Electric Car Costs: How Much Are They?

Leasing EVs is an attractive option for many British motorists. Instead of purchasing a car outright, leasing allows you to spread out the cost of ownership over a longer period.

Most leases run for between three to five years though this can vary depending on the lender and your personal preferences. You’ll commit to fixed monthly payments and hand over maintenance responsibilities to the lender.

Typical electric car costs vary depending on the make, model and duration of your lease. In general, car leasing is a cost-effective option and can be tailored to fit different budgets. Find out more about the different types of EVs available from Leasing Options in our electric car guide.

When it comes to the electric cars vs petrol debate, it’s important to consider not only the upfront purchase price but the ongoing cost of ownership. While the RRP of EVs is often higher than their petrol counterparts, motorists enjoy significant savings when it comes to running costs.

Instead of an internal combustion engine (ICE) that runs on petrol or diesel, EVs are powered by an electric motor. This eliminates trips to the forecourt and means you’ll never have to worry about petrol prices. Instead, simply plug the EV into an electric outlet to recharge the battery.

EV technology is continually evolving, and models are becoming increasingly affordable. For example, popular cars like the Nissan Leaf now start at just £28,495, a price that makes EV ownership a reality for many Brits.

Electric car running costs are generally cheaper than filling up a tank with petrol. The latest data from the RAC reveals petrol prices increased by almost 7p per litre in August, increasing the total cost of filling a tank by nearly £4. Diesel increased even more by 8p, with the total cost of filling a tank now £4.41 higher.

Currently, the average cost of petrol in the UK is around 156.39p per litre. The average car has a fuel tank capacity of between 50 - 60 litres, which means motorists are hit with a bill of around £90 every time they fill the tank.

In comparison, the average cost of electricity in the UK is 34p per kWh, even lower if you use off-peak electricity rates. For a model like the Kia EV6 powered by a 77.4kWh battery, the cost of recharging using standard rates is around £26. Compared to petrol, the cost of electricity is significantly lower per mile. This translates to enormous cost savings over time.

Find out more about how to top up EV batteries in our electric car charging guide.

Maintenance is another factor to consider when purchasing a car. Compared to petrol or diesel vehicles, maintenance-related electric car costs are generally lower.

This is because electric engines have fewer moving parts, which means they’re less likely to wear out or require maintenance.

Electric car costs in the UK vary significantly, with the cheapest options starting at less than £8,000 and the most expensive topping six figures.

What's the cheapest electric car?

For budget-conscious motorists, these electric cars offer irresistible value for money:

Citroen Ami: Technically an electric quadricycle, the Citroen Ami is powered by a 5.5kWh battery and offers a top speed of 28mph. Prices start at £7,695 or you can lease for less than £120 per month, making it one of the most affordable EVs in the UK.

Renault Zoe: Impressive range and an affordable price point of under £30,000 make the Renault Zoe a great budget-friendly EV. Lease prices start as low as £403 per month.

Nissan Leaf: Purchase the best-selling Nissan Leaf for £28,495 or lease it for just £250 per month.

Smart EQ ForTwo: The zippy Smart EQ ForTwo is ideal for city driving, with Leasing Options starting at just £333 per month.

Volkswagen e-Up!: Practical and stylish, the Volkswagen e-Up! starts at around £24,000 or you can slash the initial cost of ownership with a lease starting at just £215 per month.

Mid-range electric cars

These mid-range EVs strike a balance between style, technology and affordability:

Kia e-Niro: A spacious interior and impressive electric range make the Kia e-Niro a favourite with British motorists. Base purchase prices start at £38,795 though you can lease for as low as £305 per month.

Hyundai Kona Electric: Another fan favourite, the Hyundai Kona Electric starts at £30,450. Leasing gets you into the driver’s seat faster with deals from just £287 per month.

Tesla Model 3: Enjoy cutting-edge technology and instant street cred with the Tesla Model 3. Showroom prices start at £42,000 for the electric saloon or you can lease for £475 per month.

Audi Q4 e-Tron: Priced at £51,325, this compact SUV combines luxury and affordability. Leases start at £595 per month.

Premium electric car prices

Get behind the wheel of a premium electric car and enjoy next-generation technology, plush interiors and unsurpassed style. Here are some of our favourites:

Tesla Model Y: Lease this mid-size crossover SUV for less than £500 per month.

Jaguar I-PACE: This model perfects the art of style and performance. Lease prices for the all-electric SUV start at around £650 per month.

Porsche Taycan: The Porsche Taycan proves electric engines don’t compromise on performance. Lease this sleek, sports-inspired car for just over £1,000 per month.

Audi e-Tron GT: With leases starting at under £835, securing the keys to a luxury Audi e-Tron GT is more affordable than you may think.

Mercedes-Benz EQS Saloon: Enjoy more than 450 miles of range in the high-performance Mercedes-Benz EQS Saloon. Sidestep the six-figure purchase RRP with leasing options starting at under £1,400 per month.

Are electric cars more expensive?

High R&D costs, specialised battery components and lower production volumes all contribute to the higher cost of EVs. However, technology is continually advancing, and the price gap between EVs and ICE vehicles is narrowing. When you factor in long-term savings like low operating costs and minimal maintenance, EVs offer exceptional value for money.

Leasing isn’t just an option for petrol and diesel cars. Auto finance is also a great way to get behind the wheel of bestselling EVs like the Nissan Leaf, Audi Q4 e-tron and BMW i4. Here’s why leasing an electric car is a smart alternative to purchasing a vehicle outright:

1. Lower monthly costs: Instead of parting with a large sum of cash, leasing allows you to split the purchase price into affordable monthly payments 
2. Easier to budget: Leasing can be a great way to finetune your budget. Payments are taken monthly and remain consistent and predictable
3. Lower the cost of ownership: Most lease agreements include maintenance and warranty coverage. This significantly reduces the cost of ownership and eliminates other electric car running costs
4. Access the latest technology: EV technology is continually evolving and leasing allows you to enjoy the latest advances, without committing to long-term ownership. Whether it’s longer range, cutting-edge driver assist features or faster charge times, leasing allows you to continually upgrade your EV
5. Environmental benefits: Auto finance makes EV ownership a reality for motorists who want to reduce their carbon footprint but may not be able to afford the RRP outright
6. No depreciation: Unlike purchasing a new car outright, you don’t need to worry about depreciation when leasing an EV

Leasing Options can help you secure the keys to your dream electric car lease. Get in touch with a customer service agent today to find out more about auto finance and start your journey towards a greener, smarter and more cost-effective driving experience.