Electric vs Petrol: The True Cost of Car Finance in 2025
Should you finance an electric car or stick with petrol? Let's compare the real costs.
Purchase Price Comparison
Electric Vehicle (e.g., MG4)
List price: £26,000Government grant: £0 (ended in 2022)Deposit (10%): £2,600Finance needed: £23,400Petrol Vehicle (e.g., VW Golf 1.5 TSI)
List price: £24,000Deposit (10%): £2,400Finance needed: £21,600**Initial advantage: Petrol** (£1,800 less to finance)
Monthly Finance Costs
Electric (48 months at 6.9% APR)
Monthly payment: £555Total repayable: £29,240Total interest: £3,240Petrol (48 months at 7.9% APR)
Monthly payment: £520Total repayable: £26,560Total interest: £2,560**Monthly advantage: Petrol** (£35/month less)
Running Costs
Fuel/Charging
Electric:
Home charging: 7p/kWh = £2.10 per 100 milesAnnual (10,000 miles): £210Petrol:
Fuel cost: £1.45/litre, 45mpg = £14.50 per 100 milesAnnual (10,000 miles): £1,450Annual saving with electric: £1,240
Servicing and Maintenance
Electric:
No oil changesFewer moving partsLonger brake lifeAnnual cost: £150-£200Petrol:
Regular oil changesMore components to maintainAnnual cost: £300-£400Annual saving with electric: £150-£200
Road Tax
Electric:
Currently: £0From April 2025: £20/yearPetrol:
Standard rate: £190/yearAnnual saving with electric: £170
Insurance
Electric:
Typically 10-15% higherAverage: £650/yearPetrol:
Average: £580/yearAnnual cost increase with electric: £70
Total Cost of Ownership (4 years)
Electric Vehicle
Finance total: £29,240Charging (4 years): £840Servicing (4 years): £700Road tax (4 years): £60Insurance (4 years): £2,600**Grand total: £33,440**Petrol Vehicle
Finance total: £26,560Fuel (4 years): £5,800Servicing (4 years): £1,400Road tax (4 years): £760Insurance (4 years): £2,320**Grand total: £36,840**Total 4-year saving with electric: £3,400
Additional Benefits of Electric
Financial
Workplace charging schemesLower company car tax (2%)Grants for home chargersSome free public chargingPractical
Instant torque and accelerationQuieter driving experienceSimplified maintenanceFuture-proof technologyEnvironmental
Zero tailpipe emissionsLower carbon footprintReduced air pollutionSupporting renewable energyIs Electric Right for You?
Choose electric if:
You have home charging availableYour daily mileage is under 200 milesYou want lower running costsYou value environmental benefitsYou can afford higher initial paymentsChoose petrol if:
You regularly drive long distancesYou can't charge at homeYou need maximum flexibilityYour budget is very tight initiallyYou're not ready for EV technologyWHOOSH! Finance for Electric Cars
We make electric car finance easy:
Competitive rates for EVsSame 60-second applicationSupport with all makes and modelsHelp understanding costs and benefitsReady to go electric? Get your quote today!
