Electric car prices are falling… but that doesn’t mean they’re cheap

Whilst there is certainly a saving to be had at the pump when switching from petrol or diesel to electric, the cost of buying an electric car has often been the point of friction for drivers considering the swap.

However, used and hybrid electric vehicles have fallen in price for 5 consecutive quarters, leaving the average price of some of the most in demand vehicles, more than 7% lower than this time last year.

Some recognisable models have fallen in price significantly, including the Nissan Leaf which is down almost 25% over the last year. The Renault Zoe and Toyota Prius have also tumbled in price by double digits.

This raises the question of whether this represents an opportunity for motorists seeking lower prices coupled with lower running costs.

As with all new technology, things tend to improve at pace and electric vehicles are no exception. Better range, faster charging and greater battery efficiency are all great news for anyone buying, but less so for those who already own an electric vehicle.

And this is the sticking point for anyone considering purchasing an electric car now. Cheaper to buy, doesn’t always equal cheaper to own.

With electric cars, the cost of batteries mean that battery health matters far more than milage. Two identical cars can perform very differently depending on how the battery has degraded over time.

Sadly a quick test drive can be an unreliable indicator of battery health and this can make them a tricky purchase on the second hand market.

The other factor for potential owners to consider is how the car will be used. Home charging, ideally on a cheaper tariff, can be the make or break on savings, especially with public charging stations being more costly and less reliable.

In addition, buyers can often overlook increases to insurance, tyres and services when costing up electric vehicles. These can exceed what you would expect to pay for petrol and diesel vehicles.

A £25,000 car, now costing just £16,000 could represent a bargain for some households, but the question to ask is will this car work for your needs? If the economics doesn’t fit your lifestyle, then cheap can quickly become expensive.

Don’t just look at the price, make sure you factor in all these conditions and ensure the assumptions behind the saving actually hold true for your needs.