Main points
- Switching to an EV can save money despite higher insurance and upfront costs, especially with home charging.
- Public chargers are more expensive than charging at home, but options like Tesla Superchargers can lower these costs.
- Lower maintenance and energy costs make EVs a cost-effective alternative to gasoline cars, even when financing is taken into account.
Created with the help of AI. Quality guaranteed by Metro editors.
The number of people who choose to give up gasoline and switch to electric is increasing.
March saw a record number of new EVs registered in the UK, according to the Association of Motor Manufacturers and Traders, while trade in used EVs grew by almost 50% last year.
For most drivers, the decision to shift isn’t about going green—it’s about the bottom.
This week’s The Money Problem comes from Charlie, 42, a single mum living in Stonehouse, Gloucestershire.
With the cost of fuel now at eye-watering levelsshe wants to know if trading her 2020 petrol Nissan Qashqai for an EV on finance will save her money.
So, asked Charlie subway consumer champion Sarah Davidson to run the numbers.
The problem…
I’ve been stuck with manual cars all my driving life and have been pretty skeptical about electric drive.
I paid off the finance on my 2020 petrol Nissan Qashqai last year, and the plan was to keep it for at least another three or four years.
But the last few months have been an absolute shock. Petrol is now costing me literally hundreds of pounds a month to the point where I’m struggling to even afford school.
I’ve come to the conclusion that maybe I should just bite the bullet and go electric, but I’m not sure how to figure out if that will save me money.
I usually do about 15 to 20 miles a day, plus twice a week I do a 60 mile round trip. Occasionally, maybe three times a year, I will ride much longer distances of around 200 miles.
Is it worth trading in my car, currently worth around £12,500, and buying an electric vehicle?
The answer…
Great question and the right time to ask it. First, let’s look at what you’re spending today.
Based on your daily commute, longer twice-weekly trips, and occasional long-distance trips, you’re driving approximately 11,400 miles per year.
Your 2020 Qashqai petrol is likely to get around 40 miles to the gallon, so with average UK petrol prices currently around 157p per litre, your annual fuel bill is roughly £2,030.
Add in standard £200 road tax, around £500 for servicing and maintenance and around £550 for insurance, your total annual running cost is around £3,280.
Would you consider switching to an electric vehicle due to rising fuel prices?
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Yes, I think it’s a good idea.
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No, I prefer conventional vehicles.
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I’m not sure; I need more information.
Now, let’s look at the electric alternatives.
According to the Zapmap EV Charging Price Index, the average cost of using a standard public charger in, say, supermarket it’s 54p per kWh, while motorway fast chargers cost around 76p per kWh.
The cheapest way to drive an EV is by charging it at home on an off-peak overnight charge, which can cost as little as 8.5p per kilowatt-hour (kWh).
If you are able to talk to your landlord about a dedicated wall box, the governmentThe Home Electric Vehicle Charge Scheme offers a grant of up to £350 for installation in a rented property. This would reduce your charging cost per mile even further, to as little as 2.4p per mile with an off-peak overnight charge.
Even if this is not an option, you can still charge at home. A standard three-pin mains plug can charge an EV overnight with no installation at all. It’s slower than a wall box, delivering around 2.3kW instead of 7kW, but your daily mileage of around 17.5 miles would take just over two hours.
At the current Ofgem energy price rate of 24.5p per kWh, you would spend roughly 7p per mile charging the EV compared to 17.8p per mile for petrol.
You’ll still need public fast chargers for your three long-distance trips a year, but those 600 miles are a tiny fraction of your total mileage.
You’ll save too maintenance. EVs have fewer moving parts and data suggests servicing costs are around 30% lower – another saving.
However, there are other costs to consider.
More subway money problems
As of April 2025, it’s new and used EVs subject to standard rate of £200 of road tax.
Electric vehicle insurance is currently around 10% to 20% higher than petrol equivalents, which can add £30-£160 to your annual premium depending on the model.
It’s worth noting that from spring 2028, planned tax changes mean electric vehicle drivers will have to pay a charge of 3p per mile, while plug-in hybrid owners will pay 1.5p per mile.
You should also consider how well the model you choose will hold its value. Let’s look at three options…
Tesla Model 3 Standard Range Plus, 2021, £15,000
Tesla has a distinct advantage over other EVs – access to the Supercharger network, which averages around 31.5p per kWh, significantly reducing fast charging costs.
A hire purchase deal for £2,500 over four years at 8% APR, this would add around £60 a month to your outgoings.
Your total annual running cost would be approximately £2,700, which is almost £600 less per year than keeping your Qashqai.
Kia e-Niro 64kWh, 2021, £14,000
With your trading, you need a loan of £1,500. Your annual HP payments would be just £440.
Taking into account tolling (£1,745), insurance (£620), servicing and VED, your total annual cost would be approximately £3,215.
That’s remarkably close to your current petrol costs, coming in at just £130 more per year.
Nissan Leaf 40kWh, 2021, £9,000
Financially, this is a winner.
Because your Qashqai trade-in is worth £12,500, you can buy the Leaf outright and still have £3,500 cash on hand.
With zero finance payments, your total annual running cost (toll, road tax, insurance, servicing) drops to £2,737.
That means you’ll actually save around £300 a year compared to your petrol Qashqai, plus you’ll get a £3,500 cash injection.
So will you save money? The short answer is yes.
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Contact by sending email MetroLifestyleTeam@Metro.co.uk.
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