Electric Cars, And How You Can Start Saving Money With Them

Industry news

Electric Cars, And How You Can Start Saving Money With Them

26th July 2021

There is no doubt that electric cars are the future. They’re cheaper to run, kinder to the Earth and all-around a great innovation

As part of Boris’s Green Industrial Revolution, it is said that all new cars must be electric or hybrid by 2030, or they will not be permitted for sale.

It’s time we start preparing for the future today, and to do that, we need to know all the facts.

The costs of a car.

There are many things that you can forget about when buying a car. For example, how much the road tax will be, how much fuel will set you back, your MOT, insurance and all of the other bits and bobs that can rack up a pretty hefty bill.

We all know how expensive it can be to buy a car, especially a new one. However, it isn’t just the cost of purchasing a car. Running costs can add up over a car’s lifespan, which isn’t always given the thought it should be.

So how does this differ with electric cars?

First things first, EV’s can be expensive, with the average prices ranging from around £20,000 up to eye-watering heights of over £80,000 as seen with the Tesla Model X. So knowing that, surely they are expensive to keep running and healthy right?

The savings of electric cars

Well, yes and no. One of the many money-saving features of an EV is that you don’t have to pay road tax, as there are no emissions from an EV (Although this may be changing soon), right off the bat, that saves you a bit of money.

But road tax is probably the cheapest of the fees that come with owning a car. So let’s talk about where the real money comes in.

Insurance

Car insurance, especially for drivers who have just got their license or haven’t been driving for too long, can tally up a bill of thousands of pounds.

For those that aren’t new, the average insurance payment per year is around £485 (For ICE vehicles) according to moneyadviceservice.org.uk.This isn’t an insignificant amount, especially after you have just bought a car. However, in an article from yourmoney.com, they cite data from GoCompare, saying that on average, while comparing a Nissan Leaf (Electric) to a Ford Fiesta(ICE), the price difference was around £154 in favour of the Leaf.

This isn’t just on the one car either. Further data from MoneySupermarket, highlighted the same correlation between the Renault Zeo (Electric) and the Vauxhall Corsa(ICE). The costs on average were £451 for insurance on the Zeo, while a Vauxhall Corsa cost around £776, which is a relatively large increase from the electric car.

Many people have speculated that insurance may cast a large shadow on electric cars. For a while, this seemed true. However, with more people opting for EVs, the price has been falling year on year and hopefully won’t stop any time soon!

However, this isn’t the case with every EV as many are known to have massive insurance fees.

The luxury electric car market shows this with the Tesla Model 3’s insurance being on average around £1200, falling from £1500 the year before. Having a decrease of around about 20% based on those figures. Although the price is falling, it is still massively above the £485 average previously mentioned.

It isn’t just insurance and road tax you will save money on. Fuel prices seem to be rising daily.

Fuel cost comparison with electric cars and ICE’s

EV charging

jct600 compared the price of fueling three different Golf’s, one being electric.

On paper, 3.7p compared to 14p doesn’t seem too much. However, it is a difference of 26.43%. If you take the difference up to, let’s say, £1000, that means it would cost around £735. Which is a massive saving of £265, and the more you drive, the more you will notice your savings!

To put a real cherry on top, you can install your own charging point at home but wait for it… This could cost as little as £300 with a grant from the government. This is in line with their green plan to push out conventional combustion engine car sales by 2030!

So that’s tax, insurance and fuel, surely that’s all?

Nope! There are even more features that make EV’s cheaper to run!

MOTs for an electric car

When MOT time comes around, it can end up being much more expensive than you initially thought it would be. Your potential bill could have you pay for repairs on parts you haven’t even heard of, racking up a hefty fee.

However, you will immediately save money compared to petrol or diesel cars as you will not need an oil change!

To add to this, electric engines are less complex than ICE’s as they have fewer moving parts. This means they are much less likely to have issues arise out of the blue. However, should there be an issue, most potential problems have a decent chance of being covered by the manufacturer’s warranty!

Conclusion = electric cars are great

To sum up, the more people who switch to an EV, the more affordable they will become. We fully stand by the movement to environmentally-friendly electric vehicles by 2030. Hopefully, after this blog, we might have swayed you!

We have plenty more content on electric cars, so if you’re interested, check them out!

To look at how we can help visit our products page

For inquiries or more information email: assistance@unityautofinance.azurewebsites.net