Calculating the total cost of ownership is the only way to work out exactly how much an electric car is going to cost you.

When it comes to buying an electric car one of the major barriers is the high upfront costs. Even when you factor in Government support in the form of VRT relief and grants the purchase price is often significantly higher than comparable petrol or diesel cars. But the price is only one variable so in order to properly compare the cost of an electric car with an ICE car you need to work out the financial cost of owning an EV or the total cost of ownership.

The total cost of ownership (TCO) is the purchase price of a car plus the running costs - charging, motor tax, insurance, and maintenance. Assessing the total cost of ownership means you can evaluate the lifetime cost savings of an electric car.

So what to consider

Purchase price

The high purchase price of electric cars when compared to similar-sized petrol or diesel models is still an inhibiting factor e.g. An electric version of Peugeot’s 208, one of Ireland’s most affordable EVs, starts at €30, 545 while a petrol version costs from €23,770 and a diesel €27,020.

Electricity costs

Charing in the comfort of your own home is not only the most convenient way to charge but also the cheapest. On the current Electric Ireland night rate, the cost to fully charge for example a Hyundai Kona with a range of 449km is around €7, so considerably cheaper than petrol or diesel. However, the price of electricity will differdepending on where you plan to charge your electric car so it will be significantly more expensive if you are relying on the public charging network.

Tolls

EVs qualify for toll discounts, on several toll roads at off-peak times, with a 50% reduction for full EVs and 25% for plug-in hybrids.

Depreciation

All cars depreciate but some cars depreciate faster than others. Generally, electric cars depreciate at more or less the same rate as petrol and diesel and similarly, some models hold their value better than others. However, the future depreciation of petrol and diesel cars will be greatly affected by government policy in the coming years. It is likely both will become more expensive to own and run, so electric cars are likely to be more resistant to losing value as we move closer to 2030. Size also matters when it comes to residual values and smaller cars generally depreciate faster than large and medium cars so you need to factor that into any total cost of ownership calculations

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Insurance

Insurance is often related to the purchase price of the car and therefore can be higher for electric cars. Some insurance companies offer specific discounts to EV drivers so always shop around.

Maintenance

Maintenance costs are lower as an EV has fewer moving parts so you are much less likely to end up with expensive repair bills. However, it is important to remember that the maintenance on a plug-in hybrid would be largely similar to that of a conventionalcar.

Motor tax

Fully electric cars pay €120 a year for motor tax while plug-in hybrids pay €170.