LeasePlan has released its annual Car Cost Index, a comprehensive analysis of the true cost of owning a car – including fuel, depreciation, taxes, insurance and maintenance – in 22 European countries including the UK.
The latest findings shows that mid-size and compact electric vehicles (EVs) are now more affordable than petrol and diesel cars in the UK. This is an improvement on the findings from last year’s analysis, which found that only mid-size EVs were more affordable.
For a mid-size EV the total cost of ownership (TCO) is £724* a month. This is £95 less than the TCO for an equivalent petrol model, and £37 than an equivalent diesel.
For a compact EV the TCO is £646* per month. This is £72 less than the TCO for an equivalent petrol model and £63 less than an equivalent diesel model .
The cost savings are largely down to EVs having the lowest rate of fuel/energy costs, and EV drivers currently paying zero road tax until 2025, keeping the TCO low for drivers.
Alfonso Martinez, Managing Director of LeasePlan UK, said:
“As EV uptake continues to gain traction in the UK, drivers across the country should be considering their options for going electric. With both compact and mid-size EVs now more affordable than their petrol and diesel counterparts, driving electric has never been more accessible, which midst a background of soaring fuel costs, will be especially encouraging for the UK public. What’s more, the 2030 ban on the sale of new petrol and diesel vehicles and the expansion of Clean Air Zones across the country will continue to provide financial incentive for Britons to switch to EVs.
“The automotive industry has made great progress to bring electric driving costs to their current level, but the work doesn’t stop here. To prove its credentials as a world leader in the fight against climate change, the UK Government must prioritise investment in charging infrastructure. With the recent announcement that the Home Charge Grant will be unavailable to certain homeowners from April 2022, it is clear that there is still a job to be done in developing charging infrastructure and enabling financial incentives to encourage the switch to an EV – but it’s positive to see the Government allocating investment to other properties such as rentals and transport hubs.”
Key findings from LeasePlan’s 2021 Car Cost Index are:
- EVs are cost-competitive with petrol and diesel vehicles in the sub-compact, compact, mid-size standard and mid-size premium segments in the UK.
- EVs in the premium mid-size (D2) segment are fully cost competitive compared to internal combustion engine vehicles (ICEs) in 17 countries, including: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom
- EVs in the compact (C1) segment are fully cost competitive compared to ICEs in 14 countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Sweden, Switzerland and the United Kingdom
- The average monthly cost of driving a car varies hugely across Europe, from €743 a month in Greece to €1,138 in Switzerland
- Relative to GDP, the total cost of ownership is highest for drivers in Switzerland and Portugal, and lowest for drivers in Denmark and Germany
- Poland is the cheapest place to drive a petrol car, while Greece is the cheapest place to drive a diesel car
Notes to editors
- The LeasePlan Car Cost Index 2021 is available to download here
- *Cost conversions from Euros to GBP based on XE.com.
- The 22 countries included in the Car Cost Index are: Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, Switzerland and the United Kingdom
- In the 2021 Index, costs are averaged over the first four years of ownership and assume 30,000 km of driving a year. ‘Cost competitive’ is defined for the purpose of the Index as EVs which are no more than 5% more expensive than their ICE counterparts
- LeasePlan has committed itself to achieving net zero tailpipe emissions from its funded fleet by 2030. LeasePlan is also a founding partner of The Climate Group’s EV100 initiative, launched around the UN General Assembly in September 2017
Beth Howard or Hannah Eyermann
Tel.: 01865 770381
LeasePlan is a global leader in Car-as-a-Service, with approximately 1.8 million vehicles under management in 29 countries. LeasePlan purchases, funds and manages new vehicles for its customers, providing a complete end-to-end service for a typical contract duration of three to four years. LeasePlan is committed to taking a leadership role in the transition to zero-emission mobility and has set itself the ambitious goal of achieving net zero emissions from its funded fleet by 2030. With over 50 years’ experience, LeasePlan’s mission is to provide what’s next in sustainable mobility so our customers can focus on what’s next for them. Find out more at www.leaseplan.com/corporate
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