Costs: EV vs. ICE
Which is cheaper?
What's included in the total costs?
The price difference between electric vehicles and cars with a combustion engine is getting smaller every year, and in many situations the electric vehicles are cheaper to drive. When comparing costs, it is important to look at the total cost of ownership. Some parts are more expensive for electric vehicles, e.g. tire, but is cheaper in terms of energy. However, there are many factors that influence the total cost.
DepreciationElectric vehicles are depreciated a little faster than fossil cars due to the high battery prices and technological development. This entails, among other things, that depreciation is higher compared to cars with combustion engines. In addition, as electric vehicles continue to develop rapidly and become more advanced, it can be a good idea to lease an electric vehicle, as you know what you have to pay each month. When the contract expires and you lease a new electric vehicle, you get a car with the latest technology.
Energy and fuel expensesIf you charge your vehicle at home, your electricity bill will increase, but how much depends on factors such as what time of day you charge the vehicle and where you live. If you have a home charging station, it is recommended to charge your car at night, as electricity prices are usually cheaper at that time of day. Charging stations in the infrastructure are usually more expensive than if you charge the vehicle at home. The price for charging your electric vehicle outside the infrastructure depends on the type of charger and provider available.
MaintenanceElectric vehicles have lower maintenance and repair costs than fossil cars. Electric vehicles have far fewer moving parts than combustion engine cars, which means that servicing costs for electric vehicles are much lower compared to combustion engine cars. Based on our TCO report, they are 11% lower. Despite that, they still require regular maintenance, which entails costs for e.g. tires and brakes, windshields, wiper blades, battery repair or replacement (rare) and general wear and tear.
TyresElectric vehicles are heavier than cars with a combustion engine. Therefore, it also requires that the covering must be able to bear the greater weight. There are therefore tyres that are made especially for electric vehicles, as they must have a particularly solid construction and tire composition. It can therefore wear more on the tires and thus have slightly higher costs for the electric vehicle's tyres.
Damage handlingYou cannot deny the fact that all cars are becoming more and more advanced in connection with the technological functions, sophisticated electronics etc. This requires many workshops to invest in new and more advanced equipment in order to rectify faults and repairs. Both electric and conventional fuel engine cars have advanced driver assistance systems (ADAS) and these can be expensive to repair or replace. This also applies to the batteries in the electric vehicles.
InsuranceIt costs more to insure an electric vehicle versus a car with a combustion engine. This is due, among other things, to that the electric vehicle weighs more and is more expensive to buy.
TaxesRegardless of whether you choose to drive an electric vehicle or a car with a combustion engine, taxes and duties are included as part of the total cost.
You can stay informed about the latest charges and taxes via Skat's website.
Conclusion
Are EVs cheaper than cars with a combustion engine?
When it comes to electric vehicles, fuel and maintenance costs are the primary factors that help lower the TCO (Total Cost of Ownership). According to LeasePlan's studies on total costs for electric vehicles and cars with a combustion engine, the electric vehicle is cheaper in total costs. You can download the full report below.