Recent significant rises in energy prices have reminded us how crucial it is to choose wisely when investing in a new home or a new vehicle. As far as cars are concerned, the most commonly asked question is, of course, about the cost of fuel, which determines how long it takes to recoup the cost of buying a new vehicle.
Let’s take the example of a small saloon car that has both petrol and electric versions:
- Electric engine consumption: 15 kwh/100km
- Petrol engine consumption: 5.5 litres/100km
If we assume an average of 25,000km per year, the petrol engine version would consume around €2,324 of fuel per year or €194 per month.
Using the same annual average, the cost of the electricity required would depend on where and when you recharge your vehicle. If you have a recharging point at home and are lucky enough to have a tariff of €0.15/kwh, you’d pay €562.50 per year or €47 per month. If you pay a higher tariff of €0.25/kwh, then it would cost €937.50 per year or €78 per month.
Thus, even taking into account the recent price rises for electricity, it remains cheaper to run an electric vehicle.
Which leads us to the higher purchase price of electric vehicles compared to petrol vehicles. The small saloon car we used as an example would have a catalogue price of €21,715 for the petrol version, compared to €35,815 for the electric version, an extra €14,100, which you could expect to recoup in eight years or in just over ten years, depending on the price you pay for your electricity and presuming that the price of petrol remains stable. However, you will also have the priceless satisfaction of knowing that you have travelled everywhere with zero emissions into the environment.
Note that this calculation has not taken account of any solar panels you may have on your roof, which would further reduce the cost of your electricity and thus allow you to recoup the cost of your new electric car even more quickly.
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