Perhaps you’re pondering the age-old question of how to save more money. But where to start? You want more bucket-list adventures with loved ones. You want to remodel your kitchen for cosier quality time at home. You want to do more than navigate your present: You want to save for your future.
Your plan for accelerating your savings might not include your vehicle. But it should. Switching to an EV can save you substantial money on fuel alone each year and thousands more over the lifetime of your car. Going electric isn’t just the right thing for our planet and humanity – it’s also one of the best things you can do for your wallet and goals.
Calculate how much money you can save by driving electric
Before taking the exciting leap of investing in an EV, it’s wise to calculate your baseline savings to see if this is right for your goals. The tool below calculates your fuel savings alone – so you’ll save even more with incentives for EVs, maintenance savings and more.
Move the toggles below to accurately capture information about your EV lifestyle.
How do electric cars save money?
Read on to learn more about how driving an EV will charge your savings rate.
1. Fuel savings
Petrol or diesel for your car are expensive. Did we also mention it’s just plain bad for human health, animals, the atmosphere – everything and everyone? Petrol and diesel prices are notoriously volatile, which makes budgeting even harder.
Give it up for electricity. Electricity is better for the planet and your wallet, with much less pollution and more stable pricing. One study found that by switching to an EV, the average EU driver will spend 80% less on electricity charging at home than on equivalent petrol fuel.
2. Maintenance and repair savings
EVs have additional benefits over petrol and diesel cars. In addition to less pollution and more energy efficiency, EVs require much less car maintenance than ICE (internal combustion engine) cars, adding up to significant savings over time. Studies estimate EV owners can expect to save 20-35% on maintenance over an EV’s lifetime compared with a petrol-guzzling vehicle.
Imagine what else you can do with that huge chunk of cash. Pay down home loans. Go on the trip of a lifetime. Remodel a bathroom. Save for retirement. The list is endless. But whatever you choose, it sure beats years of costly oil changes and spark plug replacements.
3. Savings from subsidies, tax deductions and other incentives
Currently, 20 EU member countries offer incentives to buy an EV. Keeping track of all the new tax incentives and rebates for EVs is overwhelming. It’s a great problem to have, but it’s essential to make a game plan so you can maximise your savings.
Here’s how you can save even more money by switching to an EV:
- Receive a purchase bonus of thousands for buying an EV.
Example: Receive up to €9,000 in Germany.
- Explore additional local EV incentives where you live, including parking.
Example: Different cities in Denmark offer free or discounted parking to EVs.
- Take advantage of EV and EV charging tax deductions.
Example: Belgian EV drivers can deduct 75% of the charging cost from their income taxes.
- EVs also may access low and zero-emission zone access, saving you money and time depending on where you live in Europe.
Example: Soon, only EVs will be able to drive in certain areas of Paris.
But what about the price of EVs?
You might wonder how EV prices affect your EV savings. While EVs can be more expensive than petrol vehicles, EV prices continue to decline rapidly. One study estimates price parity for EVs and fossil fuel cars in the EU as early as 2024. And many new EV makes and models with lower MSRPs, such as the Fiat500 and Nissan LEAF, continue to hit the market.
EVs win for the lowest total cost of ownership
Evaluated holistically, EVs beat fossil fuel vehicles hands down when it comes to the total cost of ownership (TCO). Fuel, maintenance, repair, tax incentives and rebate savings add up over the lifetime of an EV to save thousands of pounds, compared with a petrol or diesel vehicle. The cost savings of electric cars can’t be beat.
There’s no doubt about it. By choosing to drive better, you will also save better. And dare we say, live better?
