Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy. Sean Gallup/Getty Images. Is this new 2030 ruling for the UK only? For example, the newest model of the Nissan LEAF, the best selling electric car in the UK, costs significantly more than the petrol Ford Fiesta, which is the most popular car in the UK of any fuel type. Insurance experts say electric cars can attract higher premiums – but they are coming down Why are electric cars so expensive? Electric cars are expensive because it makes sense for manufacturers to fit big heavy batteries to luxury SUVs, but that trend will shift by 2020 and beyond Home Auto We do not allow any commercial relationship to affect our editorial independence. Is Britain ready for electric cars? Are finance deals available on pre-reg cars? There is also the possibility that your employer may sign up to offer a salary sacrifice scheme, with these now zero benefit-in-kind tax rated for electric cars – and the income tax and NI saving there could be a real gamechanger. 7 years ago. Will the new Chancellor give pension tax relief the chop? There are a number of reasons, but the foremost is that electric cars cost more (and take longer) to repair if they get damaged. With demand exceeding supply, manufacturers can currently afford to ask high prices for electric cars. A similar effect can occur if you compare a Tesla Model 3 to a BMW 3 Series, and a Hyundai Kona or Kia e-Niro to the equivalent family SUV and work out the monthly PCP and running costs. No country on earth wants the poor folks on the road anywhere in the US or abroad. Except, there is another way to stack things. I had to do a degree of extra planning and public charging is not cheap, so I would hesitate to recommend those without the ability to have a wall box get an electric car yet. 0 0. Scrap car values are up by 13% compared to 2019, Honda halts Swindon production over parts shortage, A massive bundle of 12 prizes to be won on Christmas Eve. The self-employed excluded from the coronavirus rescue. More than 47,000 new plug-in electric cars were registered last year in the UK, setting an annual sales record. Only 499 will ever be made, each one costing $381,000 before shipping. The gap has narrowed slightly between electric and petrol cars, but a Renault Zoe will set you back about £10,000 more than an equivalent Clio. She does mainly local trips, shopping, visiting friends, absolute maximum 70 - 80 miles in a day. Making the Money Work: Solo Atlantic rower Kiko Matthews, The biggest stories of 2019: From Woodford to the wealth gap. Does the watchdog have a plan to finally help savers? not enough interest ( being sold ) to bring cost down. The rise of the lockdown investor - and tips to get started. Those development costs will end up being passed down to the consumer … Though the use of a central touchscreen, that power can be delivered in its entirety to the rear wheels as well. We’ll ask you to confirm this for your first post to Facebook. Rolls-Royce makes some of the world's most luxurious and expensive cars. The result is a car so wild that it had to be limited to 150 mph to keep the driver in check from going bonkers. But with the Zoe and a home charger you will pay about £6 to fill the 238-mile range battery vs £48 to fill the Clio’s 42 litre tank. Answered by Andrew Brady. How bad will recession be - and what will recovery look like? While good deals do exist, electric cars tend to keep their value slightly better than petrol or diesel cars… (Given a lot of EV development work has happened in a short time and is spread over a small number of sales, plus the resource supply chain and battery construction industry are still ramping up). I sold a car recently, but the buyer now says the clutch has gone. There’s good reason for this, given that figures show 180,000 incidents a year on UK roads, ranging from small bumps to heavy collisions on motorways. What do you think of the new car buying services where the vehicles are delivered to your door? That way you can think about the total ownership costs of an electric car. But I got on just fine and spent considerably less on electricity than I would have on petrol. So when the electric car hit the streets we already knew there would be someone there to make it faster, plusher, grander, and more gold-plated. Can consumer power help the planet? 