Most popular used electric cars could save owners £1,600 compared to petrol

Owners of the UK's most popular second-hand electric vehicles (EVs) could pocket an average saving of £1,600 annually compared to their petrol counterparts, new research suggests. \

The Energy and Climate Intelligence Unit (ECIU), which carried out the study, noted that since early 2023, savings have increased as used EVs are "no longer more expensive to buy". The think tank believes this indicates that the policy requiring carmakers to sell a certain quota of zero emission vehicles (Zev) each year "is working".

This comes ahead of a meeting between ministers and automotive industry leaders on Wednesday to consider relaxing the mandate. The ECIU's analysis considered the six top-selling EV models in the UK, evaluating their total cost of ownership, including purchase price and running expenses like electricity, against their petrol equivalents.

The Audi e-tron topped the list with potential annual savings of about £2,600, while the Renault Zoe offered the least at approximately £875 per year.

Since January 1, under the zero-emission vehicle (Zev) mandate ( introduced by the Tory government, a minimum of 22% of all new cars sold by each manufacturer in the UK this year must be emissions-free, typically meaning fully electric. This percentage is set to increase yearly until it hits 100% by 2035.

Manufacturers who fail to comply with the mandate or do not utilise available flexibilities, such as rolling over credits from previous years, face a Government fine of £15,000 for every non-compliant vehicle sold over the limit.

The Energy and Climate Intelligence Unit has calculated that new electric vehicles purchased while the zero-emission vehicle mandate is active could save future second-hand buyers close to £40bn by 2035, as reported by The Sunday Times.

Transportation Secretary Louise Haigh and Business Secretary Jonathan Reynolds are gearing up for discussions with car manufacturers, who are aiming to ease the mandate regulations.

According to figures from the Society of Motor Manufacturers and Traders, the market for pure electric pre-owned cars is booming, with record sales seen lately. Some 53,423 of the cars were acquired between July and September, a significant jump of 57% from the same period in the previous year.

Colin Walker, a transport analyst at ECIU, commented: "Increasing numbers of regular families are now trading in for an EV on the second-hand market, taking advantage of the hundreds of pounds of savings they can generate every year, and turning their backs on paying the ‘petrol premium’ of their old car."

He praised the effectiveness of the prior government's Zev mandate policy, noting: "The previous government’s Zev mandate policy is working, with manufacturers discounting their EVs as they compete for sales to hit their targets.

'As prices are driven down, sales are going up. The increasing number of new EVs being sold today will hit the used market in around three to four years’ time, opening up the opportunity for cheaper and cleaner electric driving to the majority of people, as most people buy their cars second-hand.

"Any slowdown in the roll out of EVs under the Zev mandate could cost British drivers millions if not billions of pounds in extra driving costs in the coming years."