Electric cars are becoming a more attractive option for drivers in the UK, as a recent study reveals that used electric vehicles (EVs) could save their owners an average of £1,600 per year compared to petrol equivalents. The Energy and Climate Intelligence Unit (ECIU) think tank conducted the analysis, highlighting that savings have increased since early 2023 due to the decreasing cost of second-hand electric cars. This shift has made EVs “no longer more expensive to buy,” according to the research.
The analysis focused on the six best-selling EV models in the UK, comparing their ownership costs like purchase and running expenses, including electricity costs, with petrol cars. The study found that significant savings could be made, with the Audi e-tron offering the biggest potential savings at around £2,600 per year, while the Renault Zoe showed smaller savings of around £875 per year. These figures indicate the financial benefits of owning a used electric car in the current market.
The UK government implemented a Zero Emission Vehicle (Zev) mandate on January 1, requiring manufacturers to sell a minimum percentage of zero-emission vehicles each year. This policy aims to boost the adoption of electric vehicles, with the mandate set to increase annually until reaching 100% by 2035. Failure to comply with the mandate could result in penalties for car manufacturers, incentivising them to offer more electric vehicle options to consumers.
The ECIU estimated that collectively, new EVs purchased under the Zev mandate could save drivers nearly £40 billion by 2035 when resold as used cars. The increasing popularity of electric cars is evident, with record levels of purchases of pure electric used cars reported by the Society of Motor Manufacturers and Traders. The data shows a 57% increase in used electric car sales between July and September compared to the previous year.
Colin Walker, an analyst at ECIU, noted that more families are transitioning to EVs in the second-hand market, taking advantage of the cost savings and moving away from the higher costs associated with petrol cars. He emphasised the success of the Zev mandate in driving down EV prices, leading to an increase in sales. Walker highlighted the potential consequences of delaying EV adoption, as any slowdown in meeting the Zev targets could result in increased costs for British drivers in the future.
Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds are reportedly meeting with automotive manufacturers to discuss potential adjustments to the Zev mandate. While industry leaders may seek relaxation of the rules, the prevailing trend towards electric vehicles suggests a promising future for sustainable transportation in the UK. The availability of affordable and environmentally friendly used electric cars is expected to continue to grow, offering more drivers the opportunity to switch to cleaner transportation options.
In conclusion, the shift towards used electric cars presents a significant opportunity for drivers to save on costs while contributing to reducing carbon emissions. The research underscores the financial advantages of owning an electric vehicle and highlights the effectiveness of government policies in driving the transition to sustainable transportation. As the EV market evolves and technologies advance, the prospect of widespread adoption of electric vehicles in the UK appears increasingly feasible, paving the way for a greener future in the automotive industry.