Can I Afford An Electric Car? Costs, Grants & Tax Explained

Electric vehicles have been steadily gaining popularity over the past decade - and for good reason.

Owing to their significant environmental benefits and efficiencies, more and more drivers make the switch to electric and hybrid from petrol and diesel each year.

However, despite certain cost exemptions and grants, electric cars are still thought of as being more expensive than their combustion engine counterparts. Below, we run through the costs and take a look at current ownership trends to help you decide whether an EV is right for you (and your budget).

EV up-front costs

Back in June 2024, the average price of a brand-new electric car in the UK was £54,324.61. In comparison, the cost of buying a medium-sized regular car was just £27,228 at this time, showing a difference of almost half.

However, recent research published in The Guardian suggests that this gap has closed entirely. 

In April 2026, the average price of a new electric car on Auto Trader was £42,620, making it surprisingly £785 cheaper than the average price of a new petrol model at £43,405.

It’s clear to see that, as electric vehicles have become a more prominent feature of the UK’s roads, their “novelty” and the associated price tag have lessened. In fact, some EV models like the Leapmotor T03 and the Dacia Spring Electric can be purchased for as little as £16,000.

Electric vehicle running costs

Aside from the purchase costs, there are also charging, servicing, and repair fees to consider when weighing up whether you can afford an EV. 

EV charging costs 

According to recent research from Pod Point, it costs about £13 for a full charge at home (for a typical electric car with a 60kWh battery and ~200-mile range).

In contrast, an average family car costs between £77 and £96 to fill up (based on petrol - 140p per litre - and diesel - 160p per litre - prices). That said, it is much cheaper to run an electric car than a petrol or diesel one, even with the changing fuel prices.

Similarly, an August 2026 study from LoveElectric found that a typical UK driver charging at home could save over £1,000 per year by switching from petrol to electric. If petrol is 140p per litre and electricity costs 24.67p/kWh, the home-charged EVs cost about ? of petrol equivalents per mile.

Maintenance & repairs/servicing

When it comes to EV servicing and MOTs, many drivers are misinformed, thinking that electric vehicles are likely to have more moving parts, more complex repairs, and higher maintenance charges. However, we know the opposite to be true. 

We have an entire blog dedicated to the running costs of regular versus electric vehicles here to carry on the comparison if you're interested.

Book an EV Service Book a Hybrid Service

Tax & insurance 

Up until recently, zero-emissions vehicles were exempt from road tax (VED), with many drivers choosing to go electric because of this. 

However, as of the 1st of April 2025, hybrid and electric car owners have had to pay road tax just like petrol and diesel drivers, with luxury EV owners also paying an additional “expensive car supplement”. You can work out what your EV road tax rate will be in our simple guide.

What’s more, an additional 3p-per-mile tax has been proposed for EVs from April 2028 onwards.

With those things considered, owning an EV isn't as cheap as it once was tax-wise. However, full EVs are still exempt from taxes like the ULEZ.

What financial support is there for EV owners?

Despite the new taxes on EVs, there are still schemes in place to make ownership more affordable, for example:

• Government grants are available for installing home charging points.
• The Clean Air Financial Support Scheme.
• The Electric Car Grant for assistance with purchasing new EVs.

A new alternative: EV finance/ EV leasing

Instead of buying a new electric car outright, have you considered purchasing a new EV “on finance”, or leasing a second-hand EV? Thousands of drivers, as it turns out, have.

EV finance is a growing trend 

Looking at search data from the past 5 years, Google searches for the term “EV finance” have grown by 800%, increasing by 350% since 2025 alone (Google Trends). This represents a rapidly growing number of drivers who are considering getting an EV (new or second-hand) on finance. 

The search data matches actual purchases, too, with the BVRLA (British Vehicle Rental and Leasing Association) recording a 170% rise in used electric car leasing over 2025.

Second-hand EVs & affordability

So, how much does a second-hand EV cost right now? According to Auto Trader's Retail Price Index, 1 in 5 second-hand EVs are under £15,000. And, as of August 2026, 43% of all used EVs are £20,00 and under. In fact, some of the cheapest EVs available to purchase on the market are under £2,000. 

Purchasing a hybrid or electric vehicle second-hand seems to be offering drivers a new avenue to EV ownership; one to consider if you don’t fancy the costs associated with brand-new models. Just do your research on what to look out for when buying a used car first.

EV finance options 

If you want to finance an electric car, you have three main options available:

But, even with all those advantages, for many potential buyers, the perceived high up-front figure remains an off-putting concern. So, when (and will) electric cars become more affordable for the average consumer?

Will electric vehicles be more affordable in the future?

As is the case with many ‘green’ products before they become more widely available, the costs make them inaccessible to many. Is there scope for cheaper EVs on the horizon?

1. Technological advancements

Battery technology is a relatively new emergent field, especially in terms of its integration into automotive engineering. But, this technology, its functionality, and its capabilities are ever-advancing, meaning that costs are likely to reduce with time.

The recent developments of solid-state batteries mark a significant stride towards greater energy density, and longer battery life spans at a lower cost. Meanwhile, production techniques for EV electrical parts are improving to reduce overhead expenses. As an example, assembly lines are now often automated, and the recycling process is increasingly streamlined. 

Thanks to these gains, the bottom-line cost of an EV (and the largest reason for their high sale prices) is gradually declining.

2. Government policies and incentives

As we spoke about above, there are a number of government incentives already in place that aim to bring down the costs of electric vehicles. As we get ever closer to 2035 (when the sale of new petrol and diesel cars will be banned), we can expect the UK to ramp up its promotion of EVs even further, which may manifest in more robust incentives, increased grants, and subsidies. 

As well as this, it wouldn’t be out of the question to expect greater attention to charging infrastructure on the horizon, too.

3. Economies of scale

Another factor that comes into play when considering the future costs of EV is the economy of scale. To risk stating the obvious: as electric vehicle production volumes increase, the cost per unit proportionately decreases: it’s cheaper to make in bulk.

4. Second-hand EV market growth

Lastly, we have to mention the rapid growth of the second-hand market for electric vehicles, and its role in making this type of car more accessible for consumers.

As more new EVs are sold, the supply of used models increases. The outcome? A much broader range of options is available at a lower price. As businesses and fleets (who currently drive much of the new EV market) begin to replace their older models, we can expect this trend to start to increase more too.

See here for our guide to buying a second-hand car

An affordable future for electric vehicles?

Bearing all that in mind, then, it’s safe to say that we can expect EV sale prices to fall in the future, but it’s difficult to determine when. As more cars are made, second-hand models get more common, and EV technology gets cheaper, prices will drop.

Roger Griggs, Kwik Fit’s Communications Director, says: 

“Like beauty, affordability is often in the eye of the beholder. We all have our own personal relationship with our cars – some people want to buy the best car they can possibly afford and will sacrifice spending in other areas to get it. Others are happy to go for a much more basic model as long as it gets them from A to B. 

Fortunately, the ever-increasing range of EVs on the market, both new and used, will mean that there is widening choice for drivers, whatever their own criteria.”

EV services at Kwik Fit 

At Kwik Fit, we have a range of services designed to keep electric vehicles safe, running smoothly, and in the best condition for as long as possible. 

From specialised EV tyres to thorough EV servicing (including checks of brakes, batteries, sensors, lights, and tyres) and EV MOTs, we’ve got you covered.

For a complete rundown, read our guide ‘What EV Services Does Kwik Fit Offer?’.

For the latest EV and hybrid updates, keep up to date with the Kwik Fit blog. Or, if you have any questions, get in touch with our friendly team of experts.