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Electric Car Prices – Guide

Posted by: VIP Gateway, 27th Dec 2023

Electric Car Prices – Guide

If you’re considering embracing the greener option of driving an electric vehicle (EV), you’ll want to know the cost of electric car ownership. As experts in electric car leasing, we understand the costs involved and know how to make electric car driving more affordable by offering great lease deals.

This cost-effectiveness is one of The 10 Best Reasons to Lease an Electric Car we cover in our article, which is a good read if you’re considering switching to electric driving. Of course, there are other cost implications to consider whether you want to buy or lease an electric car. Keep reading to uncover information about these costs, starting with the purchase price of EVs in the UK.

What is the average price of an electric car UK?

The average purchase price of an electric car in the UK is around £49,000. The actual cost of purchasing an electric car depends on factors such as which model you choose. To give you more insight, we’ve listed the current RRP for 10 of the most popular EVs in the UK in the table below. You also have the opportunity to click on the links and discover the lease deals available for each model.

EV Model	Recommended Retail Price (RRP) for the standard model from
Tesla Model 3	£39,990
Ford Mustang Mach-E	£50,830
Kia Niro EV	£37,325
Tesla Model S	£95,630
Volkswagen ID.3	£37,255
Hyundai IONIQ 5	£42,665
Nissan Leaf	£28,495
Kia EV6	£45,275
Audi e-tron	£68,685
Tesla Model Y	£44,990

What is the cheapest electric car in the UK?

The Citroen Ami is often listed as the cheapest electric car in the UK. The RRP for the vehicle is £7,695. Technically, this isn’t a car; it’s a quadricycle. This means it’s a compact two-seater. So, it’s not ideal for many people. But it could be a good option if you’re looking for a basic means of transportation; and you only need a motorcycle licence to drive it.

For a real car that’s at the cheapest end of the EV market, there’s the Smart EQ fortwo coupe, which has an RRP of £21,870, and the Seat Mii Electric with prices starting from £22,000.

What is the most expensive electric car in the UK?

At the other end of the EV market is the Mercedes-Benz EQS SUV, which has an RRP of £129,470. Also popular in the luxury EV market are the BMW i7 with an RRP of £113,065 and the Porsche Taycan with an RRP of £79,255.

How much are the running costs for an electric car?

The purchase cost isn’t the only expense associated with driving an electric car. You must also consider ongoing running costs. Some costs, such as charging vs fuel, are lower with an electric car, while expenses such as insurance are higher. We’ll look at each cost in more detail to give you the information you need to make your electric car leasing or purchasing decision.

MOT costs for an electric vehicle

MOT costs are not welcomed by any driver. The good news is that the cost of the MOT test is the same for electric cars as it is for vehicles with a combustion engine. You can never pay more than the £54.85 maximum fee set by the government. In addition, any remedial work is usually cheaper as there are fewer working parts in an EV.

It’s also worth mentioning that a new electric car doesn’t need an MOT until it’s three years old. So, if you choose to lease a car for less than three years and then take out a lease on a new car, you won’t need to pay for an MOT.

Road tax for an electric vehicle

Currently, EVs are exempt from road tax, so you don’t need to pay anything. However, this situation changes in May 2025 when EV owners will begin paying road tax. If you choose to lease an EV, road tax is included in your lease deal, so you don’t have to account for it as an additional cost.

The cost of charging an electric vehicle

The cost of charging an electric car is significantly lower than the cost of refilling a petrol or diesel vehicle. It costs around 19 - 21p per mile for fuel, whereas charging an electric car costs around 3p per mile for home charging and around 18p per mile for rapid public charging.

Insuring an electric vehicle

This is one cost that is often significantly higher for electric car drivers. There are several reasons why insurance policies for EVs cost more, including,

Faster acceleration
Higher purchase cost
High cost of replacement batteries
Lack of expert mechanical knowledge regarding EVs

You can see the difference between insurance costs for EVs and combustion engine vehicles when you consider that the average quote for insuring a petrol or diesel car over the last twelve months is £824, and the average quote for an EV is £959. These costs represent 29% and 72% increases on the previous 12 months, respectively.

It’s important to remember that if you choose to lease an electric car rather than purchase one, you’re still responsible for insuring the vehicle. You can reduce the cost of insurance by choosing a less valuable vehicle.

For more information about electric car running costs, read our guide on the subject.

Want to cut the cost of driving an electric car?

One of the best ways to cut the cost of driving an electric car is to lease rather than buy. Search our special offers and in stock deals to get behind the wheel of an EV at an affordable price. When you find a deal that suits you, click the enquiry button to start the leasing process. You can also call us directly on 0161 814 9623 or email hello@vipgateway.co.uk and speak to a member of the VIP Gateway team. We’re happy to help you find an electric car leasing deal that’s a good fit for your budget.