Battery electric cars (BEVs) now have a more competitive TCO rate in a growing number of segments in European countries, according to Ayvens’ Car Cost Index 2025.

This year’s study reveals the complexity of TCO competitiveness for BEVs as a lease option across segments and countries

The first edition of the Index under the new Ayvens brand, the annual Car Cost Index is a comprehensive analysis of the total cost of owning and operating (TCO) a car, ranging from the sub-compact segment to larger premium car segments for corporates. It’s based on quotations made in Q4 2024 in 28 European countries including the UK.

The Car Cost Index factors in the various costs involved in car ownership in each country, including depreciation, interest, repairs, maintenance, tyres, energy/fuel, tax (excluding VAT) and comprehensive insurance.

Before the tightening of CAFE standards in 2025 and the adoption of new budgetary rules in some markets favouring BEVs over ICEs, this year’s study reveals the complexity of TCO competitiveness for battery electric vehicles as a lease option across segments and countries.

Key findings include: 

The average monthly cost of leasing a car varies hugely across Europe, from €815 (£681) a month in Greece to €1,252 (£1046) a month in Switzerland.

Greece, Sweden and Finland are the cheapest places to lease a battery electric car with the costs below €820 (£685) a month in all three countries.

The average cost to lease a car (BEV, PHEV, petrol & diesel) in Europe is €1090 (£911) a month.

When compared with the TCO of ICE vehicles, BEVs now have a more competitive TCO rate in a growing number of segments in European countries.

Compact segment BEVs are more affordable in western and northern European countries, except in Germany.

The mid-sized standard segment is the least affordable segment, with BEVs being cheaper in 11 countries.

Mid-size premium segment BEVs are cost competitive in all European countries.

The BMW i4 (BEV) has a lower TCO compared to the BMW series 3 (petrol) in 21 EU countries out of 27.

Annie Pin, chief commercial officer at Ayvens, said: “Ayvens’ Car Cost Index was created to help our clients make informed decisions when choosing their fleet vehicles. This report allows them to take into account the overall cost of their vehicles, compare options and evaluate additional trade-offs such as driver taxation and repairs, maintenance and tyres.

“Today, electrification is complex and can be challenging for our fleet managers. It is our role, as a leading player in the leasing sector, to make sure that our clients have the right tools and advice to make smart decisions for their fleets.”

Matt Walters, head of consultancy services and customer value at Ayvens, said the research showed the growing affordability of BEVs across Europe, but added that for UK-based and global fleet managers, understanding local taxation and leasing policies is crucial for future planning.

“As one of Europe’s most mature fleet markets, the UK has seen rising EV adoption, particularly through salary sacrifice schemes. With company car tax incentives favouring electric vehicles, businesses can achieve cost savings – such as reduced National Insurance Contributions – while advancing their sustainability goals. Employees also benefit, gaining access to brand-new EVs at lower costs due to low Benefit-in-Kind tax rates, enhancing morale and retention.

“At Ayvens, we support some of the UK’s largest employers, from healthcare to financial services, and have led salary sacrifice and corporate EV adoption for over a decade. Our focus is on navigating local taxation, policies, and regulations to provide tailored solutions that enable fleets to transition to net zero cost-effectively and sustainably.”

Ayvens Car Cost Index 2025 is available to download here.