Electric car prices | Saga Car Insurance

How much are electric cars?

Find out about the total costs of buying and running electric cars

Published - 21 Jun 2022 | Reviewed - 29 Feb 2024

Can you afford to go electric – and is now a good time to switch?

If you’re keen to show your green credentials, or want to try a new way of driving, it might be time to try an electric car. But can you afford to, and does the cost of buying and running an electric car work out cheaper or more expensive than petrol or diesel?

How much does an electric car cost?

Electric cars are more popular than ever, as models get better, people become more aware of the benefits, and government policy directs us all to consider switching to zero-emissions vehicles . While electric cars have a reputation for being pricy, the number of available options is growing and there’s an expanding choice of models to suit most budgets.

New electric car prices

The cost of buying a new electric car is closer to similar petrol and diesel models than it used to be. Although electric car prices are coming down, some models can still be comparatively expensive. That being said, prices do vary across the electric car market, and you can still find cheaper electric models to buy.

Are second-hand electric cars worth buying?

The second-hand electric car market hasn’t had enough time to develop properly yet, so at the moment there aren’t as many attractive deals out there as there are for traditional cars.

Older electric cars may also have lower quality batteries with shorter life expectancies, and the technology is moving fast so models may date quickly. But, as confidence in the longevity of electric cars improves, the used market is growing.

Can you lease an electric car?

This might be another avenue to explore if you’re keen to keep costs down. With leasing you don’t own the car but pay to drive it each month for a fixed monthly fee, and at the end of your lease you move on to another brand-new model.

How much does it cost to run an electric car?

Before you buy, you’ll want to investigate the likely cost of running and maintaining an electric car. Although some aspects of owning an electric car are cheaper, others cost as much, if not more, than an equivalent petrol or diesel model.

Where you may save...

Charging:

Costs vary dependent on where and when you charge your car, but even with the energy price hikes it will still be cheaper to run on electricity rather than petrol or diesel.

Road tax:

Electric cars are currently zero-rated for car tax , which can be a significant saving against conventional cars. Although from 1 April 2025 electric vehicles will need to pay for road tax.

Electric car service cost:

Usually this works out much cheaper , as electric cars have fewer moving parts and fewer things prone to wearing out and needing replacement. You will still need to maintain things like brake fluid, air conditioning, and the cabin air filter.

Congestion charges:

All fully electric cars are completely exempt from the London Congestion Charge, as well as the Ultra Low Emission Zone (ULEZ) charge.

Where you may not...

Repairs:

Electric cars have fewer complex parts than petrol or diesel cars so there’s less that can go wrong. They don’t need regular oil changes, or timing belt replacements like with petrol or diesel cars. But where you do have issues, for example with the battery, costs can be higher due to a short-term shortage of technicians with the skills to repair electric cars.

Insurance:

As electric cars tend to be more expensive, this alone can mean that insurance costs are higher, along with the higher repair costs that have been seen in the past. But as these costs come down, insurance prices should also fall. Saga can offer you different levels of cover with our Saga Plus, Saga Select and Saga Standard Comprehensive Car Insurance.

Over time, electric cars cost less to maintain and run, so after the initial outlay you are likely to start to see savings against a similar petrol or diesel car.

What’s the cost of a home charger for an electric car?

Electric car charger installation costs typically range between £500 and £1,500*. Getting a home charger will more than pay for itself quite quickly, compared to using other charging options.

Electric car charging points should be professionally installed by a certified charging provider. They will help you choose the best position for a charger and will show you how to use it. You don’t usually need planning permission to install a home charger. There are a growing number of specialist companies who will do this for you, as well as energy companies who provide installation.

*Prices correct January 2024 from DriveElectric

How much does an electric car battery replacement cost?

Although you may benefit from overall lower running costs, the one significant thing you don’t want to go wrong with your electric car is the battery.

Most manufacturers have a five to eight-year warranty on an electric car battery , although the current prediction is that a typical battery will last 10 -20 years before needing replacement. By keeping your battery charged between 20% and 80% you can avoid overcharging and help prolong the battery life.

Will electric cars come down in price?

As demand grows, manufacturers can produce more mass market cars, and advances in batteries mean the costs are falling. Government incentives to sell more electric cars should help drive prices down further.

Who are Saga's car insurance policies underwritten by?

Saga’s car insurance policies, exclusively for people over 50, are unique products designed by us specifically for our customers. They are underwritten by a number of carefully selected insurers that provide high standards of quality and service.