Cost & savings
EV vs petrol: total cost of ownership in the UK, explained
Beyond fuel — the honest total cost of owning an EV vs petrol in the UK, including depreciation, road tax, servicing, insurance, and how to compare like for like.
Key takeaways
- Total cost of ownership (TCO) — not just fuel — is what really matters.
- Depreciation is usually the biggest cost of any car, and EV residuals have been volatile.
- EVs typically win on fuel and servicing; petrol can win on purchase price and depreciation certainty.
- How you finance the car (buy, lease, salary sacrifice) can change the answer completely.
Comparing an EV to a petrol car on fuel cost alone is misleading. The honest comparison is total cost of ownership (TCO) — everything you pay to buy, run, and eventually sell the car over the time you keep it.
The five costs that make up TCO
- Depreciation — how much value the car loses. Usually the single biggest cost.
- Fuel / charging — where EVs often win big (with home charging).
- Road tax (VED) — EVs now pay this too, since April 2025.
- Servicing & maintenance — typically cheaper for EVs.
- Insurance — sometimes a little higher for EVs.
Depreciation: the cost people forget
For most cars, depreciation dwarfs fuel. EV residual values have been volatile — fast-falling new prices and improving tech have hit used values hard in recent years, though the market is stabilising. This matters:
- If you buy a new EV outright, you carry that depreciation risk.
- If you lease or use salary sacrifice, the provider carries it — which is partly why those routes can look attractive.
This is why the buying route is central — see Buy, lease, or PCP? and salary sacrifice.
Where EVs win and where petrol wins
EVs typically win on: fuel cost (with home charging), servicing, and the driving experience. Petrol can win on: lower purchase price, more predictable depreciation, and cheaper "fuelling" if you'd depend on public rapid charging.
A fair like-for-like comparison
To compare honestly:
- Use the same ownership period and same annual mileage for both.
- Use a realistic charging mix, not best-case home-only.
- Include all five cost lines, not just fuel.
Our running cost calculator handles the fuel-vs-charging part with your own numbers; layer depreciation and the other lines on top for a full TCO view.
The bottom line
For a home-charging, higher-mileage driver keeping the car several years, an EV often wins on TCO. For a low-mileage driver, or someone relying on public charging, or worried about depreciation on an outright purchase, petrol — or leasing an EV — may make more sense.
Want a quick personalised steer? Take the free quiz.
Frequently asked questions
What is total cost of ownership for a car?
It's the sum of everything you pay over the time you own a car: depreciation, fuel or charging, road tax, servicing and maintenance, and insurance. It's a fairer comparison than fuel cost alone.
Do EVs hold their value in the UK?
EV residual values have been volatile, with steep falls in recent years as new prices dropped and technology improved. The market is stabilising, but depreciation is a real risk for outright buyers — which is why leasing and salary sacrifice can appeal.
Is an EV cheaper than petrol overall?
Often, for home-charging higher-mileage drivers keeping the car for several years. For low-mileage or public-charging-dependent drivers, the totals can be much closer or favour petrol.