Electric vs petrol car: which will you choose?

Electric vs petrol car: which will you choose?

Electric vs petrol car: which will you choose?

Whether you’re looking for your first car or just thinking ahead, a big decision awaits – should you choose petrol, or go electric? As with most car-buying decisions, this is a personal choice, based on preferences, affordability and location. But with legislation changing regularly, and ever-pressing environmental factors to think about, it’s no surprise that motorists have to weigh up their options carefully. In this helpful guide, we break down the electric vs petrol debate.

Disclaimer:

This article is not specific to the terms and conditions of your finance agreement with Oodle. If you have any questions or need support with your Oodle finance, please visit our Help Centre or contact our support team.

Disclaimer:

This article is not specific to the terms and conditions of your finance agreement with Oodle. If you have any questions or need support with your Oodle finance, please visit our Help Centre or contact our support team.

Disclaimer:

This article is not specific to the terms and conditions of your finance agreement with Oodle. If you have any questions or need support with your Oodle finance, please visit our Help Centre or contact our support team.

What is an electric car?

An electric car (EV) is powered by a battery rather than by a traditional combustion engine. An electric motor, fed by a battery, powers the wheels. EVs are usually automatic and make virtually no noise (just a gentle purr). Instead of filling up at a service station, you plug it in at a charging point.

There are several different kinds of EV. Fully electric vehicles are called battery electric vehicles, or BEVs. There are also plug-in hybrid EVs (PHEVs), hybrid EVs (HEVs) and mild hybrids. You can read more about these different kinds of EVs in our guide to electric cars on finance.

What is a petrol car?

A petrol car is powered by an internal combustion engine (ICE) and sends power to its wheels through the gearbox, which allows for different speeds and gear changes. The petrol is converted into energy that powers the car; the car’s range is controlled by the gearbox. Petrol cars can be manual or automatic.

Advantages of electric cars

Advantages of electric cars

Advantages of electric cars

  • As it stands, all new cars and vans must be electric by 2030 – meaning you won’t be able to buy a new traditional combustion engine car from 2030 onwards.

  • EVs are more efficient than petrol vehicles – some models (the Tesla Model 3 for example) convert 60-80% of energy into motion, compared to 20-35% for petrol cars.

  • BEVs produce zero CO2 emissions.

  • Quieter and smoother to drive.

  • Running costs are significantly cheaper.

Disadvantages of electric cars

  • There’s no getting away from it – brand new electric cars are still much more expensive to buy than new petrol cars. While there are relatively cheap EVs on the market – such as the Dacia Spring and the dinky Citroen Ami – luxury EV models skew the average. Until the price gap closes, larger, higher-end EVs will be out of many drivers’ budgets.

  • Electric infrastructure still has a way to go before it can rival the convenience of traditionally fuelled cars.

  • Range (the total distance an EV can travel on a single charge) is lower than the distance most petrol cars can travel before having to refuel.

  • Charging takes longer than the time it takes to refuel a petrol car.

Advantages of petrol cars

  • No range anxiety – i.e. no need to worry about running out of charge before you can reach a charge point.

  • Much quicker to refuel.

  • Available to buy on a lower budget.

  • Greater choice of vehicles.

Disadvantages of petrol cars

  • Fluctuating fuel prices.

  • Greater CO2 emissions.

  • Charges for driving in Ultra Low Emission Zones (ULEZ) and higher parking charges.

  • Higher running and maintenance costs – EVs have fewer moving parts so are usually cheaper to maintain.

Cost comparisons of electric cars vs petrol

Cost comparisons of electric cars vs petrol

Cost comparisons of electric cars vs petrol

For many people, the initial higher cost of an EV is enough to rule them out of the running. But long term, an EV could actually end up costing you less.

Here’s a quick look at the comparative price differences between a small petrol car and an entry-level BEV in the UK:

Category

Petrol car

Electric car

Average upfront cost (new)

£14,000-25,000 new

£20,000-30,000

Fuel (per year)*

Around £1,150

Around £190 (charging at home during off-peak hours only)

Road tax (assuming CO2 emissions band 111-130g/km)**

£440 first year, £195 (standard rate) per year thereafter

£10 first year, standard rate thereafter

Maintenance

Higher (oil, engine)

Lower (fewer parts), up to 70% cheaper

*These calculations are based on typical mid-2025 fuel and electricity price averages (£1.50 per litre of petrol; off-peak electricity cost of 10p per kWh), an average fuel economy of 45 MPG/4 miles per kWh and an annual mileage of 7,500 miles.

**Depending on which CO2 emissions band your car falls into you will pay more or less than this during the car’s first year of registration.

Over a five-year period, you are likely to spend much less on an electric car than a petrol car, even if it costs more to buy upfront, making it a cost-effective choice.

Initial costs

Because of the high cost of the battery and the manufacturing processes involved in producing EVs, generally they are more expensive to buy than petrol or diesel cars. However, as demand grows, prices are starting to drop.

Fuel and running costs

Although the price tag of a petrol car is often smaller than that of an EV, over time the money you will spend on fuel and maintenance will shrink this initial saving.

Example: if you charge your EV at home using off-peak rates, you could save a lot of money a year on fuel. New research suggests that drivers of petrol cars can expect to pay several hundred pounds more than EV drivers on fuel costs.

Many supermarkets, shopping and leisure centres will let you charge your EV for free while you use their facilities, and a growing number of workplace car parks allow you to charge your vehicle during the working day, often free of charge.

