Are Electric Cars Cheaper to Run in 2026?

Yes, for many UK drivers, electric cars are still cheaper to run than petrol or diesel cars in 2026. While electric vehicles (EVs) are no longer exempt from Vehicle Excise Duty (VED), they generally cost less to fuel, require less maintenance and continue to offer tax advantages for many company car drivers. How much you save depends on where you charge, how far you drive and the type of vehicle you choose.

With the cost of motoring remaining a concern for many households, more drivers are looking beyond the purchase price and considering the total cost of ownership.

Research commissioned by Gateway2Lease and conducted by YouGov found that 38% of drivers said they were more conscious of driving costs as a result of rising fuel prices in the UK. It also found that 31% of 18 to 54-year-old drivers who don't currently own an electric vehicle would consider switching to one based on current fuel prices, or if prices rise by up to 50p or more on top of what they usually pay. Together, these findings suggest that more drivers are focusing on the overall cost of motoring when choosing their next vehicle. You can read the full findings in our Fuel Price Increase Boosts EV Interest report.

Are electric cars cheaper to fuel?

For many drivers, yes.

Charging an electric car at home is typically much cheaper than filling a petrol or diesel vehicle with fuel, particularly when using an off-peak electricity tariff.

Public charging costs vary depending on the charging network and charger speed. Rapid and ultra-rapid chargers offer convenience on longer journeys but usually cost more than charging at home. Even so, many EV drivers still spend less on charging over the course of a year than owners of comparable petrol or diesel vehicles spend on fuel. If you're new to electric vehicles, our EV Charging Explained guide explains the different charging options, charging speeds and how off-peak tariffs can help reduce running costs even further.

Drivers who tend to benefit most are those who:

• Charge mainly at home
• Take advantage of off-peak electricity tariffs
• Drive higher annual mileage

Are electric cars cheaper to maintain?

Generally, yes.

Electric vehicles have a mechanically simpler powertrain than petrol or diesel cars, meaning there are fewer components that require routine maintenance or replacement.

Unlike traditional vehicles, EVs don't require oil changes, timing belts or exhaust system repairs. Routine servicing typically focuses on tyres, brakes, suspension, cabin filters and brake fluid.

Regenerative braking also helps reduce wear on brake pads and discs, which can lower maintenance costs over the lifetime of the vehicle.

If you're considering making the switch, our EV Range Explained guide answers common questions about battery technology, charging and how far electric cars can travel on a single charge.

Do electric cars still save money on tax?

Electric vehicle taxation has changed in recent years.

Since April 2025, electric cars have been subject to Vehicle Excise Duty (VED), meaning they are no longer exempt from road tax. Depending on the vehicle's list price, some models may also be liable for the Expensive Car Supplement.

However, electric vehicles continue to offer significant tax advantages elsewhere.

For company car drivers, fully electric vehicles still benefit from low Benefit-in-Kind (BiK) tax rates compared with petrol and diesel alternatives, making them one of the most tax-efficient company cars available.

What's the total cost of owning an electric car?

Looking beyond the purchase price provides a clearer picture of how much a vehicle really costs to own.

Although some electric cars can still cost more to buy outright than an equivalent petrol or diesel model, lower day-to-day running costs often help offset that difference over time.

Potential savings can come from:

• Lower charging costs
• Reduced servicing and maintenance
• Fewer mechanical repairs
• Lower Benefit-in-Kind tax for eligible company car drivers

Every driver's circumstances are different, but for many households and businesses, an electric vehicle can work out to be the more cost-effective option over several years.

Is leasing an electric car more affordable?

For many drivers, leasing is one of the most accessible ways to switch to an electric vehicle.

Rather than paying a large upfront purchase price, leasing spreads the cost into fixed monthly payments, making budgeting simpler while avoiding concerns about future depreciation.

The same YouGov research found that 56% of respondents who wouldn't switch to an electric vehicle said the high upfront cost was the biggest barrier. For many drivers, leasing helps overcome that obstacle by removing the need for a significant initial investment while providing fixed monthly payments and access to the latest electric vehicles, battery technology and safety features.

If you're ready to compare models, browse our latest electric car leasing offers.

Final thoughts

For many UK motorists, electric cars continue to offer lower running costs than petrol or diesel alternatives, particularly for those who can charge at home and drive regular mileage.

As Gateway2Lease's commissioned YouGov research demonstrates, fuel prices are encouraging more drivers to think carefully about the long-term cost of motoring and explore alternatives to petrol and diesel vehicles. If you're looking to reduce your day-to-day running costs without the large upfront expense of buying a new car, leasing an electric vehicle can be an affordable and practical way to make the switch.

Whether you're just starting your research or are ready to compare deals, explore our Electric Vehicle Guides for more information or browse our latest electric car leasing offers.

All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,054 adults and fieldwork was undertaken between 1st and 2nd June 2026. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).