Is an EV cheaper than a petrol car?

A close shot of an EV charging with a young family in the background at sunset
EV plus family

Electric vehicles (EVs) can cost less to own than a petrol car for many Australian drivers, but the overall cost depends on factors such as purchase price, charging, maintenance and how much you drive. Here's what to consider when comparing the two.

Electric vehicles are becoming more common on Australian roads, but many drivers still have one big question before making the switch:

Will an EV actually save me money?

The answer depends on several factors, including how much you drive, where you charge, the vehicle you choose and how long you plan to keep it.

While EVs often cost more to buy upfront, they can have lower ongoing running costs than petrol cars. Looking beyond the purchase price can help you make a more informed comparison.

At a glance: Is an EV cheaper than a petrol car?

An EV may cost less if you:An EV may cost more if you:
✔  Drive regularly✖  Drive infrequently
✔  Charge at home✖  Rely mainly on public fast charging
✔  Can charge overnight✖  Have limited access to home charging
✔  Plan to keep your car for several years✖  Replace your vehicle regularly
✔  Want to reduce your day-to-day running costs 

What makes the biggest difference?

Several factors can influence whether an EV costs less to own than a petrol or diesel car, but there are five that really stand out:

  1. How many kilometres you drive each year
  2. Whether you can charge at home
  3. When you charge
  4. Fuel and electricity prices
  5. How long you keep the vehicle

Someone who drives long distances and charges overnight at home may see very different expenses to someone who drives infrequently and relies mainly on public charging stations.

Upfront costs

EVs often cost more to buy

One of the biggest differences between EVs and petrol cars is the purchase price. 

Although EV prices have fallen in recent years and more affordable options are becoming available, many EVs are a bigger upfront investment than a comparable petrol model.

Depending on where you live, government incentives, rebates or novated leasing arrangements may help reduce the difference. However, these programs can change over time, so it's worth checking the latest information available in your state or territory.

While the purchase price is important, it doesn't tell the whole story. Ongoing expenses such as charging and maintenance can have a big impact on an owner's wallet over time.

Running costs

Charging versus petrol

For many drivers, this is where EVs can start to offer savings.

Instead of paying for petrol, EV owners pay for the electricity used to charge their vehicle. The cost can vary depending on your electricity plan, usage habits and whether you top up at home or use public charging stations.

Home charging is often more affordable than relying on public fast chargers, particuarly if you're able to utilise off-peak periods. Public charging can be convenient when you're on the go, but many EV owners do most of their charging at home where costs may be lower.

The amount you pay to charge can differ significantly depending on when and where you do it, which is why your home electricity plan is often one of the biggest factors affecting EV running costs.

How much you drive also plays a major role. Drivers who spend more on fuel each week may be more likely to see saving from swtiching to an EV than someone who only uses their vehicle occasionally.

Close up of male hand plugging charger into Tesla EV
EV charge at home

Make the most of overnight charging

Charging overnight can be one of the most convenient and cost-effective ways to power an EV. HomeEV* helps eligible customers make the most of charging at home with low off-peak rates designed for EV owners.

Explore HomeEV

Maintenance and servicing

EVs have fewer moving parts

Petrol cars require regular servicing for components such as engine oil, oil filters and spark plugs.

EVs don't have many of these parts, which can reduce some routine servicing.

That doesn't mean EVs are maintenance free. Tyres, brakes, heating and cooling systems, and other components still need to be inspected and maintained. However, reduced servicing requirements are often cited as one of the benefits of EV ownership.

These expenses will vary between manufacturers and models, so it's worth understanding the service requirements before making a decision.

Other ownership costs to consider

Insurance

Insurance premiums can vary significantly based on the vehicle, driver history, location and insurer.

Depending on the model you choose, an EV may cost more or less to insure than a comparable petrol vehicle. Comparing insurance quotes before purchasing can help you build a clearer picture of ongoing ownership expenses.

Resale value

Like any vehicle, resale value depends on factors such as age, condition, market demand and future technology developments.

While resale value is worth considering, it's only one part of the overall ownership picture.

Tip callout

Key takeaway: While EVs often cost more to buy upfront, many Australian drivers may spend less on charging and maintenance over time.

So, is an EV cheaper than a petrol car?

For many Australians, the answer can be yes — particularly if they regularly drive, charge at home and keep their vehicle for several years.

The best choice will depend on your circumstances, but considering both upfront and ongoing costs can help you decide which option is right for you.

* Energy Factsheet and Basic Plan Information Document available upon request.