Electric car financial benefits

Running Costs

You will never need to visit a petrol station in an electric car so you will save on fuel costs.  No more keeping an eye on petrol prices and £70 fill ups.  You will however have to pay for the electricity used to charge your car but this can work out to less than 2p per mile.

Typically electric cars also have lower maintenance costs than conventional vehicles as they have fewer moving parts.  Batteries are very expensive if replacements are required however most modern cars cover the batteries under their warranty, which is typically 3 years and 60,000 miles.  Some manufacturers will now lease you the batteries for your car which means you wont be stumped with any unexpected bills.

No London Congestion Charge

All pure electric cars and plug-in hybrid cars are currently exempt from the London Congestion Charge.  This will save you up to £10 a day once registered.  If you work in London, and travel in on a daily basis, this can save you thousands of pound a year.  Full details can be found in our London Congestion Charge guide.

Reduce/Free Parking

Electric Cars currently receive a number of parking concessions with discounts up to 100% for car parks, metered bay parking and residential & business parking permits around London and across the country.  Full details can be found on our Electric Car Parking page.

No Road Tax (VED) and No car showroon tax (first year rate)

In the UK, road tax (VED) for cars registered after 1 March 2001 is based on CO2 emissions.  As electric cars have no exhaust, and no emissions, they qualify for a zero rate of car tax, as do all vehicle with emissions below 100g/km C02 emissions.  As all Plug-in Hybrid cars are very efficient and have tailpipe emissions of less than 100g/km C02 emissions, they are also exempt from paying road tax.

Electric and Plug-in Hybrid cars also pay the zero rate of first year road tax, otherwise known as Car Showroom Tax.

Reduced Company Car Tax /BIK

Pure electric cars (0g/km CO2 emissions) benefit from a 0% BIK rate and this will continue to be the case until April 2015.  They will then be in the 13% BIK banding.

A 5% BIK band (8% for diesel cars) is now in place for cars that emit below 75g/km CO2 which covers most plug-in hybrid cars, but that’ll change in 2015 to the 13% BIK banding.

Government Grants

New electric cars and plug-in hybrid cars benefit from upto a £5,000 plug-in car grant.  Full details of which can be found on our Plug-in Grant page.