New figures from leasing firm Octopus Electric Vehicles show that the average electric car lease now costs, on average, £40 less than the equivalent petrol alternative.
That’s a major milestone in a world where EVs have historically been more expensive.
With any new technology, prices are high at launch and those who make the switch pay the ‘early adopter tax’ for the privilege of being the first to experience its benefits.
This new price parity between petrol and electric cars means that phase is officially over and with pricing being equal between electric and petrol cars, it’s now up to the consumer to make the choice based on which powertrain works best for their purposes.
According to Octopus Electric Vehicles, the median EV lease price now sits at £369 per month whereas the median lease price for an equivalent petrol car comes in at £409. That could contribute to a saving of over £1,600 over the course of a lease. And that’s without considering the reduced running costs over an internal combustion vehicle. Especially considering current fuel prices.
Perhaps the best example of falling EV prices is the Dacia Spring. The cheap and cheerful tiny EV can now be had for as little as £199 per month. Compare that to Dacia’s entry-level petrol car, the Sandero at £225 per month and drivers could save £1,248 per month based on a 48 month term.
Savings aren’t just limited to the very bottom of the market though, as the Vauxhall Frontera EV works out £1,152 cheaper than the Frontera Hybrid. And the Citroen e-C3 could save you £720 when compared to the petrol-powered C3.
This all has to be happening for a reason though, right? Well, part of what makes new technologies cheaper as they develop is streamlined supply chains and more efficient production techniques. EVs are no different. Batteries have become cheaper thanks to improved technology, and as more carmakers have entered the EV market, competition between them has driven prices down too.
Not to mention, more affordable entry-level models such as the Renault Twingo and Kia EV2 are making EVs more accessible than ever before.
The story of EV ownership is much sweeter than the outright cost of purchase too. Running costs of electric cars are still much cheaper than those of an internal combustion car. Simpler mechanicals and a reduced number of moving parts means that maintenance costs are generally lower. At-home charging also makes the cost of running an EV much cheaper for those who can charge at home overnight.
With the UK government’s electric car grant helping take the edge of a significant chunk of new models too, EV ownership has never been more affordable and with price parity with electric cars now the norm, this marks a major turning point for the automotive industry as a whole. If you’ve been on the fence about EV ownership, is now the time to pull the trigger?
