The Real Cost of Going Electric: A 5-Year Ownership Analysis

In today's automotive landscape, electric vehicles (EVs) have moved beyond niche status to become serious contenders for your next car purchase. At West Motors in Uxbridge, we're seeing increasing interest from customers weighing the long-term financial implications of switching from traditional petrol or diesel vehicles to electric alternatives.

But how do the numbers truly stack up over a typical five-year ownership period? Let's break down the real costs of going electric compared to conventional vehicles.

Initial Purchase Price: The Upfront Investment

The most noticeable difference when shopping for an EV is the higher sticker price. Despite government incentives and declining manufacturing costs, electric vehicles typically command a premium of £5,000-£15,000 over comparable petrol models.

For example:

• Mid-range family hatchback (petrol): £22,000-£28,000
• Equivalent electric model: £30,000-£40,000

However, this initial price gap has been steadily narrowing. As our inventory at West Motors demonstrates, the growing used EV market now offers more affordable entry points, with three to four-year-old electric models often priced competitively against new petrol vehicles.

Charging vs. Fuelling: The Running Cost Advantage

Where electric vehicles begin to demonstrate clear financial benefits is in day-to-day running costs:

Petrol Vehicle (Annual Costs)

• Average annual mileage: 12,000 miles
• Fuel efficiency: 40 MPG
• Fuel requirement: 300 gallons (approximately 1,364 litres)
• Average fuel cost (as of early 2025): £1.45/litre
• Annual fuel expenditure: £1,978

Electric Vehicle (Annual Costs)

Average annual mileage: 12,000 miles
Efficiency: 3.5 miles/kWh
Electricity requirement: 3,429 kWh
Home charging cost (average): 28p/kWh
Annual electricity expenditure: £960

This represents an annual saving of over £1,000 – or more than £5,000 across five years of ownership. These savings increase further for those able to utilise cheaper overnight electricity tariffs or workplace charging facilities.

Maintenance: Fewer Moving Parts, Lower Costs

Electric vehicles have significantly fewer moving parts than internal combustion engines. There are no oil changes, fewer brake replacements (thanks to regenerative braking), and generally less maintenance required:

5-Year Maintenance Costs

• Petrol vehicle: £3,000-£4,000 (including regular servicing, brake replacements, timing belts, etc.)
• Electric vehicle: £1,000-£1,500 (primarily tyre replacements and cabin filter changes)

This represents another substantial saving of approximately £2,000-£2,500 over five years of ownership.

Road Tax and Congestion Charges: Policy Advantages

While vehicle taxation policies may evolve, currently electric vehicles enjoy significant advantages:

• Road tax (VED): £0 for zero-emission vehicles vs. £155+ annually for petrol/diesel
• London Congestion Charge: Full exemption for EVs (saving up to £3,950 annually for daily commuters)
• Ultra Low Emission Zone (ULEZ) charges: Full exemption (saving up to £4,500 annually for affected drivers)

For Uxbridge residents who regularly travel into central London, these exemptions alone could justify the switch to electric. 

Insurance: A Mixed Picture

Insurance costs for electric vehicles have traditionally been higher due to:

• Higher vehicle values
• Specialised repair requirements
• Limited repair networks

However, this gap is narrowing as insurers gain more data on EV reliability and repair costs. Current premiums typically run 10-15% higher for electric vehicles, though this varies significantly based on model, driver history, and insurer.

Based on average UK annual premiums:

• Petrol vehicle: £500-£600 annually
• Electric vehicle: £600-£700 annually

This represents a modest additional cost of approximately £500 over five years.

Depreciation: The Changing Landscape

Historically, electric vehicles suffered from faster depreciation than petrol counterparts due to concerns about battery longevity and rapidly evolving technology. However, this trend has reversed for many models:

5-Year Depreciation (Percentage of Original Value Retained)

• Average petrol vehicle: 35-40%
• Average electric vehicle: 40-45%

Modern EVs with ranges exceeding 250 miles are holding their value better, particularly as charging infrastructure improves and consumer confidence grows. For a £35,000 electric vehicle, this improved depreciation profile could represent a £1,750-£3,500 advantage over five years compared to a conventional vehicle.

At West Motors, our experience selling pre-owned EVs confirms this shifting trend, with demand for quality used electric models consistently strong.

Battery Replacement: The Outlier Expense

The most significant potential cost for EV owners is battery replacement. However, this is rarely a consideration within a five-year ownership period:

• Most manufacturers offer 8-10 year battery warranties
• Real-world data shows modern EV batteries typically retain 85-90% capacity after 100,000 miles
• Replacement costs are falling as technology matures (currently £3,000-£8,000 depending on model)

For the typical five-year ownership period we're analysing, battery replacement costs are not a relevant factor.

The 5-Year Total Cost Picture

Adding these factors together provides a comprehensive five-year ownership cost comparison:

Petrol Vehicle (5-Year Costs)

• Depreciation (60-65% of £25,000): £15,000-£16,250
• Fuel: £9,890
• Road tax: £775+
• Maintenance: £3,000-£4,000
• Insurance: £2,500-£3,000
• Total: £31,165-£33,915

Electric Vehicle (5-Year Costs)

• Depreciation (55-60% of £35,000): £19,250-£21,000
• Electricity: £4,800
• Road tax: £0
• Maintenance: £1,000-£1,500
• Insurance: £3,000-£3,500
• Total: £28,050-£30,800

The results show that despite higher upfront costs, the average electric vehicle works out approximately £3,000 cheaper over a five-year ownership period.

Conclusion: Beyond the Financial Equation

While the numbers now tend to favour electric vehicles even on a pure cost basis, the decision extends beyond finances. At West Motors in Uxbridge, we help customers consider additional factors like:

• Environmental impact
• Driving experience (instant torque, quieter operation)
• Charging convenience relative to specific living situations
• Future-proofing against potential restrictions on conventional vehicles

For most drivers covering average mileage, the financial case for electric vehicles is increasingly compelling. The higher purchase price is effectively offset by lower running costs over a typical ownership period.

If you're considering making the switch, visit our Uxbridge showroom where our team can provide personalised advice based on your specific driving needs and financial considerations. With our extensive selection of both conventional and electric vehicles, West Motors is ideally positioned to help you make an informed decision on your next vehicle purchase.