Electric vs Petrol vs Diesel: Total Cost of Ownership 2025

Choosing between electric, petrol, and diesel isn't just about the purchase price. This comprehensive analysis examines the true cost of ownership over 3 years and 36,000 miles.

Purchase Price Comparison

Small Family Car (e.g., Nissan Leaf vs VW Golf)

Electric (Nissan Leaf):

• New: £32,000
• 3-year-old: £18,000
• Government grant: £0 (ended 2022)

Petrol (VW Golf 1.5 TSI):

• New: £28,000
• 3-year-old: £16,000

Diesel (VW Golf 2.0 TDI):

• New: £30,000
• 3-year-old: £17,000

Initial Cost Winner: Petrol (3-year-old)

Fuel Costs (36,000 miles over 3 years)

Electric Vehicle

Home Charging (Off-Peak):

• Cost per kWh: £0.07
• Efficiency: 3.5 miles/kWh
• Annual mileage: 12,000 miles
• Annual cost: £240
• 3-year total: £720

Public Charging (Mix):

• Average cost per kWh: £0.45
• 30% public charging
• Annual cost: £540
• 3-year total: £1,620

Petrol Vehicle

Fuel Consumption:

• Average MPG: 45
• Fuel price: £1.45/litre
• Annual mileage: 12,000 miles
• Annual cost: £1,740
• 3-year total: £5,220

Diesel Vehicle

Fuel Consumption:

• Average MPG: 55
• Fuel price: £1.52/litre
• Annual mileage: 12,000 miles
• Annual cost: £1,520
• 3-year total: £4,560

Fuel Cost Winner: Electric (home charging)

Tax and Insurance

Road Tax (VED)

Electric:

• Years 1-3: £0
• 3-year total: £0

Petrol:

• Year 1: £220
• Years 2-3: £180/year
• 3-year total: £580

Diesel:

• Year 1: £240
• Years 2-3: £180/year
• 3-year total: £600

Insurance (Comprehensive)

Electric:

• Annual average: £650
• 3-year total: £1,950

Petrol:

• Annual average: £550
• 3-year total: £1,650

Diesel:

• Annual average: £580
• 3-year total: £1,740

Tax Winner: Electric Insurance Winner: Petrol

Maintenance and Servicing

Electric Vehicle

Annual Service:

• Basic service: £150
• No oil changes
• Brake pads last longer (regenerative braking)
• Fewer moving parts
• 3-year total: £450

Additional Costs:

• Tyres (wear faster): £600
• Cabin filter: £60
• Total: £1,110

Petrol Vehicle

Annual Service:

• Basic service: £200
• Major service (year 3): £400
• Oil changes: £80/year
• 3-year total: £840

Additional Costs:

• Tyres: £400
• Brake pads: £200
• Exhaust: £150
• Total: £1,590

Diesel Vehicle

Annual Service:

• Basic service: £250
• Major service (year 3): £500
• Oil changes: £100/year
• DPF maintenance: £200
• 3-year total: £1,250

Additional Costs:

• Tyres: £450
• Brake pads: £200
• AdBlue: £150
• Total: £2,050

Maintenance Winner: Electric

Depreciation (3 years, 36,000 miles)

Electric Vehicle

Purchase Price: £18,000 (3-year-old) Resale Value: £12,000 Depreciation: £6,000 Annual: £2,000

Factors:

• Battery degradation concerns
• Rapid technology advancement
• Government policy uncertainty

Petrol Vehicle

Purchase Price: £16,000 (3-year-old) Resale Value: £11,000 Depreciation: £5,000 Annual: £1,667

Factors:

• Stable demand
• Proven reliability
• Broad buyer appeal

Diesel Vehicle

Purchase Price: £17,000 (3-year-old) Resale Value: £10,500 Depreciation: £6,500 Annual: £2,167

Factors:

• Declining demand
• Clean Air Zones
• Environmental concerns

Depreciation Winner: Petrol

Total Cost of Ownership (3 years, 36,000 miles)

Electric Vehicle

| Cost Category | Amount | |--------------|--------| | Purchase Price | £18,000 | | Fuel (home charging) | £720 | | Road Tax | £0 | | Insurance | £1,950 | | Maintenance | £1,110 | | Depreciation | £6,000 | | Total Cost | £27,780 | | Cost per mile | £0.77 |

Petrol Vehicle

| Cost Category | Amount | |--------------|--------| | Purchase Price | £16,000 | | Fuel | £5,220 | | Road Tax | £580 | | Insurance | £1,650 | | Maintenance | £1,590 | | Depreciation | £5,000 | | Total Cost | £30,040 | | Cost per mile | £0.83 |

Diesel Vehicle

| Cost Category | Amount | |--------------|--------| | Purchase Price | £17,000 | | Fuel | £4,560 | | Road Tax | £600 | | Insurance | £1,740 | | Maintenance | £2,050 | | Depreciation | £6,500 | | Total Cost | £32,450 | | Cost per mile | £0.90 |

Winner: Electric (with home charging)

Savings vs Petrol: £2,260 over 3 years Savings vs Diesel: £4,670 over 3 years

When Each Fuel Type Makes Sense

Choose Electric If:

✓ You have off-street parking ✓ You can charge at home ✓ Daily commute under 150 miles ✓ Access to workplace charging ✓ Environmental concerns ✓ Low annual mileage (under 15,000)

Choose Petrol If:

✓ No home charging available ✓ High annual mileage (over 20,000) ✓ Regular long-distance travel ✓ Lower purchase price priority ✓ Proven reliability important ✓ Wider model choice needed

Choose Diesel If:

✓ Very high annual mileage (over 25,000) ✓ Frequent motorway driving ✓ Towing requirements ✓ Long-distance commuting ✓ Commercial use ✓ Maximum fuel economy needed

Future Considerations

2025-2030 Outlook

Electric:

• Prices decreasing
• Range increasing
• Charging infrastructure improving
• Government incentives possible
• Resale values stabilizing

Petrol:

• Stable demand short-term
• Potential fuel price increases
• Gradual phase-out post-2030
• Resale values may decline

Diesel:

• Declining demand
• Clean Air Zone restrictions
• Higher depreciation
• Limited new models
• Commercial vehicles only long-term

Conclusion

Overall Winner: Electric (with home charging)

Best Value:

• Short-term (1-3 years): Petrol
• Long-term (5+ years): Electric
• High mileage (25,000+ miles): Diesel

Key Takeaway: Electric vehicles offer the lowest total cost of ownership if you can charge at home. Without home charging, petrol vehicles remain more economical.

Recommendation: Calculate your specific usage pattern, charging availability, and annual mileage before deciding. Use our vehicle cost calculator to compare based on your circumstances.