The real question: total cost of ownership
The sticker price of an EV is typically £5,000–15,000 higher than an equivalent petrol car. But fuel savings, lower maintenance costs, and tax incentives can make an EV significantly cheaper to own over 3–5 years.
Fuel costs: UK
Petrol at 140–155p/litre for 10,000 miles/year: approximately £1,338/year.
Electric equivalent at 24p/kWh: approximately £686/year. Annual fuel saving: £652. Over 5 years: £3,260.
Fuel costs: US
Petrol at $3.40/gallon for 12,000 miles/year: approximately $1,360/year.
Electric at 13 cents/kWh: approximately $446/year. Annual saving: $914.
Maintenance cost differences
- Petrol car: £700–900/year (UK) or $1,100–1,500/year (US)
- Electric car: £350–500/year (UK) or $600–900/year (US)
US Federal tax credit (2026)
Up to $7,500 for qualifying new EVs. Income limits: $150,000 (single) or $300,000 (married). Used EV credit: up to $4,000 for qualifying vehicles under $25,000.
Break-even calculation
US with $7,500 credit: $8,000 price premium − $7,500 credit = $500 ÷ ($914 fuel + $600 maintenance) = 0.33 years break-even.
UK without grant: £12,000 premium ÷ £1,052 annual savings = 11.4 years break-even.