# EV vs Petrol Car: The 5-Year Cost Comparison in the UK 2026 > An electric vehicle now costs less to run per mile than a petrol car, but the higher purchase price means the crossover point — where total ownership cost favours the EV — depends heavily on mileage and charging access. *Section: Personal Finance — By Marcus Vale (Editor-in-Chief & Business & Markets Editor) — Published June 23, 2026 — 4 min read* Canonical URL: https://dailyjunction.org/business-finance/cost-of-ev-vs-petrol-uk-2026 Tags: electric vehicles, EV, petrol cars, running costs, car ownership, fuel costs, UK motoring, personal finance, cost comparison ## Key takeaways - An EV costs roughly 3–5p per mile in 'fuel' when charged at home on an off-peak tariff, compared with 13–16p per mile for a petrol car — a saving of roughly £800–£1,000 per year for a driver covering 8,000 miles. - The higher purchase price of an EV means the total-cost-of-ownership crossover typically occurs at 3–5 years for high-mileage drivers and 5–7 years for average-mileage drivers, according to AA and RAC analysis. - EVs lose their VED exemption from April 2025, adding £190 per year to the running costs — but they remain exempt from London's ULEZ and most Clean Air Zone charges. # EV vs Petrol Car: The 5-Year Cost Comparison in the UK 2026 The conversation about electric vehicles has shifted. It is no longer a debate about whether EVs are the future — the Zero Emission Vehicle mandate, which requires 28% of new car sales to be zero-emission in 2025 and rising annually thereafter, has settled that question. The practical question for anyone buying a car in 2026 is simpler: will an EV actually save me money over the time I plan to own it? The answer, as with most financial questions, is: it depends. On your annual mileage, on whether you can charge at home, on how long you keep the car, and on which specific models you are comparing. This guide sets out the numbers. --- ## The Per-Mile Fuel Comparison The single clearest advantage of an EV is the per-mile energy cost. The table below compares fuel costs for a typical family hatchback — a VW ID.3 (EV) versus a VW Golf 1.5 TSI (petrol) — over 8,000 miles per year. | Cost element | EV (VW ID.3) | Petrol (VW Golf) | |---|---|---| | Energy consumption | 4.0 miles per kWh | 45 miles per gallon | | Energy cost (home charging / petrol) | 8p per kWh (off-peak) | £1.45 per litre | | Cost per mile | 2.0p | 14.6p | | Annual fuel cost (8,000 miles) | £160 | £1,170 | | Annual fuel saving | — | **£1,010** | If the EV owner relies on public rapid charging at 65p per kWh, the per-mile cost rises to 16.3p — slightly more expensive than petrol. The financial case for an EV rests overwhelmingly on having access to home or workplace charging at domestic electricity rates. Without it, the fuel saving largely disappears. --- ## The 5-Year Total Cost of Ownership The table below compares the total cost of owning each car over five years, covering 40,000 miles (8,000 per year), assuming the car is purchased outright and sold at the end of the period. | Cost category | EV (VW ID.3) | Petrol (VW Golf) | |---|---|---| | Purchase price (new, mid-spec) | £36,000 | £28,000 | | Residual value after 5 years | £14,000 | £11,000 | | Depreciation | £22,000 | £17,000 | | Fuel / electricity (40,000 miles) | £800 | £5,850 | | Insurance (5 years) | £3,250 | £2,750 | | VED (road tax, 5 years) | £760 | £760 | | Servicing & maintenance (5 years) | £1,500 | £2,500 | | Home charger installation | £1,000 | £0 | | **Total 5-year cost** | **£29,310** | **£28,860** | The EV edges slightly ahead over five years at 8,000 miles per year, but the difference is small — roughly £450 in the petrol car's favour in this comparison. At 12,000 miles per year, the EV pulls ahead by approximately £1,200 over five years. At 15,000 miles, the EV advantage widens to roughly £2,500. --- ## The Depreciation Variable Depreciation is the largest cost in any new-car ownership calculation, and EV depreciation has been unusually steep over the past two years as a wave of ex-company-car EVs — coming off three-year lease deals signed during the 2022–23 EV boom — has flooded the used market. A three-year-old Tesla Model 3 that cost £45,000 new can now be bought for £18,000–£22,000, representing a depreciation hit of more