“The wholesale price of electricity has been coming down steadily over the past few months so EV drivers are seeing the benefits in their pockets.” Stock image
Our motoring editor answers your questions on the total cost of ownership for electric vehicles
How do I calculate the total cost of ownership?
Despite falling prices of both new and used electric cars, price remains one of the major barriers to buying. Even when you factor in government support in the form of VRT relief and grants, the purchase price can still be higher than comparable petrol or diesel cars.
But the price is only one variable so to properly compare the cost of an electric car with a petrol and diesel car you need to work out the financial cost of owning an EV or the total cost of ownership.
The total cost of ownership (TCO) therefore is the purchase price of a car plus the running costs of charging, motor tax, insurance and maintenance.
Assessing the total cost of ownership means you can evaluate the lifetime cost savings of an electric car and take into account the main differences between EVs and internal combustion engine (ICE) vehicles.
Are electric cars cheaper to fuel than a petrol or diesel car?
Charging in the comfort of your own home is not only the most convenient way to charge but also the cheapest. According to the AA Ireland February fuel price survey, EV owners will pay on average €900.43 a year, compared to the December average of €967, to cover the national average of 17,000km a year.
This figure of €900 remains elevated far above the prices before Russia invaded Ukraine. However, the trend looks to continue downwards as the wholesale price of electricity has been coming down steadily over the past few months so EV drivers are seeing the benefits in their pockets.
For context, AA Ireland has calculated that a similarly sized diesel vehicle will cost approximately €2,047 to cover that same distance of 17,000km. But remember you need to shop around to get the cheapest rates possible on home electricity.
Will my car insurance be higher?
Insurance is often related to the purchase price of the car and therefore can be higher for electric cars. Some insurance companies offer specific discounts to EV drivers so, as always, shop around.
Top tip: Replacing an electric car battery is very rare and if anything does go wrong it is likely you will only need to replace modules within the battery pack and not the whole pack
Got a question? Email sundaymotors@independent.ie
