Why are electric vehicles so expensive?

As the motor industry evolves and moves towards a more sustainable future, electric vehicles are becoming increasingly popular amongst environmentally conscious consumers. 

As part of the global effort to reduce the effects of climate change, the UK government have announced plans for all new cars to be electrified by 2030. If we will all be driving an electric car in the not-so-distant future, why not make the switch sooner rather than later? 

Resistance to change is a natural response, and some people are hesitant to try an electric vehicle as they prefer to stick with what they know. Others are sceptical about the new technology or concerned about the limited driving range of electric cars. However, the price tag attached to electric vehicles is the main obstacle holding many people back from making the switch. Compared to traditional fuel-powered cars, electric vehicles tend to be more expensive to buy or lease.   

If you’re considering investing in an electric vehicle for the first time, you may wonder whether they’re worth the additional expense. In this article, we will learn a little more about how electric vehicles work, their benefits, and why they are more expensive than fuel cars.

How does an electric vehicle work?

When it comes to operation, there is very little difference between driving a fuel vehicle and driving an electric one. But under the bonnet, things look a little different.

An electric vehicle stores electricity in a rechargeable battery pack. For an electric car to function, the battery pack must be charged up by plugging the vehicle into a charging station.

The electricity from the battery then powers the electric motor, which turns the vehicle’s wheels.

The time it takes to charge an electric car fully varies depending on the electric vehicle’s make and model and its battery capacity, as does the range the car can achieve between charges.

Electric vehicles can be charged at home if you have installed a home charger or at a public charging station. As of January 2023, there were over 37,000 public electric charging points in the UK.

What are the benefits of an electric vehicle?

Although electric cars may have a slightly higher price tag for purchase or lease compared to their fuel-powered counterparts, numerous benefits come with driving an electric vehicle, including:

Environmentally friendly – Driving a zero-emissions vehicle will significantly reduce your carbon footprint, helping you to do your bit to protect our planet.

Lower running costs – Whilst an electric vehicle may be more expensive than a fuel vehicle, it is usually cheaper to fuel a car with electricity than with petrol or diesel. This makes an electric vehicle a cost-effective option in the long term.

Superior driving experience – Electric vehicles are usually equipped with modern technology and provide a smooth, quiet, and responsive driving experience.

Less maintenance required – Electric cars have fewer moving parts than fuel-powered cars, so less can go wrong with them! They generally require less maintenance and fewer repairs than fuel-powered cars, providing more cost savings.

Benefits – Several initiatives encourage and incentivise people to choose an eco-friendly electric car over a fuel-powered one. This includes government funding and grants for electric car drivers, lower benefit in kind tax, tax exemptions, and free or priority parking in some public places.

Why are electric vehicles so much more expensive than ICE Cars?

Now we know how electric cars work and the benefits of owning one. But the question we haven’t yet answered is, why are electric cars so expensive?

Several factors drive up the price of electric cars compared to fuel cars.

The main reason is the high cost of the materials needed to build an electric car, particularly the battery. Electric car batteries are made using expensive materials, including lithium and cobalt.

Because electric vehicle technology is relatively new, it still requires much research and development to improve performance, safety, and durability, all driving up the overall cost of electric vehicles.

Electric cars also take a very long time to manufacture, and the supply often doesn’t meet the demand. Low production volumes can lead to high manufacturing costs.

However, although the initial cost of an electric car may be higher than a fuel car, it’s important to consider the long-term savings that could be made on running costs.

How expensive are electric vehicles?

Electric cars are available in many different makes and models, each offering distinct variations in vehicle range, performance, quality, and features.

Because of the great variation in electric cars available on the market, the price of buying one can range from about £24,000 for an electric Fiat 500 or Nissan Leaf, to over £56,000 for a luxury electric car like a Tesla, Porsche, Audi, or Jaguar.

Besides price, there are plenty of other important factors to consider when buying an electric car, including how far you drive regularly, the size of the vehicle you require, and any features or technology that would enhance your driving experience.  

What electric vehicles are on offer at LetsTalk Leasing?

If you’re looking for a smart and affordable way to drive an electric car, leasing one from Let’sTalk Leasing could be the perfect solution for you.

Leasing an electric car means that you can enjoy all the benefits of driving a brand-new and eco-friendly vehicle without having to worry about the high upfront cost, depreciation, maintenance, or resale.

Whether you need an electric car for person or business use, we have an option to suit your needs.

Our lease deal are flexible, affordable, and hassle-free, making it easy for you to join the electric revolution and start saving money on your motoring costs.

Browse our wide range of electric cars to lease and tailor your lease contract to suit your budget and mileage needs. Contact us today by calling us on 0330 056 3331 to learn more about our electric car leasing deals.