Costs and payback of an electric car: is it worth switching to an electric car?
Electric vehicles (EVs) are becoming increasingly popular, not only for environmental reasons but also for their economic advantages. Growing global concern about climate change and government incentives are giving more people pause for thought. Yes, thinking about the possibility of switching from traditional fuel-powered cars to electric vehicles. But many drivers are asking, does it really pay to run an electric car?
The initial cost of an electric car
One of the biggest challenges facing potential EV buyers is the initial price. The average price of a new electric car is often higher than that of a petrol or diesel car, although this trend is starting to change. In Lithuania, for example, the average price of a new electric car in 2024 ranges from €35,000 to €50,000, depending on model and equipment. Meanwhile, a petrol car in a similar class could cost between €25,000 and €35,000.
It is important to note that many countries, including Lithuania, offer subsidies and tax breaks for EV buyers. In Lithuania, for example, you can get a subsidy of up to €5,000 when buying a new electric car. This can significantly reduce the initial price.
Operating costs
One of the main advantages of an electric car is lower running costs. The cost of charging is considerably lower compared to petrol or diesel prices. The average cost of charging an electric car in Lithuania is around €0.10-0.15 per kWh, which means that it costs around €2 to €4 per 100 km. In comparison, a petrol or diesel car would cost around €7-10, depending on the price of fuel and the car's fuel consumption.
Maintenance costs
Electric cars are simpler to build than conventional cars, so maintenance costs are also lower. An electric car does not need regular oil changes, belts or spark plugs, and the braking system wears more slowly thanks to regenerative braking technology. The average maintenance costs of an electric car can be 20-30% lower than a petrol or diesel car.
Charging station infrastructure
The development of charging infrastructure in Lithuania and other countries is progressing rapidly. More and more companies and public institutions are installing charging stations, which increases the attractiveness of the electric car. However, the cost of using charging stations can vary depending on the location and the operator, so it is important to consider how often and where you will charge your electric car.
Distance travelled and payback
The payback of an electric car depends a lot on how many kilometres you drive per year. Studies show that the average payback period for an electric car is 3-5 years if you drive around 15,000-20,000 km per year. If your daily commute is shorter, the payback may take longer, but is still achievable due to lower running costs.
Battery life and replacement costs
Battery technology is improving rapidly and battery life is continuously increasing. Modern electric vehicle batteries can last between 8 and 15 years, depending on the conditions of use. Although battery replacement can cost between €5,000 and €10,000, it is usually only necessary after a dozen years, by which time the technology and prices are likely to have fallen even further.
Residual value
The residual value of an electric car is also an increasingly important factor. Recent data shows that electric cars are retaining their value better than before, especially popular models such as the Tesla or Nissan Leaf. However, as with any car, value depends on model, mileage and market demand.
Future prospects
The market for electric cars is growing rapidly, with forecasts suggesting that the share of electric cars in the global market could reach up to 30% in the next 10 years. New EV models, advances in technology and the falling cost of batteries are making EVs increasingly affordable. In addition, an increasing number of countries are planning to phase out the internal combustion engine, thus promoting the use of electric cars.
An electric car can be an excellent choice for those who want to reduce their costs in the long term and contribute to preserving the environment. However, it is important to assess your daily needs, charging possibilities and expected running costs before making a final decision. If you drive a lot of kilometres a year and have access to convenient charging facilities, an electric car can be a cost-effective solution.