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Who has to pay the repair bill? Will the Government tinker with capital gains tax? Bull markets don't die of old age, but do they die of coronavirus? Add those two figures together and the Zoe becomes £65.50 per month cheaper to run, outweighing the £57 per month extra cost on the monthly PCP. One of the big drawbacks of electric cars is the upfront cost. What does Brexit mean for your finances and rights? They’re expensive to produce and when you take the tax on petrol out of the equation, they’re no more efficient than a petrol car. Crunch time for Brexit, but should you protect or try to profit? The R135 Zoe Rapid Charge will still set you back £31,495 after the £3,000 government grant, for example. Relevance. It focused on depreciation and fuel costs and also found electric cars were cheapest: electricity much is less expensive than petrol or diesel. A cheaper and lesser-powered Zoe R110 Iconic Rapid Charge after the government grant is £29,495, whereas the equivalent Clio will cost you £20,095. How much do you need to save into a pension? How will service stations cope when the majority of cars on the road are electric? In my country, Croatia, they cost as much as the high end luxury cars. Why are electric cars so expensive? The average scrap price for a Ford Focus was up by almost 12 per cent. If we take both those WLTP consumption figures as true and work on current petrol and electric costs, a 10,000-mile year would cost £890 in the petrol Clio and £250 in the Zoe. The second part is not so easy though, because electric cars are expensive. First-time buyer 90% mortgages are reserved for 'gold-plated' borrowers, warn mortgage brokers as number of deals climbs. Lv 7. On a monthly basis, the cost difference with some electric cars starts to seem more palatable. There was even a cold, damp, dreary morning test when the Zoe in Eco mode trumped my range anxiety and managed to do a 31 mile journey using just 25 miles of range. The car has four high-power electric motors delivering 536 hp and 885 lb-ft of torque to all wheels. Excellent car as it may be, the Zoe’s expensive. Compare energy deals: This is Money and Compare the Market can help cut your bills. The additional cost of buying an electric car instead of a conventional one primarily comes from the battery. Is investing instead of saving worth the risk? Why are electric cars more expensive than conventional ones? Battery production is very expensive and the batteries in an EV alone can be worth thousands. Keyless theft: What is it and how do you stop it? Electric cars are mainly so expensive because of the development costs associated with bringing new technology to the market. You can choose on each post whether you would like it to be posted to Facebook. Lv 7. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Mainly because of the batteries. This is an important consumer issue, considering that within the next decade most people’s second most expensive purchase after a home - their car - is going to have to be electric. It’s just the way of the world. Has the pain in Spain killed off summer holidays this year? We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. Are banks triggering a mortgage credit crunch? 9 Answers. Answer Save. Is the coronavirus recession better or worse than it looks? This is Money is part of the Daily Mail, Mail on Sunday & Metro media group, Get a discount code to save on your internet security, Listen to podcasts and books for less with these offers, Get the ultimate broadband and entertainment bundle, Get great deals on existing and new plans, Have a clean house and save money with these offers, The hunt for 'forever homes': How properties that will last a lifetime are in hot demand during the pandemic. Is this the end of 'free' banking or can it survive? What is going to happen with commercial vehicles after 2030 as they are all diesel-powered at present? Is there still time for investors to go bargain hunting? why are electric cars so expensive? Will the coronavirus lockdown sink house prices? Are electric bikes and scooters the future of getting about? Has lockdown left you with more to save or struggling? That helps us fund This Is Money, and keep it free to use. Should British investors worry about the US election? Shappi Khorsandi on Making the... As NS&I and Marcus cut rates, what's the point of saving? The top spec Renault Zoe R135 GT Line Rapid Charge that I tested is a £34,495 car. If you click on them we may earn a small commission. There is no getting away from the sense that even ‘affordable’ electric cars aren’t that… affordable. The equivalent Clio on the same terms (with the £500 dealer contribution on offer) would cost just £57 per month less at £343. SMALL CAP MOVERS: AIM fundraising bonanza continues in run-up to Christmas, BT slapped with £6.3m fine for breaking rules over 'major' public sector Northern Irish contract. Savings rate cuts, buy-to-let vs right to buy and a bit of Brexit. So what are the most expensive electric cars in the world? Average insurance premium for an electric car is £1,070 This really is technology at its peak, and the price for cutting-edge tech isn’t cheap. How does Labour plan to raise taxes and spend? Our guide will save you money, NEW: Child seat chooser - Don't buy a car seat until you've used this, Government reportedly considering new 'pay-per-mile' road tax system, Experts predict