Comparing costs: EV vs ICE

What are the cost components?

1. Depreciation

   The depreciation of electric vehicles is higher than for internal combustion engine vehicles (ICE). The amount you pay for a leased electric vehicle is largely based on the expected depreciation. Electric vehicles will almost certainly be more advanced at the end of a two, three or four year lease. At the end of the contract, you will not have to worry about the residual value of the car.

2. Energy & fuel costs

   Charging your car at home will also increase your electricity bill, but how much your bill increases depends on factors such as the charging time and where you live. Electricity costs can vary considerably from region to region. Remember that charging your car overnight can save you 30% on charging costs. Public charging stations are generally more expensive than home charging. The cost of charging an electric car at a public charging point depends on the network of charging points, the capacity of the charging points and the service provider. The price of public charging points also varies according to the power rating.

3. Maintenance

   Across all vehicle sizes, electric vehicles have lower maintenance costs than internal combustion engine vehicles relative to the price of the vehicle. Based on our TCO study, we can say that the cost is 11% lower. Electric vehicles have far fewer items requiring maintenance than ICE vehicles, which means that the maintenance costs of electric vehicles are much lower compared to ICE vehicles. Nevertheless, they still require regular maintenance, which is costly. Parts requiring maintenance include tyres, brakes, windscreens, wiper blades, washer fluid and battery. In addition, general wear and tear can incur costs.

4. Tyres

   Drivers should bear in mind that because electric cars run on batteries, tyres must also be able to withstand the weight of the batteries. Electric car tyres need to have a stronger structure to withstand the weight of the battery and car components.

5. Damage repair

   All vehicles, including ICE vehicles, are becoming increasingly complex in terms of high-tech features and new, more advanced electronics. Advanced electronics are also expensive to repair. Repairers need to invest in staff training and new equipment to work on electric vehicles. ICE vehicles also have more Advanced Driver Assistance Systems (ADAS). The advanced technological features that electric vehicles are packed with are expensive to replace. Batteries make electric vehicles heavier than similarly sized ICE vehicles. It also means electric cars use more expensive, lightweight, high-strength materials to try to balance the weight of the battery. These materials are also expensive to replace.

6. Insurance 

   In general, electric vehicles cost more to insure than internal combustion vehicles. Because electric vehicles are more expensive to buy and repair, insurance companies charge more to insure an electric vehicle than an internal combustion engine car. Nevertheless, the savings you make on fuel and tax incentives can more than offset the extra costs.

7. Taxes

   Vehicle tax is payable annually on cars, vans and lorries registered in Finland and used in traffic. The vehicle tax consists of a basic tax and a circulation tax. The basic tax is usually based on the CO2 emission value of the vehicle, as reported by the manufacturer to Traficom. The vehicle excise duty is based on the total mass of the vehicle and its propulsion power. For petrol-driven cars, only the basic vehicle tax is charged. If the vehicle is powered or fuelled by another fuel, such as diesel or electricity, then the vehicle will also be subject to the basic tax and the vehicle tax.<for countries="" to="" add=""></for>