PRESS RELEASE

Nissan Leaf, MG5, and Mini are best value electric cars

     

    • The LV= ‘Electric Car Cost Index’ explores purchase price, tax, insurance, fuel and maintenance costs for 13 pure electric cars vs their petrol/diesel equivalents to establish the total cost of ownership
    • Drivers who buy an electric car outright will save on average £3,862 over a seven year ownership period, while seven of the 13 cars analysed provide savings over a four year lease

       

    • Cost to “fuel” an electric car for 8,000 miles a year is 61% cheaper, with petrol and diesel drivers paying £732 a year more on fuel to do the same distance
    • Lower maintenance and insurance costs also drive down annual running costs for electric car owners, which are on average 47% cheaper than petrol and diesel cars

    The Nissan Leaf, MG5 Long Range Excite and the Mini Electric Level 1 are three of the best value electric cars for drivers considering going green, according to the latest ‘Electric Car Cost Index’ from LV= General Insurance (LV= GI), one of the UK’s largest insurers of electric cars.

     

    The analysis2, done in partnership with consultant battery electrochemist Dr. Euan McTurk of Plug Life Consulting, examined the purchase (outright ownership), financing (lease and PCP) and running costs (fuel/charging, maintenance, insurance, tax) for 13 popular electric car models and their petrol or diesel equivalents, to demonstrate the true cost of being an electric car driver for people considering making the switch.

     

    Three of the 13 electric cars  – Nissan Leaf, MG5 Long Range Excite and the Mini Electric Level 1 – work out cheaper whether bought outright, leased or via PCP. All 13 cars are cheaper than the equivalent petrol or diesel model based on buying the car upfront and keeping it for seven years, while seven of the 13 are cheaper across a four-year lease term and four are cheaper on a three-year PCP agreement.

     

    The savings on electric cars are heavily driven by lower average annual running costs - £1,147.21 compared to £2,201.58 for a petrol or diesel car.

     

    Vehicle comparisons

    Electric Car

    Petrol/Diesel car

    Total saving over 7 yr ownership (including residual value)

    Total saving over 4yr lease

    Total saving over 3yr PCP

    Annual running cost savings

    Monthly running cost savings

    Nissan LEAF 40 kWH N-Connecta

    Ford Focus 1.0 ecoboost 125 Zetec

    £3,210.63

    £2,080.92

    £308.23

    £945.65

    £78.80

    Tesla Model 3 Saloon Standard Plus 4dr Auto

    BMW 320i M Sport 4dr Auto (Pro Pack)

    £10,585.47

    £4,976.11

    -£3,128.57

    £1,703.27

    £141.94

    VW ID.3 Life Pro Performance 62kWh 5dr Auto

    VW Golf 8 Life 2.0 TDI 115PS 7-speed DSG 5dr

    £2,417.82

    -£3,306.96

    -£1,347.00

    £772.41

    £64.37

    Kia e-Niro 64kwh 4+5dr Auto

    Kia Niro 1.6GDi Hybrid 4-5dr DCT

    £1,718.96

    -£677.99

    -£2,937.41

    £852.15

    £71.01

    Volkswagen e-UP 32kWh 5dr Auto

    Volkswagen Up 65ps Up 5dr manual

    £2,620.42

    £1,918.33

    -£3,602.67

    £994.21

    £82.85

    MG ZS EV Trophy 51kWh

    MG ZS Exclusive 5dr 1.5 VTI-tech

    £2,137.65

    -£1,038.80

    -£6,022.73

    £1,109.84

    £92.49

    Peugeot E-2008 GT 50kWh 5dr Auto (vs Peugeot)