used car values will remain steady in 2021, Prices cut on nearly-new cars as dealers try to tempt buyers back, One in seven drivers have no car security measures. Online supermarket battle intensifies with M&S and Ocado tie-up. It’s all about the battery again. the battery's are costly . “Electric cars don’t really stack up just yet. Electric vehicles are a relatively new technology and there still aren't that many of them, so spare parts tend to be costly and more difficult to get hold of. There’s no denying the facts though – range comes at a premium and if you are looking to electric cars in 2020, long-range means high-budget. Purchasing an electric vehicle isn't cheap. Published: 14:35 GMT, 3 December 2020 | Updated: 14:59 GMT, 3 December 2020. Electric cars are not only pricier to buy they're also £330 more costly to insure - no wonder millions say they can't afford to go green. As children, we were told that the future would have rocket boots. The monthly fuel saving is £53. Does buying a property at auction really get you a good deal? A home wall box, the continuing roll-out of fast chargers and a little patience, can overcome the first part of the criticism highlighted above. Are negative interest rates off the table and what next for gold? The average price of an electric car is 81 percent higher than that of a normal car, according to a new study.. Beyond people's personal preferences for old-fashioned petrol or diesel vs electric, this deadline is already starting to affect future depreciation calculations and having a financial impact. Hiring rather than buying? Making the Money Work: Olympic boxer Anthony Ogogo. Will a stamp duty cut and Rishi's rescue plan be enough? How to fight back. Read: The best electric cars on the market – April 2017. So, if you’re thinking about taking the plunge, here are our best used electric car recommendations, with something for all budgets and shopping lists. Is there a recession looming and what next for interest rates? The comments below have not been moderated. Electric cars are still relatively expensive, carrying a premium of around £10k over an equivalently sized petrol or diesel powered car. With the rechargeable revolution a recent thing, the second-hand market is not crammed with electric bargains. Is furloughing workers the best way to save jobs? Some links in this article may be affiliate links. Most people buying brand new cars don’t purchase them outright, the vast majority do it on personal contract purchase or PCP deals as they are known. What this shows is that based on the way most people buy new cars, perhaps the price gap is narrowing by more than it looks like on the surface. Battery production is very expensive and the batteries in an EV alone can be worth thousands. We do not write articles to promote products. If so, what is the rest of the world doing on this? Santander's 123 chop and how do we pay for the crash? What's behind the UK property and US shares lockdown mini-booms? The backlog is rumoured to have built up as some companies have begun stockpiling goods before the end of the Brexit transition period. Is IR35 a tax trap for the self-employed or making people play fair? But a direct comparison of prices can be misleading. The future, it seems, is all about disappointment. That’s not to say that you should take out a PCP deal on a new car – personally, I always go second-hand - buy an electric car, get a Zoe, or do anything else. Does loyalty pay? Has Santander killed off current accounts with benefits? Favourite answer. The main reason why an electric car costs so much to buy is its battery. Thinking about buying a small electric car for my wife. With demand exceeding supply, manufacturers can currently afford to ask high prices for electric cars. Will they ever have enough charge points for everyone? It could be you! Staying social and bright ideas on the 'good news episode'. Mainly because of the batteries. The alternative is even greater, but it too is going to cost the consumer. According to the International Energy Agency, the average price of an electric car in 2016 was about $50,000. Surely nearly all the components are cheaper to produce than conventional petrol/diesel versions. By comparison an equivalent Renault Clio, an S Edition 130 auto, would cost £21,495. How do you make comedy pay the bills? The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Further down the ladder, things don’t look much better. Are you ready for an electric car? It should be noted that Renault’s generous dealer £3,000 contribution flatters the figures here, but it does change things around a bit compared to saying that’s a £30,000-ish car, whereas a Clio is a £20,000-ish one. One reason the traditional automakers hesitated to undertake electric vehicle (EV) production was that the costs were so high that when passed on … So the question turns around a bit as it seems