than 50%. This steep depreciation is bad news for new-EV buyers but excellent news for used-EV buyers. A three-year-old EV bought for £16,000–£22,000 offers by far the most compelling total-cost-of-ownership case, because someone else has already absorbed the steepest part of the depreciation curve while the car still has years of cheap-per-mile running ahead of it. --- ## Insurance, Tax and Servicing EV insurance premiums remain higher than petrol equivalents — typically 10–20% more — reflecting the higher cost of repairing EV-specific components (particularly battery packs and the specialised bodywork and sensors on many EV models) and a shortage of qualified repairers. The ABI notes that the average EV repair claim is roughly 25% more expensive than a comparable petrol claim. Vehicle Excise Duty: from April 2025, EVs pay the same £190 annual VED rate as petrol and diesel cars. The expensive-car supplement (£410 per year for years 2–6 on cars with a list price over £40,000) also applies to EVs, which means many new EVs will attract a £600 annual tax bill despite producing zero tailpipe emissions. Servicing is cheaper for EVs — no oil changes, fewer moving parts, less brake wear (thanks to regenerative braking). The AA estimates EV servicing costs at roughly 30–40% less than a petrol equivalent over five years, saving £600–£1,000. --- ## The Bottom Line For a driver covering 8,000 miles per year with home charging, the five-year cost of an EV and a petrol car are now within a few hundred pounds of each other — the EV is no longer dramatically more expensive, but nor is it dramatically cheaper, unless you drive above-average mileage or buy used. For a driver covering 12,000+ miles per year with home charging, the EV is the clear financial winner. For a driver without home charging who relies on public networks, the petrol car still makes more financial sense in 2026 — though that equation will shift as public charging infrastructure expands and competition drives down per-kWh pricing. The used-EV market, in particular, now offers the best value proposition in British motoring: a three-year-old EV bought for under £20,000, charged at home on an off-peak tariff, delivers per-mile running costs that no petrol or diesel car can match, with depreciation that has already done its worst to the previous owner's wallet. ## Frequently asked questions ### Is it cheaper to run an electric car than a petrol car in 2026? Per mile, yes — by a wide margin. Home charging on an off-peak tariff (such as Octopus Go or OVO Charge Anytime) costs roughly 7–9p per kWh, which translates to 3–5p per mile for a typical EV. A petrol car averaging 45 mpg at £1.45 per litre costs roughly 14.6p per mile. Over 8,000 miles, the EV fuel saving is approximately £800–£950 per year. Public rapid charging is more expensive — 55–85p per kWh — and can reduce or eliminate the per-mile saving. ### Do electric cars still get free road tax? No. From 1 April 2025, electric vehicles registered after that date pay the standard VED rate of £190 per year from the second year onwards. EVs registered between 1 April 2017 and 31 March 2025 also move to the standard rate. Only EVs registered before April 2017 (very few exist) retain a zero-VED status. The expensive-car supplement (£410 per year for cars with a list price over £40,000) also now applies to EVs. ### How much does it cost to install a home EV charger? A 7 kW home wall-box charger typically costs £900–£1,200 fully installed, including the unit, labour and any necessary consumer-unit upgrades. The government's EV chargepoint grant (administered by OZEV) provides up to £350 towards the cost for homeowners with off-street parking. Renters and flat-owners can access a separate grant for landlords and building owners. ## Sources - [RAC: Electric Car Running Costs](https://www.rac.co.uk/drive/electric-cars/running-costs/) - [AA: EV vs Petrol Cost Comparison 2025](https://www.theaa.com/electric-vehicles/ev-running-costs) - [GOV.UK: Vehicle Tax Changes for Electric Vehicles](https://www.gov.uk/guidance/vehicle-tax-changes-for-electric-vehicles-from-2025) - [Zapmap: Public Charging Costs 2026](https://www.zap-map.com/charging-news/public-charging-costs/) --- Daily Junction — https://dailyjunction.org/business-finance/cost-of-ev-vs-petrol-uk-2026