What is Total Cost of Ownership (TCO)?

Total Cost of Ownership is the complete cost of owning a vehicle over its lifetime, not just the purchase price. It includes fuel, charging, maintenance, insurance, taxes, and depreciation. TCO gives the most accurate picture of how a car will impact your finances.

Why are EV maintenance costs lower?

EVs have far fewer moving parts. There are no oil changes, spark plugs, timing belts, or complex exhaust systems to service. Regenerative braking also reduces wear on brake pads and discs, leading to significant savings over several years.

How much does EV insurance cost compared to petrol cars?

In 2025, EV insurance can still be slightly higher than for an equivalent petrol car, often due to specialist repair costs. However, as more technicians are trained and parts become more common, this price difference is narrowing. Some providers now offer competitive, EV-specific policies.

Chart comparing EV and petrol car ownership costs

Pillar Guide

EV Ownership Costs 2025: The Complete Guide to Total Cost of Ownership (TCO)

September 29, 2025

5 min read

EVs have a higher upfront cost but are 50-70% cheaper to run per mile due to lower fuel and maintenance expenses. Over an 8-year period, the total cost of ownership for an EV is often lower than a comparable petrol car, especially when factoring in tax incentives and smart home charging tariffs.

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EV Ownership Costs 2025: The Complete Guide to Total Cost of Ownership (TCO)

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