LeasePlan has released its annual Car Cost Index, with the latest analysis revealing that compared to 2018, there has been a sharp decline in the price differences between electric cars and petrol/diesel vehicles across the European markets.
The analysis shows that the UK is now the second most cost-effective country in Europe to own an electric vehicle. According to the Car Cost Index, the average monthly total cost of ownership for electric vehicles in the UK is €676, with only Greece offering a lower total cost of ownership of €656.
Across all vehicle types, the UK sits under the average total cost of ownership (€617) at €602, with Eastern European countries including Romania, Slovakia, and Czech Republic ranking cheaper.
Wealthier countries tend to have higher costs, though in the Netherlands & Italy, the affordability is relatively low with the average total cost of ownership being relatively high compared to the GDP. For Greece and the UK, the average total cost of ownership is relatively low compared to GDP, indicating that driving a vehicle in these countries is relatively cheap
Alfonso Martinez, managing director of LeasePlan UK said:
“This year’s Car Cost Index has shown that electric vehicles are increasingly becoming a rival option to traditionally fuelled vehicles, as costs are continuing to fall and legislation, such as the Company Car Tax announcement from July, is now actively encouraging drivers to look for electric alternatives.
“The issue around supply, however, isn’t going anywhere. For the nation to see a real boost in the uptake of electric vehicles, we need reassurance from manufacturers that these products will be available in the UK in shorter timeframes than what is predicted currently.”
Further key findings from 2019 are:
For ICE cars, depreciation (36%) is responsible for the majority of total costs, followed by taxes (20%), fuel (18%), insurance (13%), maintenance (9%) and interest (5%). For electric drivers, depreciation makes up a larger share (52%), however costs are saved through using electricity for fuel. EVs also benefit from consistently lower taxes and maintenance costs across Europe.
Driving an EV is cost competitive compared to driving an ICE vehicle (defined as the average between diesel and petrol) in Norway (same price) and the Netherlands (1% more expensive). In the UK and Denmark, cost competitiveness for EVs is in reach.
The Netherlands is the most expensive place to drive a diesel car (€937/month). In the Netherlands the registration tax (BPM) for diesel cars can add as much as 35% to a diesel vehicle’s net investment value. Conversely, Romania is the cheapest place to drive a diesel car (€407/month).
Norway is the most expensive place to drive a petrol car (€851/month). This is significantly higher than the European average of €594 per month. Greece is the cheapest place to drive a petrol car (€445/month).
Weighted for GDP, drivers in the Netherlands and Italy have the highest total cost of ownership for all powertrain types, while drivers in Greece and the UK have the lowest.