Can You Really Save Money with an EV?

When it comes to debating the pros and cons of an electric vehicle (EV), the question that comes up the most is the cost of an EV versus a petrol vehicle and whether you can really save money. There are several key factors to consider when weighing up the cost of running an EV versus a petrol vehicle.

Types of EVs

EVs have a battery that’s charged through the power grid or home energy capture, such as solar power. Plug-in hybrid electric vehicles (PHEVs) have a rechargeable battery, along with a traditional internal-combustion engine that kicks in if the vehicle runs out of battery power. A hybrid also has a battery and a combustion engine that work together but it doesn’t need to be plugged in – the electricity is generated through the motor and regenerative braking.

How do you charge an EV or PHEV?

Simply plug the charging cable into your EV or PHEV (one end into the car and the other end into a three-point power socket in your home) and let it charge.

There are also public chargers all around the country. Find the closest one to you through the Charge and Plugshare websites. Public chargers are much faster than if you charged at home and they can refill a battery in as quickly as 20 minutes. Bear in mind that these chargers aren’t free – they cost more than charging at home because of how quickly they recharge a vehicle.

Upfront costs

When it comes to upfront costs, EVs are more expensive. The cheapest EV in the New Zealand market costs around $49,000 but used imported EVs can cost less than half the price. Bear in mind that the condition and health of a second-hand EV won’t be as good as a brand new one – particularly when it comes to battery health.

The good news is that the New Zealand government is offering a Clean Car Discount (CCD) for EVs registered in New Zealand for the first time up to the end of March 2022. Find out more about the CCD and the eligibility criteria on the Waka Kotahi (NZ Transport Agency) website.

Maintenance costs

One of the most cost-effective reasons to own an EV is their low maintenance requirements. A fully electric EV has around 20 moving parts compared with approximately 2,000 in a fuel-powered vehicle.

For example, an EV doesn’t need an oil change or filter and it doesn’t have a gearbox or spark plugs, so there’s less to take care of. Its servicing needs are lower as a result, and the regenerative braking system also saves wear on the brakes.

The cost of charging

If, like most Kiwis, you drive an average of 25-30km a day, the cost of charging an EV is equivalent to paying 30c per litre for petrol. Charging your EV while you sleep costs about $3 per 100km, depending on the EV model.

For an average daily drive, you wouldn’t be using all your battery power, so it could cost as little as $1 to recharge the next night. In total, that’s about $15 a fortnight. Remember, the actual amount will vary depending on the time of day you’re charging it, the amount of driving you do, and the type of driving, such as on hills or fast motorways.

Even though hybrids need to be filled with petrol, they are still very fuel-efficient because the electric engine shares the workload with the internal combustion engine. This means you spend less on fuel and you also have lower emissions into the bargain.

How far will my EV take me?

Another question about EVs is how far they can drive before running out of charge and what to do if this happens. Well, it’s like a petrol car – you simply find the nearest place to fill up or, in this case, charge up.

In terms of range, let’s look at a new Nissan Leaf. When fully charged, its range is approximately 247km, which is just over the distance from Auckland Central to Rotorua (227km). However, factors such as air conditioning or heavy luggage can drain the battery faster.

So, can you really save money with an EV? The upfront cost of an EV can be significantly higher than a petrol vehicle but, if you consider the long-term costs, such as fuel and maintenance, it can definitely be a lot easier on your wallet.