The environmental and social case for EVs is well known, but many businesses also need a compelling financial case – and we’re pleased to say that this is becoming increasingly clear.
2019 Car Cost Index
Our 2019 Car Cost Index shows that EVs are already fully cost-competitive with traditional internal combustion engines in Norway and the Netherlands; with the UK (as well as other countries, such as Denmark) just a little way behind. The UK is also the second cheapest country in Europe for owning an electric vehicle (after Greece).
What makes these figures even more exciting is that we haven’t included employee costs (such as benefit-in-kind tax) in the calculations. When you add them in, it can potentially make electric vehicles significantly more affordable in some countries.
Comparing fuel types
Our analysis also has some interesting findings on how the costs of traditional and electric vehicles vary. As you might expect, depreciation is the largest factor for both, but it makes up more than half of the cost for an electric vehicle, but only a little more than a third for traditional engines. Electric vehicles save from lower fuel costs and taxes, as well as cheaper maintenance across Europe. If they start to hold their value better, it could see a big shift in the cost-competitiveness figures.
Tex Gunning, CEO of LeasePlan, welcomes these findings, but also sounds a cautionary note on the future of electric vehicles in Europe. He says,
"Our Car Cost Index shows electric vehicles are becoming more affordable than ever, especially in Northern Europe, where government incentives are having a positive impact.
While it’s good to see the cost gap closing in other countries, there is still a lot of work that needs to be done to ensure everyone can drive electric. We are also seeing a worrying tendency from policymakers to remove EV incentives, which will significantly slow down the fight against climate change and poor air quality in our towns and cities."
Total monthly cost of ownership
Total monthly cost of ownership, by country and fuel type (sorted by EV price):
Find out more
Read the full Car Cost Index in our our report here.
If you’re interested in seeing how LeasePlan can help keep you make the transition from traditional fuels to electric please speak to your Account manager about our Sustainability Review.
Alternatively get in touch with a member of our expert team using our online form or call 01753 802448 – we’re always happy to hear from you.