed 19% in the last year, adding £77 a year for petrol owners, £65 for diesel and £104 for electric car owners.

The cost of road tax is up 9.1% versus last year, an increase of £15, although electric cars are exempt. Maintenance costs have increased by 8%, adding £21 per year to the cost of running a vehicle, while the cost of an MOT has remained unchanged at an average of £55.

However it’s fuel costs that have made the biggest difference to the cost of owning a car . Following a shortage that spurred high prices and queues at the pumps, the cost of filling a petrol car has actually fallen by -10.1% in the last year, saving petrol car owners £155 per year.

The cost of diesel has also fallen, down by 2.2% saving motorists £65 per year, but it’s bad news for electric car owners. The cost of running an electric car has climbed by a huge 58.1% in the last year, an annual increase of £231.

As a result, electric car owners have seen a total increase of 28% or £357 when it comes to the annual cost of running and maintaining their motor. The overall cost of a diesel car is up 2.2% or £49 per year, while the cost of running a petrol car has fallen by -1.7% annually, a drop of £41 per year.

There is some good news for electric car owners though. Despite this steep increase, they still remain the most affordable vehicle to keep on the roads, with total annual running costs averaging £1,631, versus £2,307 for a diesel car and £2,388 for a petrol car.

Electric car owners in London have even more to smile about, with electric vehicles being exempt from both the expanding ULEZ and the more central Congestion Charge zone, saving them £1,950 and £2,340 a year respectively.

Bradley Post, MD of RIFT Tax Refunds, commented:

“Many households are still battling the higher cost of living and an annual increase in the cost of insuring, taxing and maintaining our cars will do little to help that.

The silver lining is that the cost of both diesel and petrol has reduced, however, those doing their bit for their environment with an electric car have seen a substantial uplift when it comes to powering it.

Despite this, electric cars remain the most affordable overall when it comes to running costs and, for those in London, they provide the additional benefit of dodging the ever expanding ULEZ and are exempt from paying the Congestion Charge.

It’s also important to remember that if you use your personal car for work, you can claim back the cost of fuel or electricity via a tax refund and so it always pays to keep hold of your receipts as it’s money you are rightfully entitled to and that can go towards the increased cost of car ownership.”