Experts answer: will buying an electric car save money?
Electric vehicles (EVs) are rapidly gaining popularity in Lithuania. The growing number of EV owners shows that they are a convenient and efficient alternative to traditional vehicles.
Government incentives, lower running costs and a growing focus on environmental protection are also contributing to the attractiveness of EVs.
But will buying an electric car really save money? We answer!
State support
One of the key factors making the purchase of electric cars more accessible to a large part of the population is the financial support from the State.
Lithuania is providing significant funding for cleaner transport. Individuals purchasing a new electric car can apply for a lump sum of €5,000 , while legal entities can apply for a lump sum of €4,000, provided by the Environmental Project Management Agency (EPA). The payment is not only for brand new electric vehicles, but also for used vehicles.
The total funding for electric vehicle subsidies in Lithuania for the period 2022-2026 is as high as €50 million, of which €35 million for individuals and €15 million for companies.
This support is part of a wider strategy to reduce emissions. More than 2,500 people have benefited so far.
Lower operating costs
The initial cost of an electric car is often higher than buying a conventional internal combustion engine vehicle, but the long-term running costs are much lower.
One of the biggest advantages is fuel economy. Charging an electric car is much cheaper than regularly refuelling a petrol or diesel car.
Swedbank estimates that Lithuanian EV owners can save up to 70% on fuel costs compared to drivers who drive conventional cars every day. For example, the cost of a kilowatt-hour (kWh) of electricity in Lithuania ranges from €0.20 to €0.30 per ct., and the average electric car consumes about 15-20 kWh per 100 km. This means that driving 100 km in an electric car costs around €3-6.
In contrast, a petrol car with a fuel consumption of 7 litres per 100 km, at an average price of €1.80 per litre, would have a fuel consumption of around €12.60 to cover the same distance .
In addition, the maintenance costs of electric cars are considerably lower than those of conventional cars. Practical experience shows that, compared to conventional cars, EVs have a lower risk of mechanical breakdowns and therefore lower unplanned repair costs.
Experts estimate that EV maintenance costs can be up to 50% lower. This includes savings on oil changes, transmission repairs and exhaust system maintenance, which are common costs for petrol and diesel vehicles.
Attractive tax incentives
Owners of electric cars in Lithuania also benefit from a range of tax breaks, rebates and other financial incentives.
Electric cars are exempted from registration tax, which depends on CO2 emissions. For conventional vehicles, the tax can range from €100 to €500, depending on emissions . Another advantage is that owners of electric cars are exempt from the annual road tax, saving them on average between €60 and €120 per year .
Parking is another hot topic. Electric cars can be parked free of charge in designated spaces. This will save a lot of money over time, especially for frequent urban travel.
It is also worth noting that Vilnius, Kaunas and other cities are actively expanding their EV charging infrastructure, which will make it even more convenient to use EVs in the near future.
It's clear: thanks to state financial support, tax incentives and lower running costs, EVs are the perfect choice for those who want to commute more economically, travel in the city, or even for longer journeys across Lithuania.
The experience of many drivers shows that purchasing this alternative means of transport will save money in the long run, while at the same time reducing the negative impact on the environment.