    Peugeot 2008 GT 1.2L PURETECH 103 S&S

    £1,282.84

    £3,070.05

    -£983.62

    £927.75

    £77.31

    Skoda Enyaq iV 80

    Skoda Kodiaq SE 1.5 TSI 150 PS DSG

    £5,812.63

    -£3,747.38

    -£2,331.52

    £1,434.80

    £119.57

    Hyundai Ioniq 5 Ultimate 58kWh 170PS

    Hyundai Tucson Ultimate 1.6 150PS Petrol 2WD Manual

    £2,459.25

    -£2,263.84

    -£5,039.25

    £1,007.46

    £83.96

    MG5 Long Range Excite

    Skoda Octavia Estate SE 1.5 TSI 150 PS 6G Manual

    £5,473.40

    £2,445.27

    £2,269.85

    £1,016.79

    £84.73

    Fiat 500e Red

    Fiat 500 Red

    £586.16

    £5,527.26

    -£1,618.95

    £734.49

    £61.21

    Mini Electric Level1

    Mini 3dr Hatch Cooper S Classic

    £6,225.48

    £2,641.45

    £308.97

    £1,240.95

    £103.41

    Vauxhall Corsa-e SE PREMIUM (ELECTRIC 11KW)

    Vauxhall Corsa 5dr SRI EDITION 1.2 (130PS)

    £5,675.97

    -£1,562.42

    £2,118.74

    £967.08

    £80.59

     

    Purchasing an electric car

    The purchase price for electric cars is still higher than equivalent petrol or diesel cars. For balance the study explored a range of models across the purchase spectrum, from entry level electric vehicles (EVs) like the Volkswagen e-UP (£22,585), Fiat 500e (£25,495) and Vauxhall Corsa-e (£25,805), all the way through to high-end cars such as the Tesla Model 3 (£42,990), Hyundai Ioniq 5 (£42,295) and the Skoda Enyaq iV 80 (£40,130)

     

    Of the cars analysed the average cost of an EV was £32,683, just under £7,000 more than the average petrol or diesel car at £25,685. However in some cases the gap is closing – the Vauxhall Corsa-e is only £2,175 more expensive than its petrol equivalent, and the difference between the Mini Electric Level1 and Mini Hatch Cooper S Classic is now less than £5,000.

     

    Thanks to the lower running costs, drivers who outright buy any of the 13 EVs analysed by LV= will recoup some of their initial outlay over the average ownership period of seven years, ranging from £586 on the Fiat 500e Red to over £10,500 for the Tesla Model 3. The average saving over seven years is £3,862.05, with ten of the 13 cars saving over £2,000 during the ownership period, and the saving figure also factors in residual value – the price that the vehicle would sell for after seven years (assumes annual depreciation of 9.5%).

     

    For many drivers that understandably are unable to buy the car outright, leasing is a much better option than taking out a PCP contract. Apart from the VW ID3, every car looked at is significantly cheaper to lease over a four year period than via a PCP on a three year contract, according to insights provided by vehicle leasing company CBVC. The monthly and annual prices on the table below also factor in an upfront deposit, which on average is £3,189.72.

     

    Only a handful of the EVs have cheaper annual lease costs than their petrol or diesel equivalents, including the Peugeot 2008 (£4,546 vs £4,562) and the Fiat 500 (£3,037 vs £3,833). However, taking into account the cheaper running costs, seven of the 13 cars analysed provide savings over a four year lease, ranging from £1,918 for the Volkswagen e-UP to £5,527 for the Fiat 500e. The average saving across all 13 cars on a four year lease is £774. Only four of the 13 cars recoup money over a three year PCP, with the MG5 Long Range Excite recouping the most at £2,270.

     

    Running costs

    The savings EV drivers can make are driven by substantially cheaper running costs, which work out £1,054 cheaper on average annually vs driving a petrol or diesel car.  This figure rises to £1,435 for the Skoda Enyaq iV vs its petrol equivalent, and to £1,703 on the Tesla Model 3 vs BMW 320i. Average annual maintenance for an EV, which includes a service and replacement tyres and brakes, is almost £200 cheaper (£304 vs £498), mainly because they have very few moving components, making them considerably less likely to break down as they age and much cheaper to maintain.

     

    The biggest annual saving comes from charging the vehicle vs having to pay for petrol or diesel. On average EV drivers will pay just £467.40 to charge their car each year, based on driving 8,000 miles, while petrol and diesel drivers pay £1,199.40 to do the same mileage – a difference of £732.  If drivers have an electricity tariff with a reduced off-peak overnight rate, then the annual cost of charging an EV is reduced to just £180.59.

