Thinking about switching from a petrol car to an electric one in 2025, but not sure if it will actually save money?

With new UK tax rules, shifting fuel prices and a wave of salary-sacrifice EV deals, the maths can feel confusing. Yet, once everything is counted, the answer is clearer than it looks.

Recent research from transport and energy analysts consistently finds that, once running costs are included, modern EVs often undercut equivalent petrol cars over a typical seven-year ownership period, even when the petrol model is cheaper to buy upfront.

Purchase Price

Brand-new EVs still tend to cost more to buy than petrol models, mainly because of the battery. UK market data for 2025 suggests that the average new electric car sits in the high-£40,000 bracket, while many comparable petrol cars remain several thousand pounds cheaper.

However, that headline gap shrinks quickly once discounts, dealer offers and salary-sacrifice schemes are added. Paying from pre-tax income can cut the effective monthly cost dramatically, especially for higher-rate taxpayers. Many drivers now compare EVs and petrol cars using online cost calculators that factor in tax, fuel and employer contributions.

Energy Use

Electric cars are far more efficient at turning energy into motion than internal-combustion engines. Conventional petrol cars operate at roughly 20–35% efficiency, while EVs typically convert around 60–80% of electrical energy into movement.

For UK drivers, that difference shows up clearly in cost per mile. Charging at home on a standard tariff often works out at about 7p per mile, compared with roughly 19–21p per mile for petrol or diesel. Off-peak or EV-specific electricity tariffs can reduce the EV cost even further, while petrol prices remain vulnerable to global market swings.

Running Costs

Independent studies from consumer organisations and motoring experts regularly find that EV drivers spend around 40–60% less on energy each year than drivers of petrol cars, depending on mileage and local electricity prices. Charging mostly at home, especially overnight on cheaper time-of-use tariffs, is key to unlocking those savings.

Public rapid chargers are usually more expensive per kWh, so drivers who rely heavily on them will see smaller savings. Still, for typical UK mileages, home-biased charging generally leaves an EV noticeably cheaper to run than a similar petrol model.

Maintenance Gaps

EVs have fewer moving parts than petrol cars. There is no oil to change, no exhaust system, no clutch, no timing belt and no complex fuel system. As a result, electric cars are typically 25–30% cheaper to service on average over the first years of ownership, with some studies suggesting even larger long-term differences.

Many EVs use regenerative braking, reducing wear on brake pads and discs. Tyres can wear faster because EVs are heavier, but routine tyre care usually keeps costs manageable. Most new EVs come with battery warranties of around eight years or 100,000 miles, guaranteeing a minimum level of capacity, and real-world studies show gradual rather than rapid degradation.

Tax & Perks

From April 2025, EVs in the UK lost their full exemption from Vehicle Excise Duty. New electric cars now pay a low first-year rate and then move to the standard flat rate, with an extra supplement for cars priced over £40,000. Petrol cars, especially higher-emission models, often face much higher first-year charges.

Company-car drivers see even bigger differences. Benefit-in-Kind rates for electric cars remain very low compared with petrol and diesel models, making EVs far more tax-efficient through salary-sacrifice schemes.

Real Savings

Total-cost-of-ownership studies compare popular petrol models with their closest electric equivalents over a seven-year period. In most vehicle classes, including family cars and many SUVs, the electric version comes out cheaper overall once fuel, maintenance, tax, and resale value are considered.

For a typical UK driver covering moderate mileage and charging mainly at home, annual savings of several hundred pounds on energy alone are common, with further reductions from servicing and tax. These savings often offset the higher purchase price within a few years, especially when combined with employer schemes or competitive finance.

Conclusion

For most UK drivers in 2025, an electric car is likely to be cheaper to run than a comparable petrol model once energy, servicing, and tax are included. Upfront prices still favour petrol in many cases, but long-term numbers increasingly tilt toward EVs—especially for those who charge at home, drive steady annual mileage, and can access salary-sacrifice or company-car schemes.

Looking at your own driving, charging options, and tax position, does an EV now work out cheaper over the next seven years than a petrol car—and what extra information would help you feel confident about that decision?