Understanding the true cost of owning an electric vehicle can feel complicated, especially if you’re comparing it against a petrol or diesel car for the first time. The upfront price often gets the most attention, and it’s true that even with supports like SEAI grants and VRT relief, many EVs still start higher than their ICE equivalents. But the purchase price is only one piece of the puzzle. To make a fair comparison, you need to look at the total cost of ownership (TCO).

TCO goes beyond the initial cost and includes everyday running expenses such as charging, tax, insurance, servicing, and long-term depreciation. Only by considering the full picture can you see how the overall cost of owning an EV stacks up, and where the potential savings come from.

Purchase Price

Electric vehicles can often start higher than petrol and diesel models, but the gap is closing quickly. For instance, the Peugeot e-208 begins at around €30,995 (after grants), compared to €24,500 for petrol and €27,900 for diesel. Step up in size and range, and the Hyundai Kona Electric comes in at about €36,350, offering generous equipment, strong range, and modern technology as standard.

Electricity Costs

Charging at home is by far the most cost-effective way to run an EV. At current night-rate electricity prices, fully charging a Hyundai Kona Electric (up to 514km WLTP range) costs roughly €9. Public fast chargers are more expensive, typically €0.55–€0.65 per kWh, meaning a full charge could exceed €35. Most EV drivers rely heavily on home charging, which keeps running costs pleasantly low.

Depreciation

Resale values for EVs are improving, especially for popular crossovers and SUVs. Data from the Irish used-car market shows models like the Peugeot e-2008, Kia Niro EV, and Hyundai Kona Electric often retain over 50% of their value after three years. Meanwhile, ICE vehicles face more long-term uncertainty as Ireland moves toward ending new petrol and diesel sales in 2030, making EVs an increasingly secure long-term option.

Insurance

Insurance for EVs can still be slightly higher due to their purchase price and repair complexity, but the difference is narrowing. Some insurers now offer EV-specific discounts or policies, so it’s well worth shopping around to find the most competitive rate.

Maintenance

This is one area where electric vehicles truly shine. With fewer moving parts and no oil, timing belts, exhaust components, or complex gearboxes, EV maintenance costs are significantly lower than those of ICE or even hybrid cars. Outside of tyres and brakes, there’s very little to worry about, which means fewer surprises over the lifetime of the vehicle.

Motor Tax

In Ireland, BEVs benefit from low motor tax of just €120 per year, while PHEVs pay €170. These rates compare very favourably with many petrol and diesel vehicles, especially larger engines and higher-emission models.

The Verdict

While the upfront cost of an EV can still be higher, the total cost of ownership often tells a very different story. Lower running costs, reduced maintenance, affordable motor tax, and improving depreciation all add up. For many drivers, switching to electric now makes financial sense, not just environmental sense.