Is an electric car truly cheaper than a petrol car? We break down fuel costs, maintenance, resale value, and long-term savings to find the real winner.
Introduction: The Cost Battle Between Petrol and Electric Cars
With rising fuel prices and governments pushing for greener alternatives, many people are considering switching to electric vehicles (EVs). But are electric cars really cheaper in the long run, or do petrol cars still offer better value?
While EVs promise lower fuel costs and less maintenance, their higher upfront price and battery replacements raise concerns. On the other hand, petrol cars remain widely available, but their running costs are unpredictable due to fluctuating fuel prices.
So, which one actually saves you more money? Let’s break it down.
1. Upfront Cost: Petrol vs. Electric
One of the biggest differences between petrol and electric cars is the initial price.
- Petrol Cars: Generally cheaper to buy, with a wide range of options from budget to luxury models.
- Electric Cars: More expensive due to battery technology, but government incentives can lower the cost.
Example Price Comparison (2025 Models)
- Petrol Car (Toyota Corolla): $25,000
- Electric Car (Tesla Model 3): $40,000 (before incentives)
At first glance, petrol cars seem more budget-friendly. However, the real cost differences appear after purchase.
2. Running Costs: Fuel vs. Electricity
Fuel Cost Per Year
Petrol prices fluctuate, while electricity rates remain relatively stable. Here’s a rough breakdown:
Petrol Car
- Average fuel economy: 30 miles per gallon (MPG)
- Annual mileage: 12,000 miles
- Petrol price: $4 per gallon
- Total yearly fuel cost: $1,600
Electric Car
- Average efficiency: 3.5 miles per kWh
- Annual mileage: 12,000 miles
- Electricity price: $0.15 per kWh
- Total yearly charging cost: $514
Winner: Electric cars save over $1,000 per year on fuel.
3. Maintenance and Repairs
Electric cars have fewer moving parts, which means fewer things can go wrong.
Petrol Car Maintenance Costs
- Oil changes: $100 per service (twice a year)
- Brake replacements: $400 (every 50,000 miles)
- Engine repairs and tune-ups: Varies, but expensive over time
Electric Car Maintenance Costs
- No oil changes
- Regenerative braking reduces brake wear
- Battery and motor require little servicing
Winner: EVs save an estimated $500–$1,000 per year on maintenance.
4. Battery Replacement vs. Engine Wear
One major concern with EVs is battery lifespan. While petrol engines wear out gradually, EV batteries degrade over time.
- EV batteries last: 8–15 years (150,000–250,000 miles)
- Replacement cost: $5,000–$15,000 (though costs are dropping)
- Petrol engines last: 200,000+ miles with proper maintenance
While EVs require a major battery replacement at some point, petrol engines also require expensive repairs in their later years.
Winner: Depends on ownership length. Long-term EV owners may face battery replacement costs, but petrol cars require engine repairs and fuel expenses.
5. Resale Value: Which Holds Value Better?
Car depreciation varies based on demand, brand, and condition.
- Petrol Cars: Lose 50% of their value in 5 years
- Electric Cars: Historically, EVs depreciated faster, but as demand grows, resale values are improving
Example (After 5 Years):
- Petrol Car (Toyota Corolla): Worth $12,500
- Electric Car (Tesla Model 3): Worth $24,000
Winner: EVs now have stronger resale value, especially premium models.
6. Government Incentives & Tax Benefits
Many governments offer tax credits, rebates, and free charging to encourage EV adoption.
- Example:
- US Federal EV Tax Credit: Up to $7,500
- State Incentives: Additional discounts on EVs and home charging stations
- Lower Road Taxes: Many countries charge lower road taxes on EVs
Winner: EVs gain major savings through government incentives.
7. Home Charging vs. Public Charging
One hidden cost of EV ownership is charging setup.
- Home Charging Installation: $500–$2,000 (one-time cost)
- Public Fast Charging: More expensive than home charging
- Petrol Refueling: More convenient but costly over time
If you own a home and can charge overnight, EVs are much cheaper. However, if you rely on public fast chargers, costs can add up.
Winner: Home charging makes EVs more economical.
Final Verdict: Which One Saves More Money?
If we calculate savings over 5 years, assuming 12,000 miles driven per year:
| Category | Petrol Car (Toyota Corolla) | Electric Car (Tesla Model 3) |
|---|---|---|
| Purchase Price | $25,000 | $40,000 |
| Fuel/Electricity Cost | $8,000 | $2,570 |
| Maintenance & Repairs | $5,000 | $2,000 |
| Tax Incentives | $0 | -$7,500 |
| Resale Value (After 5 Years) | $12,500 | $24,000 |
| Total 5-Year Cost | $25,500 | $8,070 |
The Winner: Electric Cars Save More Money Over Time
Despite the higher initial cost, EVs recover the difference through fuel savings, lower maintenance, tax incentives, and higher resale value.
However, petrol cars still offer convenience, long-range flexibility, and lower upfront costs, making them ideal for those not ready for an EV.
Should You Switch? Here’s How to Decide:
- Choose an EV if: You drive a lot, have access to home charging, and plan to keep the car for a long time.
- Choose a petrol car if: You need an affordable upfront cost, frequently drive long distances, or don’t have charging access.
Final Thought: The Future Is Electric, but Timing Matters
As EV prices drop and charging infrastructure improves, electric cars will continue to dominate in terms of savings. But for now, whether an EV or a petrol car is better depends on your budget, lifestyle, and driving needs.
