Used EVs save owners average of £1,600/year compared with petrol models – study
21 November 2024, 09:49
A think tank said savings have risen since early 2023 as second-hand electric vehicles are ‘no longer more expensive to buy’.
The UK’s best-selling used electric cars could save their owners an average of £1,600 per year compared with their petrol equivalents, according to new research.
The Energy and Climate Intelligence Unit (ECIU) think tank, which conducted the analysis, said savings have risen since early 2023 as second-hand electric vehicles (EVs) are “no longer more expensive to buy”.
It claimed the study shows a requirement for each manufacturer to sell a minimum proportion of zero emission vehicles (Zev) each year “is working”, amid a report that ministers are meeting with car industry leaders on Wednesday to discuss easing the policy.
The ECIU’s research took into account the six best selling EVs in the UK and compared their cost of ownership – including purchase and running costs such as electricity – with petrol versions.
The biggest savings were found to be for the Audi e-tron at around £2,600 a year, with the smallest for the Renault Zoe at around £875 per year.
Under the Zev mandate introduced on January 1 by the Conservative government, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, which generally means pure electric.
The threshold will rise annually until it reaches 100% by 2035.
Failure to abide by the rule or make use of flexibilities – such as carrying over allowances from previous years – will result in a requirement to pay the Government £15,000 per polluting car sold above the limits.
The ECIU estimated that new EVs bought while the mandate is in place could collectively save drivers who go on to purchase them second-hand nearly £40 billion by 2035.
The Sunday Times reported that Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds will hold talks with automotive manufacturers, who hope to secure a relaxation of the rules.
Society of Motor Manufacturers and Traders figures shows purchases of pure electric used cars are at record levels.
Some 53,423 of the cars changed hands between July and September, up 57% compared with the same period last year.
ECIU transport analyst Colin Walker said: “Increasing numbers of regular families are now trading in for an EV on the second-hand market, taking advantage of the hundreds of pounds of savings they can generate every year, and turning their backs on paying the ‘petrol premium’ of their old car.
“The previous government’s Zev mandate policy is working, with manufacturers discounting their EVs as they compete for sales to hit their targets.
“As prices are driven down, sales are going up.
“The increasing number of new EVs being sold today will hit the used market in around three to four years’ time, opening up the opportunity for cheaper and cleaner electric driving to the majority of people, as most people buy their cars second-hand.
“Any slowdown in the roll out of EVs under the Zev mandate could cost British drivers millions if not billions of pounds in extra driving costs in the coming years.”
