EV vs petrol: the true cost of ownership in 2026

The 'EVs are cheaper to run but more to buy' rule of thumb is starting to break down in 2026. Used EV prices have fallen sharply, new ones are now competitive on sticker price for many segments, and Vehicle Excise Duty changes from April 2025 have ended the £0 road tax era for EVs. Here's the honest five-year comparison for a typical family.

The two cars

• Petrol: Volkswagen Golf 1.5 TSI, new list price £29,500.
• EV: Volkswagen ID.3 Pro, new list price £33,000 (or £24,500 as a 2-year-old used).

Assumptions: 9,000 miles/year, 80% home charging on a 7p overnight tariff, 20% public charging at 55p/kWh, petrol at £1.42/litre.

Year-by-year totals (new vs new)

| Cost line | Petrol Golf | EV ID.3 | |---|---|---| | Fuel/electricity (5y) | £5,150 | £1,830 | | Servicing (5y) | £1,400 | £700 | | VED (5y) | £965 | £905 | | Insurance (5y, avg) | £2,950 | £3,200 | | Depreciation (5y) | £14,500 | £15,200 | | 5-year total cost of ownership | £24,965 | £21,835 |

The new EV is around £3,100 cheaper to own over five years, despite the £3,500 higher list price. Fuel is by far the largest swing.

Used EV vs used petrol

This is where the gap widens. A 2-year-old ID.3 at £24,500 vs a 2-year-old Golf at £21,500 — over the next five years, the EV is roughly £4,800 cheaper thanks to the same fuel and servicing dynamics applied to a smaller depreciation base.

Where EVs still lose

• No home charging. If you rely solely on public rapid chargers at 55–79p/kWh, the running-cost advantage shrinks to almost nothing.
• Very low annual mileage (< 4,000). Fuel savings need miles to accumulate.
• Towing or very long motorway commutes. Range and charging time still bite.

What to actually do

1. If you have off-street parking — a home charger and a 7p overnight EV tariff are where 90% of the savings come from. Without these two things, the case weakens significantly.
2. Used EV (2–3 years old) is in 2026 the sweet spot. Battery health on cars in this age range is consistently above 92%.
3. Insurance — get three quotes. EV premiums vary far more between insurers than petrol equivalents.

EVs aren't automatically cheaper, but for a household with a driveway and average mileage the maths in 2026 now favours them clearly. The 'too expensive' argument is increasingly outdated.