Why buying an electric car pays for itself in just 2.5 years

While the financial and environmental upfront costs of an electric car may seem higher than a petrol or diesel car, the paybacks are quick—and significant.

For many people, leasing is an affordable way to drive a new vehicle. And when it comes to running costs, EV’s are a lot cheaper to power than their fossil-fueled equivalents. This is especially true when you charge your EV at home using specialist charging offerings such as OVO’s Charge Anytime at around 2p per mile.

But many people believe the purchase price of EVs to be a lot higher than those of petrol or diesel vehicles. OVO’s recently commissioned research, for example, shows that 85% of the public are in favour of owning an electric car in the next five years, but almost two thirds (62%) say high costs remain the key barrier to switching.

Although there is a growing range of more affordable EVs, starting at around £15,000, the average electric car costs around £30,000 to buy, which is around 3% higher than a similar petrol or diesel vehicle, which comes in around £27,000.

But here’s the key difference: electric vehicles (EVs) have running costs that are 90% cheaper than their petrol or diesel counterparts, with the average EVs* becoming cheaper to own and run in just 2.5-3 years.

The benefits don’t stop at your wallet, though. EVs are often criticised for having a higher environmental impact during the manufacturing process than that of its diesel or petrol counterparts. But the overall environmental payoff is surprisingly quick – from as little as one year of driving (depending on the energy mix used to charge them).

The reason? The energy used to power EVs comes increasingly from cleaner sources. EVs run on electricity, and with the UK grid already sourcing about 45% of its power from renewable energy, the emissions generated by driving an EV are much lower than those from a petrol or diesel car.

After that first year, the initial carbon footprint of manufacturing an EV is offset, meaning every mile driven reduces your overall impact on the planet even further.

Thinking about switching to an EV? Check out OVO Beyond (https://company.ovo.com/ovo-launches-uks-first-energy-savings-account-to-bank-ev-miles-and-unlock-discounts/)to learn how you can bank EV miles for free.

*The payback period of 2.5 years is based on a £30,000 purchase price for an EV.