Electric vs Petrol Cars – True Cost of Ownership Compared

Q: Are EVs cheaper to run than petrol?

Yes in most cases, particularly with home charging and regular weekly mileage. Rapid public charging reduces the advantage.

Q: Is an EV always the best choice?

Not always. If you have no reliable charging or very low mileage, a petrol car may still be more practical.

Q: What about company car tax?

EVs typically attract much lower Benefit-in-Kind (BIK) tax than petrol cars, making them cost-effective via salary sacrifice.

Updated October 2025 | Reading time: 8 minutes

Are electric cars really cheaper than petrol in the UK? The answer depends on mileage, charging access and funding method. Below, we break down the key cost components so you can make a confident decision — and show how leasing (especially via salary sacrifice) changes the maths.

Cost Components That Matter

Energy/Fuel: home charging vs public rates vs petrol prices
Maintenance & Consumables: EVs have fewer moving parts
Tax & Incentives: BIK for company cars, VED rules, local benefits
Depreciation & Residuals: reflected in lease pricing
Insurance: varies by model and driver profile

At-a-Glance Comparison

Category	Electric (EV)	Petrol (ICE)
Energy / Fuel	Cheaper per mile (home charging). Public rapid costs vary.	Higher per mile; sensitive to pump prices.
Maintenance	Lower (fewer moving parts; no oil changes)	Higher (fluids, belts, more wear items)
Tax (Company Car)	Very low BIK on EVs — strong savings via salary sacrifice	Higher BIK
Road Tax (VED)	Subject to current government rules; historically favourable for EVs	Standard VED applies
Depreciation	Reflected in competitive lease rates on popular EVs	Reflected in lease rates; varies by model

New to EVs? See our primer: Electric Cars Explained

When EVs Usually Win

You can charge at home (especially off-peak/overnight)
You drive regular weekly mileage (commuting, school runs)
You can access salary sacrifice or you’re a company car driver
You prefer fixed-cost motoring with maintenance included

When Petrol Can Still Make Sense

No reliable access to home or workplace charging
Very low annual mileage (minimal savings vs petrol)
Frequent long trips where you prefer instant refuelling

Leasing Changes the Equation

Leasing bakes depreciation into fixed monthly rentals, making cross-fuel comparisons simpler. Popular EVs with strong residuals often deliver sharper lease pricing — especially with manufacturer support. Add a maintenance plan and you’ll know your motoring costs in advance.

Ready to compare real prices? Try these:

Next Steps

Still deciding between petrol and electric? Our team will run a personalised total-cost comparison based on your mileage, commute and charging access.

Speak to a Leasing Expert

Frequently Asked Questions

Are EVs cheaper to run than petrol?

Typically yes — especially with home charging and regular mileage. Public rapid charging narrows the gap.

Is an EV always the best choice?

No. If you can’t charge reliably or drive very little, a petrol may still suit you.

What about company car tax?

EVs have significantly lower BIK than petrol equivalents, which is why salary sacrifice is so popular.