The Costs of Owning an Electric Vehicle in 2024

Are you driving past petrol stations and lamenting the state of fuel prices these days? It’s common in 2024 to see petrol and diesel prices hover around $2.20 per litre; and it’s unlikely that these will fall back to pre-pandemic levels any time soon.

 However, we do live in an interesting time for transitioning to electric vehicles (EVs). A primary reason people hesitate to buy an EV is the upfront cost. However, like any investment, it’s what happens afterward that makes the most financial sense. So, what are the costs of owning an electric vehicle in 2024, compared to an internal combustion engine (ICE) vehicle?

Energy costs or “fuel”

Looking at a comparison between two popular and similar cars, the Nissan Pulsar 1.8 ST Auto and the Nissan Leaf 59kWh 160kW Auto, assuming both drives about 15,000km per year with an average cost of fuel being $2.08/L it’s estimated you would save $1,376.98 per year on average, or about $114 per month if you used a mix of home and public charging.

Assuming the same variables in fuel and electricity, you would save $103.14 per month or $1,237.64 per year if you drove the Tesla Model 3 versus the Toyota Camry 2.5L Ascent Auto, one of the most popular ICE vehicles in Australia. However, this brings us to our next point – the upfront price differential. You can make your own comparisons here.

Costs upfront and overall

The total cost of ownership over five years for the 2023 Toyota Camry Ascent Auto and the 2023 Tesla Model 3 Standard Range is $40,456 vs $46,213, assuming you also have a 7kWh solar panel system installed in your home. That’s only a 14.2% difference between the two, considering the Tesla being over two-thirds more expensive than the Camry (67.1% – $59,631 vs $35,668.) Of course, this doesn’t consider incentives and tax breaks, which may be available in your state to improve the price and overall costs.

Maintenance

Since Battery EVs (BEVs) have fewer moving parts than a conventional ICE car, it’s estimated that BEV maintenance is 70% cheaper on average than comparable ice vehicles. If it costs, say $1,000 to service your vehicle each year, your BEV will cost around $300 each year. That’s another saving that definitely adds up.

Green car loans

Governments are incentivising lenders to encourage the take up of low emissions vehicles through Green or low-emissions car loans. These loans vary from bank to bank or lender to lender, but usually involve a lifetime discount on interest rates, fees, or a combination of the two to push down the overall cost of EV ownership.

If you’re unsure your bank offers green car loans, you should learn about loans online and approach a specialist car loan broker to find which lenders and institutions may be offering Green Car Loans. It could further drive down the cost of ownership alongside fuel, insurance, registration, and other running costs. You could be saving a lot of money and helping the environment!