New research claims that the right place for electric vehicle ownership has been achieved, with the average zero-emission model already cheaper to own than a petrol car.
In 2020, the average lifetime cost – including purchase price – for an electric car is £ 52,133, while an equivalent petrol model is £ 53,625.
On average, an electric car costs the owner over the course of his life £ 3,752 a year, compared to £ 3,858 for a gasoline car, making an annual saving of £ 107, according to Direct Line.
Sweet spot for electric vehicles already achieved: Direct Line calculations claim that the electric car crossover point is cheaper than an equivalent on gasoline, and motorists save an average of nearly £ 1,500 over the average period of car ownership
According to the latest data from the Department of Transport, the UK has already surpassed more than 100,000 pure electric cars on the road, with 99,374 zero-emission vehicles registered in 2019.
In 2020, numbers from the Society of Motor Manufacturer and Trader show 30,997 battery-powered electric cars were registered by the end of June, nearly 160 percent higher than sales in the first six months of last year.
In June, pure electric cars accounted for 6 percent of all motorcycle sales, as the market continues to shift in favor of alternative fuel vehicles – although figures have skewed in recent months due to registrations of new engines during the corona virus Lockdown.
Direct Line’s claim that electric cars are now cheaper to own is despite the average zero-emission model costing around £ 5,000 – or 22 percent – more than a comparable petrol engine model.
That’s even taking into account the £ 3,000 grant that is eligible for less than £ 50,000 zero-emission cars through the government’s Plug-in Car Grant.
The insurer has calculated that the annual running costs average £ 1,742 or £ 33.50 per week for an electric car, which is 21 percent cheaper than the running costs of a petrol car at £ 2,205 per year or £ 42.40 per week.
Annual tax and maintenance costs (including MOT and service) for electric vehicles are 49 percent lower than for gasoline models, while refueling is 58 percent cheaper.
However, insurance costs are on average 25 percent higher for electric vehicles.
Direct Line says this is due to “the current production costs and complexity involved in calibrating computers used in these cars.”
The figures have been adjusted based on the expected life of a vehicle, which SMMT estimates to be approximately 13.9 years.
That means any new car bought today will likely need to be replaced in late 2034, just before the government ban on gasoline, diesel and hybrid cars goes into effect.
The study also found that electric vehicles retain their value better than gasoline equivalents. Analysis of AutoTrader used car data shows that a year-old electric vehicle loses only 12 percent of its value, compared to a 24 percent depreciation on gasoline models.
Neil Ingram, chief engine product at Direct Line, said the British could “ already save money by switching from a traditional gasoline or diesel car to an equivalent electric model, ” instead of waiting for the 2035 ban to be introduced.
“We expect prices to fall in the future, thanks in part to the government’s commitment to making greener vehicles more accessible, but also to technological advances that make buying, refueling, maintaining and insuring an electric car easier, cheaper and getting better for the environment, ‘he added.
In the past two weeks alone, Nissan has unveiled its new £ 40,000 Ariya family car, BMW has launched its first electric SUV called the iX3, and the zero-emission Polestar 2 has arrived on British shores.
In addition to cheaper running costs and the plug-in car subsidy, electric car owners can currently also take advantage of the Homecharge electric vehicle scheme, which adds £ 350 to the cost of installing a wallbox charger with their properties.
An additional £ 300 savings can be achieved by having the installation carried out by an engineer approved by Energy Saving Trust.
Battery Electric Vehicle (BEV) registrations in the first six months of 2020 are nearly 160% higher than in the same period the year before, these official records from the SMMT show
On average, an electric car costs the owner over the course of his life £ 3,752 a year, compared to £ 3,858 for a gasoline car, making an annual savings of £ 107, the study said.
It has also been reported that ministers had considered introducing a scrapping scheme to boost electric car sales and help the auto industry recover from the economic hammer blow of the Covid-19 pandemic.
It was said that the Prime Minister came up with the idea of a £ 6,000 incentive for those who swapped their old gasoline and diesel cars for a brand new zero emission model, although the scheme has since been called into question.
You can get a new electric car in Germany for FREE …
Motorists in Germany are currently benefiting from a new incentive that offers a brand new electric car for two years.
The German government is currently giving buyers € 6,000 off the price of a new electric car – an incentive that was considered in the UK as part of a scrapping scheme to spur the release of zero-emission cars after the Covid-19 pandemic.
Unlike the £ 3,000 Plug-in Car Grant in the UK, which subsidizes the vehicle’s list price, drivers in Germany can spread their larger subsidy over monthly lease payments.
Dealer network Autohaus Koenig – with approximately 50 branches across Germany – currently offers a brand new Renault Zoe electric car for a two-year rental period for a total amount of € 6,000 over the contract period.
The government grant can be used to cover the cost of all monthly payments over the 24-month contract.
Autohaus Koenig has reportedly been inundated with questions since the offer’s launch and received more than 150 requests within the first day of the offer’s launch, according to BloombergNEF.
The findings come from a study by Direct Line that revealed that nearly two thirds (61 percent) of motorists would switch to an electric car if the technology and green car market continues to improve.
The main problems with the current selection of electric vehicles are the limited charging network (35 percent), the high initial costs (34 percent) and the limited battery range (16 percent).
However, the study also found that some people are still reluctant to make the switch, with more than a quarter of motorists (27 percent, or 11.4 million British adults) saying they would only buy a petrol or diesel car if they were given the choice.
Anca Young, insight and intelligence manager at Thatcham Research, said demand for electric cars is being helped by government incentives, especially for fleet buyers who benefit from 0 percent commercial vehicle electric vehicle tax, and that higher electric vehicle insurance costs will begin to reject decline.
“While the cost of lithium-ion batteries used in electric vehicles is falling, they remain more expensive than conventional internal combustion engine (ICE) powertrains and are therefore generally more expensive to purchase,” explains Young.
“There is a move towards more cooperation between car manufacturers to reduce the costs of developing and manufacturing electric vehicles.
The general construction of electric vehicles differs from traditional cars and typically materials, parts and repairs are more complex and expensive. This makes the overall insurable risk less competitive than many traditional combustion engine options. ‘
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