Cost of owning EVs now more affordable than fuel vehicles

Cost of owning EVs now more affordable than fuel vehicles – RAC | Insurance Business Australia

Motor & Fleet

Cost of owning EVs now more affordable than fuel vehicles – RAC

Survey considered fuel, electricity, licensing, and servicing

Motor & Fleet

By
Roxanne Libatique

The cost of owning and running electric vehicles has become more affordable in Australia as petrol prices spike, according to RAC Insurance’s (RAC) 2023 Car Running Costs survey.

The survey tested more than 90 popular cars across 11 categories, considering costs such as fuel, electricity, licensing, and servicing.

It found that the average weekly cost of owning and operating a vehicle in Western Australia (WA) is $313 weekly, slightly cheaper than in 2022, but nearly $100 more expensive than the average four years ago. Among the vehicles tested, Kia Picanto was the cheapest, at $162.71 weekly. The Subaru Outback was the cheapest large SUV for the fifth year running, at $315.73 weekly.

“Higher fuel prices and interest rates, plus car price increases, are continuing to push costs up across most of the categories,” Forrest said. “Our survey looks past the driveaway price. For example, the Toyota Camry Hybrid came out as the cheapest in the medium car range, and even though it costs more at the dealership, it was $7 a week cheaper to own and run than the non-hybrid Camry.”

Cost of owning and operating an EV

The survey tested 15 EV models, including the BYD Atto 3, Tesla Model Y and Kia EV6. It deemed the GWM Ora – one of the newcomers in Australia – the cheapest, at $224.05 weekly.

“Comparing that with petrol-powered small cars, the GWM Ora was the fifth cheapest among the popular small cars,” Forrest said. “EVs are not affected by fluctuating fuel prices, and they often cost a lot less to service. It’s important to factor in the cost of charging, but overall, the weekly cost of owning and running an EV can now be cheaper than many equivalent petrol or diesel vehicles – particularly when it comes to small and medium cars.”