Will switch-over to electric vehicles hit us in the pocket?

Debate continues over the switch to electric vehicles.

It is now just five short years until sales of new petrol and diesel cars are banned in the UK – but arguments still rage on among motorists and experts about the cost of switching to electric vehicles (EVs).

The Labour government last month announced that the sale of new petrol and diesel cars will officially be phased out in the UK by 2030, with all new cars and vans being fully zero-emission by 2035.

This means that you won’t be able to buy new petrol or diesel cars after 2030, but you can still buy and drive used ones. Hybrid cars can be sold until 2035 but after then, all new cars and vans sold in the UK will have to be fully zero-emission.

But despite strong evidence that the sales of used EVs are now rising across the country, some motorists believe that the withdrawal of government grants, an ongoing dearth of charge points – and the introduction for the first time this year of road tax for electric models – amounts to something of a betrayal of the EV dream.

However, despite the disappearance of some incentives, experts say the drive for the UK to reach net zero by 2050 means that for private car owners, it will eventually be a case of take it or leave it.

The Society of Motor Manufacturers and Traders (SMMT) said there is simply no avoiding that, in the not-too-distant future, almost every motorist will have an EV.

SMMT chief executive Mike Hawes told The Sunday Post: “There are now fewer than 10 years until all new cars must be zero emission, so the future of EVs is assured.

“But accelerating that transition still requires more investment in charge point rollout and wider support, not least in fiscal incentives for private buyers and a reduction in energy costs to help with total cost of ownership.”

In the past three years, government-backed schemes for motorists to go electric have been significantly diminished. An initial £3,000 grant for EV purchases was reduced to £1,500 in 2022 and was subsequently scrapped.

EVs also previously enjoyed an exemption from road tax (VED), but this was removed last month, meaning EV owners now need to pay VED. Most EV drivers will be expected to pay £195 a year, the same fees petrol and diesel owners pay. There are also extra levies on premium cars with a value of more than £40,000 – although there are suggestions the UK Government is about to drop those for EVs.

And while EV owners can still apply for exemptions from congestion and ULEZ charges, London is discontinuing these benefits for EVs from December this year, and other cities may follow suit.

Another gripe is that the nationwide public electric charger rollout has been too slow.

North of the border, just over 6,000 public charge points were operational towards the end of last year, delivered through a combination of public and increasing private sector investment.

However, 24,000 additional charge points are still required by 2030 and the Scottish Government expects the majority of these to be delivered by the private sector.

A further concern for motorists is the ongoing cost of charging.

EVA Scotland, the voice of the electric vehicle movement in Scotland, said those who live in properties without off-street or private parking will be left facing higher costs.

“This is a key point for the Scottish Government to legislate on, creating the right to charge,” said EVA Scotland director Neil Swanson. He explained that drivers with private, off-street parking are generally able to access time of use and smart tariffs such as Octopus Go, where the cost per unit can be a third of the price or lower than a normal domestic tariff.

However, public charging has higher costs per unit than a standard domestic tariffs. VAT is 20% rather than 5% and the commercial price for electricity, then supplied through the charge point, is also higher.

“Simply put, if you cannot charge at home and you cannot charge at work, then the options remaining can be five to 12 times more expensive,” Swanson said.

He pointed out, though, that it has always been clear that incentives and grants that were used to support an emerging market would be temporary.

The latest figures show that sales of second-hand EVs are now rising across the country as prices fall into line with the cost of buying used petrol and diesel models.

While EV motoring was, even just five years ago, mainly the preserve of the rich, company car drivers and Motability drivers, it is now becoming within the reach of most.

Leading motoring commentator Quentin Willson said that in April, new UK EV registration figures in the UK stood at 24,558, a 20.4% market share and up by 31% compared to the first four months of 2024. Used EV sales have also risen by 35.9% since last year, according to Auto Trader.

In Scotland, pure battery electric vehicle (BEV) sales are showing a healthy 57% increase against 2024 with BEV cars now accounting for 13.5% of total sales.

But the really good news for most drivers is that while a new electric car is often 50% more expensive than its petrol or diesel equivalent, once that car is up for sale in the second hand market, its price plunges.

Used electric cars recently on sale in Scotland, offering massive discounts on their new price included a 2024 Kia Niro family car for £22,780 with just 2,900 miles on the clock – which would be about £30,000 new. This is broadly equivalent to used petrol or diesel cars of the same age and miles.

Meanwhile, Transport Scotland on Wednesday announced £20 million in loans for lower-income homes to buy electric cars (along with electric taxis and vans).

Willson said: “In a depressed consumer market EVs are performing surprisingly well, especially given that there are now no subsidies available for private EV buyers for either cars or chargers. Many used EVs are now at price parity with secondhand petrol and diesel, and some are selling for less.

“Buyers are also beginning to recognise that the lower charging costs, especially at home, and much lower garage bills and maintenance costs mean savings of over £1,200 a year.”

He added: “Battery life is now proven, with Tesla reporting that at 200,000 miles their batteries lose an average efficiency of 12%.

“Some ex-taxi EVs are appearing on the market with 300,000 miles on their original battery packs.”

Willson said he believed that messaging from government and car makers needs to be better and policies need to be consistent.

“The Treasury raising the VED for EVs with their Expensive Car Supplement for EVs over £40,000 hasn’t helped adoption, and steadfastly refusing to lower the VAT on public charging from 20% to the home rate of 5% also sends mixed messages to buyers,” he said.

“Ministers tell us that we should be driving EVs, but Treasury creates financial barriers to uptake. We also need independent information available to potential buyers highlighting the benefits and disadvantages of electric cars. Government should do much more.

He added: “Scotland needs its own EV information campaign, cheaper charging costs, reduced EV charging taxation and incentives like free parking and use of bus lanes.

“Signs on the road network to show non-EV drivers that a charging infrastructure already exists would also help adoption. Something England – bizarrely – doesn’t have.

“For instance, Norway has achieved over 90% EV penetration by simple, cost-efficient incentives to increase adoption.”

Transport Scotland said that since 2011 the Scottish Government has provided over £65 million to support the development of public EV charging infrastructure and that more investment is on the way.

It added: “The Scottish Government is continuing to support the expansion of public EV charging through its £30 million EV Infrastructure Fund and there is a commitment to deliver a new £5 million charge point fund to support the delivery of public charging infrastructure in rural and island communities. Plus, there is a new grant scheme to help pilot cross-pavement EV charging solutions for domestic properties without off-street parking.”

The agency added that for those thinking of making the switch, The Energy Saving Trust provides detailed advice on electric cars on its website.