Motorists who purchase an EV over its petrol equivalent stand to save up to £7,000 over the next four years, while upfront price parity is “in reach” of drivers.

In 30% of EV switch scenarios, drivers would gain financial benefits immediately, or in less than a year

No matter what method drivers use to purchase a new EV, they can expect to save a minimum of £3,000 over the same period, according to the analysis by EV consultancy New AutoMotive.

These savings are a result of lower charging prices versus petrol, cheaper maintenance costs and tax exemptions – and those driving further than the national average are able to make even greater savings.

The savings are revealed by comparing the upfront price of seven common EVs and their running costs, against their petrol counterpart in three different scenarios.

The scenarios include a driver purchasing the vehicle outright, leasing the car through their place of work, and undertaking a personal contract purchase.

In more than half (55%) of the scenarios tested, an EV would pay back any additional cost in a maximum of two and a half years. In a third (30%) of scenarios, drivers would see the financial benefits immediately, or in less than a year.

Models used to calculate the figures include the Peugeot e-2008 GT, which is more than £4,000 cheaper than its petrol equivalent, and the Citroën eC4 Max clocking in at £2,500 cheaper.

The research also reveals that the average upfront cost of a new electric vehicle is just 12% more than the petrol equivalent – far lower than the commonly cited 50% – putting upfront price parity within reach.

The report sets out a wide range of policy recommendations that the next government could implement to help accelerate the UK’s transition to electric cars further.

These include not weakening the ZEV mandate – which has been the main driver of price reductions for EVs – as well as cutting the 20% VAT on public EV charging to match the 5% for domestic energy, plus better public communications, including making it easier for drivers to work out the cost savings from switching to electric.

Ben Nelmes, CEO of New AutoMotive, said: “Many motorists will only consider going electric when the cars cost the same or less than their petrol or diesel equivalents.

“Our report finds that the UK is on the cusp of this tipping point. Soon, buying an EV will no longer just be the environmentally responsible and financially savvy thing to do. Instead, it will be a financial no-brainer, with consumers able to start saving from day one.

“Reductions in the prices of electric cars are being driven by the UK’s world-leading ZEV mandate, which is increasingly providing a lifeline for those who have to choose between an empty tank or an empty wallet.”

New AutoMotive’s full ‘Price Parity 2024: The Final Mile’ report is here.