     

    The assumption is that electric cars are more expensive to insure but that’s not the case anymore. Insurance premiums are on average cheaper for the EVs analysed vs the petrol or diesel models - £297 vs £310. Insurance is cheaper on seven of the 13 vehicle pairings, with some cars including the ID.3 and Vauxhall Corsa-e substantially cheaper than their ICE equivalents, at 22 and 33% respectively

     

    The other significant saving for electric car drivers comes from not having to pay tax on the vehicle, which for petrol and drivers is on average £193.68 annually. Over a seven-year ownership this equates to £1,355.76.

     

    Gill Nowell, Head of EV at LV= General Insurance, commented: “Despite the upfront sticker price of an electric car being higher than the equivalent petrol or diesel car, it pays to look at all the costs involved. Even with escalating fuel and energy costs, if people can afford to make the switch to an electric car, either new or second hand, then charging up with energy at home rather than filling up at a petrol station is far cheaper – and better for the environment and our local air quality.”

    Consultant Battery Electrochemist Dr Euan McTurk of Plug Life Consulting, commented: ”With petrol and diesel prices going through the roof, this is a timely reminder that electric cars can save money as well as emissions. Higher mileage drivers will save even more money by going electric, so if you do more than 8,000 miles per year, you’ll recoup your outlay much faster, and your savings will be even higher.  Plus, because electric vehicles are so mechanically reliable, as they get older, they’ll spend much more time on the road and much less time in the garage than a petrol or diesel car of the same age, saving you considerable time and money – this bodes well for people looking to buy a second hand EV.”

    In April 2019, LV= GI launched the UK’s first car insurance product developed solely for electric cars.. The product provides tailored cover to meet the specific needs of electric car owners and includes cover for home charging cables and wall boxes, the supply of electric or hybrid courtesy cars and access to a network of specialist electric car repairers across the country.

     

    For more information on electric cars, from the basics to charging and costs, visit https://www.lvelectrix.co.uk/

     

     

Press Contacts List

Simon Ansell
Media Relations Manager, General Insurance
07826 953024

NOTES TO EDITORS:

All outright purchase, lease and PCP costs are correct as of February 2022. Purchase price of vehicles includes VAT

All running costs are averaged across a seven-year period (the assumed length of ownership) and are correct as of March 2022.

Analysis based on following assumptions:

  • Annual mileage: 8,000
  • Average outright ownership period: 7 years
  • Average lease term: 4 years
  • Average PCP term: 3 years
  • Average standard home charging cost: £0.20 per kWh / off peak home charging: £0.05 per kWh (assumes 90% of charging done at home, none on off-peak charging; savings will be even higher if off-peak electricity is used)
  • Average public rapid charging cost: £0.40 per kWh
  • Average petrol/diesel price: 163.6p a litre
  • Home chargepoint installation cost - £549 (included in every EV total cost quoted in this index)
  • Plug-in grant at £1.5k and capped at cars worth £32k is factored in

Charging costs based on 90% of charging done at home and 10% done using public rapid charging

 

Model

Outright cost

Annual lease cost

Monthly lease cost

Annual PCP cost

Monthly PCP cost

Annual running cost

Monthly running cost

Electric car: Nissan LEAF 40 kWH N-Connecta

£28,995

£4,082.96

£340.25

£5,325.33

£443.78

£1,108.41

 

£92.37

Petrol/diesel car: Ford Focus 1.0 ecoboost 125 Zetec

£22,215

£3,817.80

£318.15

£4,662.01

£388.50

£2,054.06

 

£171.17

Electric car: Tesla Model 3 Saloon Standard Plus 4dr Auto

£42,990

£7,245.56

£603.80

£9,814.33

£817.86

£1,254.15

 

£104.51

Petrol/diesel car: BMW 320i M Sport 4dr Auto (Pro Pack)

£40,330

£7,130.34

£594.20

£7,378.57

£614.88

£2,957.42

 

£246.45

Electric car: VW ID.3 Life Pro Performance 62kWh 5dr Auto

£33,520

£5,534.20

£461.18

£5,390,23

£449.19

£1,109.98

 