Find free charging points near you with ZapMap.

As well as fuel savings, EVs are also cheaper to maintain than petrol cars. This is because they contain fewer moving parts and no oily bits. In fact, with an EV you could save somewhere between £600 and £1,200 per year on servicing, maintenance and repair costs.

Read more about electric car running costs with our handy guide.

Road tax

If you drive a car in the UK, you must pay road tax. The amount you will pay is calculated according to emission levels – the higher the emissions, the more you will pay.

Before 1 April 2025, EV drivers were exempt from paying road tax. Since April 2025, drivers of EVs must now pay £10 per year road tax (the lowest first-year rate available), rising to the standard rate of £195 per year from the second year onwards. EVs costing more than £40,000 when new will also incur an additional £425 on top of the standard rate, for five years. You can read more about these tax changes on the government website.

Environmental impact: which is more efficient?

Environmental impact: which is more efficient?

Environmental impact: which is more efficient?

EVs are streets ahead of petrol cars when it comes to environmental efficiency: petrol cars release CO2, nitrogen oxides and particulate matter into the atmosphere, contributing to climate change and air pollution. Pure electric vehicles produce zero tailpipe emissions and use less energy than their ICE equivalents.

That’s not to say EVs are carbon-neutral – in fact, the production of a lithium-ion EV battery takes a lot of energy and releases almost 70% more greenhouse gases than the production of a petrol car, according to Volvo. However, data suggests that the emissions EV produce during their manufacture are rapidly offset once you start driving it.

Overall, across the lifespan of the vehicle, an EV is understood to be considerably less harmful than a continually-polluting petrol car.

What the future holds

What the future holds

What the future holds

With the ban on the production of petrol and diesel cars looming, the future of the automotive industry is heavily tilted towards electric vehicles. The EV market is expected to grow rapidly, with new models, technologies and charging options emerging.

Technology is advancing at pace, with improved battery range, faster charging times and increased performance. The future of the automotive industry will likely see a blend of electric and other technologies such as hydrogen fuel, with a continuing focus on sustainability.

As manufacturers continue to invest in EV production and research, prices should continue to fall, meaning that, happily, electric cars will become more widely available and accessible.

The market for used EVs is growing, too – today you can pick up excellent quality used EVs for under £7,000, with second-hand Nissan Leaf and basic Tesla models going for around £10-15,000. Great news for eco-conscious motorists keen to pick up a bargain.

Ultimately, whichever type of car you choose, make sure you work out what your average running costs might be according to your driving habits, so you can be confident in your budget. And whether you go for a petrol or an electric car, consider holding on to it for longer, if you can – this is one of the best ways that drivers can reduce their carbon footprint, maximise the capability of their car, and do their bit for the planet.


FAQs

FAQs

FAQs

Are electric cars more expensive than petrol cars?

At point of purchase yes, they are, but over the lifespan of the car this isn’t the case. EVs are considerably cheaper to run and to maintain, they are exempt from congestion charges and some parking charges, and government incentives can help to reduce upfront costs.

How long does it take to charge an electric car?

Fast charging stations can charge an EV to 80% in around 30 minutes. Charging at home will take several hours, but if you do it during off-peak hours it can save you hundreds of pounds a year.

How far can electric cars travel on a single charge?

Many electric cars can travel 200-300 miles on a single charge, depending on the model. Some smaller, shorter range EVs can cover between 100 and 200 miles, while newer, larger models can travel between 250 and 400+ miles on one charge. Battery size, driving style, terrain and even the weather can all affect battery range and performance.

Are there enough charging stations for electric cars?

Charging stations are growing in numbers, but availability will depend on your location. There are currently around 77,000 public chargers across the UK - an increase of more than 45,000 since 2021 - with the majority of fast and ultra fast chargers located in the South East of England and the fewest in the North East. The government continues to invest in expanding the charging network to improve access across the country.

Are electric cars cheaper to insure?

Electric cars often have higher insurance premiums due to their higher value and the cost of battery replacement. But as EVs become more commonplace, premiums are becoming more competitive.

Are there incentives for buying an electric car?

Yes, there are! The UK government offers grants, reduced road tax and company car tax (Benefit In Kind).

The Electric Car Grant provides two funding levels for cars costing £37,000 or less, based on how sustainably the vehicle is manufactured. Cars with the lowest carbon emissions can receive the highest grant of £3,750, while the second tier offers £1,500.

The electric vehicle chargepoint grant helps you buy a charger to install at home. It’s only available to rental and leasehold properties, but will support up to 75% of the cost, capped at £350. It’s available until 2026.

With the plug-in grant, you can get up to 35% off the price of a brand-new low-emissions plug-in taxi, truck, van or motorbike, or wheelchair-accessible vehicle.

UK businesses can take advantage of the workplace charging scheme, which could cover up to £14,000 of the purchase and installation of EV charging stations at the workplace.

Although electric vehicles now have to pay road tax (they were exempt until 1 April 2025), for the first year you pay the lowest rate available: £10, rising to the standard rate the following year.

The company car tax (BiK) you pay on any company car you drive is very low for electric cars, with an increase of 1% year by year up to 2027. Thereafter it will increase by 2% per year up to 9% in 2029. Compared to the 39% that non-electric vehicles will have to pay in 2029, this is a huge saving.

Read next

Read next

Read next