Electric car buying guide
With several new electric models confirmed to arrive in the UK over the coming year, and the Plug-in Car Grant now guaranteed until 2018, the future promises to be an exciting one for electric car buyers. Now, buying an electric car is a real option for an large number of UK motorists.
This buying guide provides an overview of the key issues to consider when looking to buy an electric vehicle; which include whether an EV is right for you, the availability and choice of electric models, and the impact on vehicle ownership and running costs.
Who should buy an electric car?
There are three key issues that determine whether a battery electric car is right for you: Do you have access to off-street parking? Is your daily mileage under 100 miles? And are you looking to buy a new or nearly-new car?
First, you need to have access to a garage, drive or other off-street parking area to be able to recharge an electric car overnight, the most common form of recharging method. Recent research suggests that around 80% of UK car-owning households already have access to a garage or other off-street parking facility (<50% urban, 70% sub-urban, and >95% rural). It is worth remembering that there is help available for those who would like to install an EV charging point in their home.
While it is never advisable to trail an electric cable across pavements or other public areas to connect a car parked on-street with your household electricity supply, if on-street parking is the only possibility, all is not lost. The latest Government funding allows householders to apply for a public on-street charge point close to where they live. Interested homeowners should contact their local authority who can apply for funding on their behalf and manage the installation.
Second, your driving mileage needs to be less than around 100 miles per day, preferably on a regular route that you know well. For example, regular commuting trips are well suited to electric cars – around two-thirds of commuting trips are less than 10 miles and, most significantly, they are routine journeys for which the driver knows what to expect with respect to distance, route, congestion, road conditions and parking.
Third, you need to be able to afford a new or nearly-new car – few electric cars (as opposed to electric quadricycles) are yet available on the used car market and, as is discussed later in the guide, electric cars are more expensive than their conventional equivalents, a situation likely to remain the case for some time.
That said, there are some bargains to be had if you are looking to buy a two to three year old EV – see our EV Classifieds for the latest offers. Most of these will still be under warranties which cover the battery and power-train.
What models are available now?
Although electric vehicles have been available for decades, only recently have the major manufacturers invested in high quality electric models to meet the needs of twenty-first century consumer. This has involved increasing driving range and reducing vehicle price. A new recharging infrastructure is also being rapidly developed across the UK.
The key year was 2011 when the current EV revolution truly began; as can be seen by the number of electric and plug-in hybrid models available in the UK. While only 9 EVs were available from the major manufacturers in 2011, this increased to 18 models in 2013, and now stands at more than 35 high-quality cars and vans, with more models due for launch this year and next.
Models such as the Renault Zoe, Nissan's Leaf and the BMW i3 have helped introduce EV motoring to the public, proving that reliable cars from major manufacturers can be a viable alternative to conventionally fuelled vehicles. Now there are around 50,000 plug-in vehicles on UK roads with more models being confirmed all the time.
Use the electric vehicle search for a list of all the electric cars and vans available in the UK.Click here to search for available electric models
The cost of buying an electric car
Car buyers wanting to purchase a plug-in hybrid electric vehicle (PHEV) should be aware that some OTR prices may increase from March 2016 due to new grant levels coming into effect on 01 March 2016.
In general, electric vehicles are more expensive to buy than their petrol or diesel equivalents. However, since 2011, the Plug-in Car and Plug-in Van Grants have subsidised the purchase of eligible cars up to a maximum of £5,000; for vans, the amount is up to 20% up to a maximum of £8,000. These grant levels will remain in place until the end of February 2016.
From 01 March 2016, a new modified system of Plug-in Vehicle Grants will be introduced. While the grants will still represent a significant subsidy, two new rates will be introduced with the level of subsidy for plug-in hybrids (PHEVs) falling by 50 per cent from a maximum of £5,000 to £2,500. All-electric models may also be affected, although to a lesser extent than for PHEVs, with the PiCG for full EVs reducing by £500 to a maximum of £4,500.
The new PiCG rates will be awarded using a new EV classification system, each EV being classed depending on the level of CO2 emissions and the EV-only capable range: • Category 1: CO2 emissions <50g/km and a zero emission range of at least 70 miles • Category 2: CO2 emissions <50g/km and a zero emission range between 10 and 69 miles • Category 3: CO2 emissions of 50-75g/km and a zero emission range of at least 20 miles
Category 1 vehicles will benefit from the full £4,500 grant while Category 2 and 3 vehicles will receive £2,500. The current grant scheme will run until March 2018 or until a certain number of each grant has been awarded.
A price cap will also be introduced in March 2016. Category 2 and 3 models with a list price of more than £60,000 will not be eligible for the PiCG, though all Category 1 vehicles will be able to have the full PiCG no matter what their cost.
Both private car buyers and fleets are eligible to receive the grants, which are administered by the Office for Low Emission Vehicles (OLEV) – no application forms are required as the dealership completes all the necessary paperwork on the buyer's behalf and the grant is automatically deducted from the vehicle price at the point of purchase.
As EVs tend to have a high purchase price but low running costs, leasing may be a better proposition – indeed, some models (or battery packs) are only available on lease for this very reason. Leasing also removes some of the uncertainty about the resale value after 3-4 years – although this uncertainty is reflected in the leasing prices which tend to be higher than for similar conventional cars.
It should be noted that leasing prices will also be affected b the forthcoming changes to the PiCG. Next Green Car partners GKL Leasing are forecasting monthly increases in business premiums of at least £90+VAT from March 2016 and are encouraging potential customers to place orders by the end of February to secure the offers based on the current grant.
Electric car running costs
Three significant financial incentives significantly reduce the costs of running an electric car or van: Zero-rated car tax (Vehicle Excise Duty); Zero-rated fuel tax (electricity also only attracts 5% VAT for private use); and the Ultra Low Emission Discount Scheme (ULED) which effectively exempts EVs from paying the London Congestion Charge.
While electric vehicles may be expensive to buy or lease, electric cars and vans are exempt from Vehicle Excise Duty ('car tax'). Owners of electric vehicles will therefore save around £145 per year compared to an average conventional petrol or diesel car (VED Band F).
Fuel costs are also very low due to the competitive price of electricity (fuel duty is zero-rated) and to the high efficiency of the vehicles themselves – fuel costs can be as low as 3p per mile (depending on tariff). For an annual mileage of around 10,000 miles, switching from a conventional to an electric car or van could save you around £800 in fuel costs alone. To see how much you could save in fuel bills compared to petrol or diesel cars, visit our Fuel Cost Calculator.
For drivers in and around London, the other major running cost to consider is the Congestion Charge. All electric cars are currently eligible for the Ultra Low Emission Discount Scheme on the London Congestion Charge, giving them a 100% discount on the Congestion Charge (although vehicles need to be registered and pay an annual £10 fee). With a standard £11.50 payable daily charge without the discount, this could provide a potential annual saving of over £2,000.
Electric car charging
As previously mentioned, in most cases, electric vehicles are most suitable for people who have reliable access to charging facilities at home or at work. When travelling further afield, electric vehicle users will need to rely on the growing public charging network.
Public charging networks offer a mix of slow, fast and rapid charging points operated by either a national or regional network, the largest of which include: Source London, ChargePoint Scotland, Plugged-in Midlands, Northern Ireland, Charge Your Car, Ecotricity, POD Point and ChargeMaster/ POLAR. Once a member, EV users have access to all charge points in networks with which they are registered.
For further information on all the network operators across the UK, including area of operation, costs and access arrangements visit the Zap-Map public charging guide.Click here to explore Zap-Map