£92.50

Petrol/diesel car: VW Golf 8 Life 2.0 TDI 115PS 7-speed DSG 5dr

£27,575

£4,071.76

£339.31

£6,128.57

£510.71

£1,882.39

 

£156.87

Electric car: Kia e-Niro 64kwh 4+5dr Auto

£39,445

£5,213.18

£434.43

£8,148.13

£679.01

£1,100.88

 

£91.74

Petrol/diesel car: Kia Niro 1.6GDi Hybrid 4-5dr DCT

£31,000

£4,349.24

£362.44

£6,501.37

£541.78

£1,953.03

 

£162.75

Electric car: Volkswagen e-UP 32kWh 5dr Auto

£22,585

£3,106.04

£258.84

£5,098.28

£424.86

£1,011.78

 

£84.32

Petrol/diesel car: Volkswagen Up 65ps Up 5dr manual

£13,955

£2,753.10

£229.43

£3,078.98

£256.58

£2,006.00

 

£167.17

Electric car: MG ZS EV Trophy 51kWh

£29,995

£4,144.56

£345.38

£6,331.93

£527.66

£1,094.59

 

£91.22

Petrol/diesel car: MG ZS Exclusive 5dr 1.5 VTI-tech

£18,795

£2,913.96

£242.83

£3,372.13

£281.01

£2,204.43

 

£183.70

Electric car: Peugeot E-2008 GT 50kWh 5dr Auto (vs Peugeot)

£37,180

£4,545.66

£378.81

£6,058.43

£504.87

£1,196.60

 

£99.72

Petrol/diesel car: Peugeot 2008 GT 1.2L PURETECH 103 S&S

£26,815

£4,562.32

£380.19

£4,974.71

£414.56

£2,124.35

 

£177.03

Electric car: Skoda Enyaq iV 80

£40,130

£6,939.52

£578.29

£7,974.40

£664.53

£1,083.26

 

£90.27

Petrol/diesel car: Skoda Kodiaq SE 1.5 TSI 150 PS DSG

£31,715

£4,731.44

£394.29

£5,834.13

£486.18

£2,518.06

 

£209.84

Electric car: Hyundai Ioniq 5 Ultimate 58kWh 170PS

£42,295

£6,947.22

£578.94

£8,757.72

£729.81

£1,465.33

 

£122.11

Petrol/diesel car: Hyundai Tucson Ultimate 1.6 150PS Petrol 2WD Manual

£33,160

£5,522.44

£460.20

£6,210.96

£517.58

£2,472.79

 

£206.07

Electric car: MG5 Long Range Excite

£27,945

£4,077.64

£339.80

£5,392.93

£449.41

£1,036.16

 

£86.35

Petrol/diesel car: Skoda Octavia Estate SE 1.5 TSI 150 PS 6G Manual

£24,675

£3,806.18

£317.18

£5,291.02

£440.92

£2,052.95

 

£171.08

Electric car: Fiat 500e Red

£25,495

£3,036.88

£253.07

£4,386.62

£365.55

£1,227.16

 

£102.26

Petrol/diesel car: Fiat 500 Red

£16,435

£3,833.06

£319.42

£3,282.83

£273.57

£1,961.66

 

£163.47

Electric car: Mini Electric Level1

£28,500

£4,389.98

£365.83

£5,324.17

£443.68

£1,028.08

 

£85.67

Petrol/diesel car: Mini 3dr Hatch Cooper S Classic

£23,605

£4,017.72

£334.81

£4,416.72

£368.06

£2,269.02

 

£189.09

Electric car: Vauxhall Corsa-e SE PREMIUM (ELECTRIC 11KW)

£25,805

£4,892.44

£407.70

£6,406.77

£533.90

£1,197.31

 

£99.78

Petrol/diesel car: Corsa 5dr SRI EDITION 1.2 (130PS)

£23,630

£3,705.94

£308.83

£4,853.02

£404.42

£2,164.39

 

£180.37

Electric car average

£32,779

£4,935.06

£411.26

£6,509.38

£542.45

£1,147.21

 

£95.60

Petrol/diesel car average

£25,685

£4,247.33

£353.94

£5,050.64

£420.89

£2,201.58

 

£183.47