Comparing costs: EV vs ICE

Electric cars seem to depreciate a bit more than internal combustion engine (ICE) vehicles, because of the fast technology advancements. With leasing an electric vehicle, the amount you pay is based on the expected rate of depreciation. In the case of electric cars, as well as enjoying lower monthly payments, EV leasing is also a safe way to protect yourself against new technology in the field - passing the associated risk - batteries or used value - to the operational leasing company. EVs are almost certain to be more advanced at the end of a two, three or four-year lease. At the end of your contract, you simply hand the car back and take out a new lease on a brand new EV which has the latest tech.

Charging your car at home will also cause your electricity bill to rise, but how much will depend on factors like when you charge and where you live. Electricity costs can vary significantly by region. Keep in mind that charging your car overnight, can save you 30 percent on that charge. Public charging stations tend to be more expensive than charging at home. The cost of charging your electric car at a public charge point depends on the charge point network and the location of charge points. Many local authorities offer a pay per session approach to on-street chargers. Public charge point costs also vary depending on the power rating.

Electric powertrains have lower maintenance and repair costs than internal combustion engine (ICE) powertrains for all vehicle sizes, relative to vehicle price. Electric cars have far fewer moving parts than internal combustion engines (ICE), meaning that electric car service costs are much lower when compared to ICE vehicles. Despite that, they do still require some regular maintenance that incurs cost, such as: tyres and brakes, windscreens, wiper blades and washer fluid, battery repair or replacement (rare!), general wear and tear.

All vehicles are getting more complex, including ICE vehicles, in terms of high-tech features and far more sophisticated electronics that are expensive to replace. Repair facilities have to make investments in new equipment and training to work on EVs. While ICE vehicles also have more Advanced Driver Assistance Systems (ADAS), EVs are really packed with these features and they are expensive to replace. Battery packs make EVs heavier than similar-sized ICE vehicles. It also means that EVs make greater use of expensive, lightweight, high-strength materials to try and offset the battery weight. These materials are expensive to replace.

Drivers must note that since EVs run on batteries, the tyres need to carry the weight of the batteries as well. Therefore, they should have a solid construction and strong tyre compound to withhold such weight. EV tyres must have a stronger sidewall and robust compound (Nylon or heavier) to handle the weight of the battery and the car components. EV tyres are also subject to more abrupt speed changes due to the higher torques of electric motors.

Generally, electric cars cost around 12% more to insure than ICE vehicles. Because electric vehicles are pricier to both buy and repair, insurance providers charge more for coverage. That said, the savings you earn on gas and tax incentives might more than make up for your extra cost. Still, in the future, insurers will tend to reward electric vehicle drivers for the change in driving profiles, but above all for the price parity expected in the next 2-3 years.

Taxation of e-mobility varies significantly from country to country, reflecting the diversity of government approaches to encouraging and promoting the adoption of electric vehicles for both businesses and privates. Learn more about the taxation and tax benefits of electric vehicles in Portugal.