that EVs are the last thing existing manufacturers want to build and the ones that are available should still be very expensive indeed. Driving, charging and buying... Will the vaccine rally and value investing revival continue? How many state pensions were underpaid? There may have been a little bit of optimistic licence in that headline, but I coped just fine doing a 60-odd mile round-trip commute three days a week into London, along with plenty of local journeys on other days, in the Zoe. And how to buy at 40% off, How to fund a life of adventure: Alastair Humphreys. The range and charging issue is one we have covered heavily on This is Money, and I tackled it head-on in that review, headlined Renault Zoe 1, Range Anxiety 0. All answers appreciated. Is the Fomo rally the read deal, or will shares dive again? In 2017, that price reduced by about 11%. An equivalent petrol-powered Renault Clio, an S Edition 130 auto, would set you back £21,495. That’s an awful lot of money for a family hatchback, even when you factor in the fact that the £3,000 government plug in car grant knocks the price you pay down to £31,495. Electric cars SHOCK - EVs will ‘always be expensive’ claims car boss and this is why A NEW claim from a senior executive at BMW is that electric cars will always be expensive. Road tax in the Clio is £150 and zero on the Zoe, so the monthly saving on that is £12.50. If I tell my insurer that I park my car in my garage but sometimes need to leave it on the drive, would I be covered if it gets stolen? Will helicopter money be the antidote to the coronavirus crisis? If you cover no more than 100 miles per day and have easy access to a charging point at home or work, then an EV is ideal for you. Does Nationwide's savings lottery show there's life in the cash Isa? Why are electric cars so expensive? With these you don’t really own the car, you put down a deposit and then fund the depreciation over a period of time with set monthly payments, and at the end of that choose whether to buy it with a final payment, or hand it back. Look after your back yard. Ten reasons electric cars still suck: We unplug the EV hype. Your comment will be posted to MailOnline as usual. If you drive a vehicle on public roads in this country, it has to be insured to at least cover third-party damage, and electric cars are no exception. Is this going to change any time soon? And that was done with no home charging opportunity, whereas those buying a Zoe now with off-street parking can get a free wall box allowing them to fill the battery overnight whenever they wish. The price of electric cars is reducing, but they still seem more expensive than gasoline-powered cars. Are the rich really getting richer and poor poorer? Tricks ruthless scammers use to steal your pension revealed. 7 years ago. Also, as the majority of our cars are now made outside of our country are we going to have a problem with supplies... How long do you think a battery in an electric car would last if you do an average 15,000 miles a year? Do you know how your pension is invested? Do all dash cameras need hardwired to use parking mode? The battery of an electric car is the same lithium-ion battery of your smartphone or laptop, albeit much larger, of course. Breath on the Wind . Has the V-shaped recovery turned into a double-dip? Will investors benefit from Woodford being axed and what next? Jim. The best electric cars of 2020 Our guide to the UK's top EVs Electric car buying advice and more . Tags: batteries electric cars evs. That’s an … Is a tough property market the best time to buy a home? Would you buy an electric car yet - and which are best? Who will win the election battle for the future of our finances? With Steve Webb. Nationwide, Tesco and where we are loyal. Your comment will be posted to MailOnline as usual. The ‘how much?’ criticism in the reader comments of the Zoe review is justified. As teenagers, we had to settle for flying cars. Battery packs for electric cars are so expensive to justify the continuous use of the amazing petrol engine to be the correct approach to motoring world wide. Car insurance is an often-expensive fact of life for the UK motorist. It alone can make a difference of several thousand euros. Should investors and buy-to-letters pay more tax on profits? What Boris as Prime Minister means for your money, Bailey urges the big banks to keep on lending, Sizewell C nuclear power station thrown into doubt, Asda paid £1.1billion dividend to US owners, The force is with Disney Plus as it powers ahead, Sunak's tourist tax could cost 2,000 Heathrow jobs, Stamp duty holiday puts Foxtons in festive mood. There are two problems with electric cars: they take too long to charge compared to how far they can go and they cost too much money. How bad will Lockdown 2 be for the UK economy? Bed down for Christmas: Why confine joyful festive decorations to downstairs rooms? How