Electric vs conventional cars
Comparing the total cost of ownership
What are the cost elements?
The cost difference between cars with an electric motor and internal combustion engine (ICE) has been reducing every year, meaning that in some cases electric cars are cheaper to run. When comparing costs, it is important to look at the total cost of ownership (TCO). Some cost elements are more expensive for electric cars, such as tyres, while others are much cheaper, such as energy. However, cost is affected by many factors. The total cost of ownership consists of the following cost elements:
DepreciationElectric cars have higher depreciation than internal combustion engine (ICE) vehicles due to rapid technological advancements. When you lease an electric vehicle, the amount you pay is based on the expected depreciation rate. In the case of electric cars, in addition to the major tax benefits you enjoy, leasing an electric vehicle is also a safe way to reduce your risk and enjoy the benefits of new technology without stress and worries. Electric cars are almost certain to be more advanced at the end of a three or four-year lease.
Energy and fuel costsCharging your car at home will also cause your electricity bill to rise, but how much will depend on factors like when you charge and where you live. The cost of electricity can vary by region. Bear in mind that charging your car overnight can save you money. Public charging stations tend to be more expensive than charging at home. The cost of charging your electric car at a public charging location depends on the power provider, the location of the charger and its power rating.
MaintenanceElectric vehicles have lower maintenance and repair costs than ICE vehicles, irrespective of their size. Electric cars have many fewer moving parts than those with an ICE, meaning that the cost of maintaining them is much lower. Despite that, they continue to require some regular maintenance which entails costs such as: tyres and brakes, windscreens, wiper blades and washer fluid, battery repair or replacement (rare!), and general wear and tear.
TyresDue to their extra weight, electric cars need to have more durable tyres. More specifically, tyres must have a stronger outer wall and a durable mix, such as nylon, to enable them to withstand the weight of the battery and car parts.
Damage repairVehicles, including ICE vehicles, are becoming increasingly complex due to the use of high tech and very advanced electronic systems. Car repair shops need to make investments in new equipment and train their employees to be able to work on electric vehicles. While ICE vehicles have increasingly more advanced driver assistance systems, electric vehicles are truly packed with cutting-edge systems. Batteries make electric vehicles heavier than ICE vehicles of a similar size. That means that electric cars use more expensive, lighter and more durable materials to offset the weight of the battery. Replacing these materials is expensive.
Insurance and costsIn general, electric cars cost around 12% more to insure than ICE vehicles. Because electric vehicles are pricier to both buy and repair, insurers charge more for providing insurance cover. That said, fuel savings and tax benefits may more than make up for the extra cost.
- Taxes
A series of tax benefits have been introduced in Greece to support the transition to electric vehicles. The "Kinoume Ilektrika 3" scheme is also in operation. Learn more about it here.