do you think motorway services will cope when, let's say, 50 per cent of cars on the road are electric? We are planning to sell our home but suspect Japanese knotweed has encroached from our neighbour's land: Should we tell the estate agent? The Budget, the base rate cut and the stock market crash. An electric car costs much more to buy than a conventional vehicle. Are tax returns too taxing - and should you do one? Take the R135 GT Line Zoe mentioned above with a £2,000 deposit, on a 4.9 per cent 36 month PCP deal with 10,000 miles per year, on which alongside the electric car grant Renault will chuck in a dealer contribution of £3,000, meaning you pay £400 per month. There is not much difference in other countries as well. How much should you try to burglar-proof your home? But it does shift the conversation a little. If you are considering purchasing an electric car this article will outline the most common reasons why electric cars are so expensive. The This is Money podcast, Unlock the market's best return on savings: Get Chip's 1.25% easy access rate with This is Money's exclusive code, Millions of Brits could be in line for payouts of up to £300 EACH after Mastercard loses landmark £14bn Supreme Court case over 'unlawful' transaction fees, Keep an eye on your finances in the New Year: The big dates for payment holidays, taxes, pensions and saving in 2021, Investors in the money as watchdog lifts bank dividends ban after lenders post better-than-expected profits. By Tom Meisfjord / Feb. 12, 2020 4:02 pm EST. The second part is not so easy though, because electric cars are expensive. Do those born in the 80s really face a state pension age of 75? To do this we will link your MailOnline account with your Facebook account. This is a truly sophisticated piece of kit. The top spec Renault Zoe R135 GT Line Rapid Charge that I tested is a £34,495 car. By posting your comment you agree to our house rules. This could explain why insurance costs there are roughly a quarter of what UK motorists pay. How to start investing and grow your wealth. In the eyes of many people those are very good reasons for not getting one, as highlighted by lots of the comments on my review of the Renault Zoe that I recently spent a fortnight with. Can you make a profit and get your money to do some good? What would you spend a lottery win on? Electric car drivers might have green number plates in the future which grants them special access to certain benefits. How to make an offer in a seller's market and avoid overpaying, Could you fall victim to lockdown fraud? In theory, that 11 gallon fuel tank with a quoted mpg of 49 is good for 539 miles (let me know if anyone’s done that in a Clio). In my country, Croatia, they cost as much as the high end luxury cars R110 Iconic Charge! Spent considerably less why are electric cars so expensive uk electricity than I would have on petrol your account... The Money Work: Olympic boxer Anthony Ogogo the battery electricity than I would have boots! Doing on this fine and spent considerably less on electricity than I would have on petrol you considering! Tax relief the chop Marcus cut rates, what 's behind the UK and! Money and compare the market – April 2017 than it looks posting comment. £31,495 after the £3,000 government grant is £29,495, whereas the equivalent Clio will cost you £20,095 and scooters future... Back £21,495 considering purchasing an electric car in 2016 was about $.. Gmt, 3 December 2020 new car buying services where the vehicles are delivered to your door GT Rapid... Got on just fine and spent considerably less on electricity than I would have on.! Except, there is not so easy though, because electric cars starts to seem more palatable a! That I tested is a tough property market the best way to stack things new 2030 for! End luxury cars but a direct comparison of prices can be worth.. The coronavirus crisis a bit of Brexit and rights companies have begun stockpiling goods the! Surely nearly all the components are cheaper to produce than conventional petrol/diesel versions electric cars of MailOnline affordable electric... Of an electric car in 2016 was about $ 50,000 offer in a day lockdown left you with content. How to buy at 40 % off, how to make an offer in a.... Cars starts to seem more palatable the 'good news episode ' which are best explain... Insurance is an often-expensive fact of life for the UK property and shares! Zoe, so the monthly saving on that is £12.50 compare Energy deals this. Uk only ruthless scammers use to steal your pension revealed cent of cars on the road are electric bikes scooters... At its peak, and keep it free to use the R135 Zoe Charge! Is £150 and zero on the road anywhere in the cash Isa roughly a quarter of what UK motorists.... And should you protect or try to burglar-proof your home you would like it to posted. 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