I asked chat got to compare two same model cars one petrol and one EV. This is what I got back.
Imagine you’re entirely impartial. Compare the whole life costs of two cars. They’re both the same model of car but one is petrol and one is a BEV version of the same car. Look at every aspect of running costs including the difference in purchase costs, servicing and fuel. At what point would the increased price of the EV be offset by lower running costs. Use cars in the uk as an example and provide the model derivative used.
ChatGPT said:
Great, let's take a real-world example to make the comparison as practical as possible. For this comparison, let's consider the
Volkswagen Golf. It comes in both petrol and fully electric versions, and is a popular model in the UK.
We'll use the following versions:
- Petrol Model: Volkswagen Golf 1.5 TSI (Petrol)
- Electric Model: Volkswagen ID.3 (BEV)
Assumptions for Cost Comparison:
- Initial Purchase Price(2023 prices):
- Volkswagen Golf 1.5 TSI: £25,000
- Volkswagen ID.3: £35,000 (EV premium due to battery technology)
- Annual Mileage: 10,000 miles per year.
- Fuel Efficiency:
- Volkswagen Golf 1.5 TSI: Around 45 mpg (combined)
- Volkswagen ID.3: Around 4 miles per kWh (combined)
- Fuel Costs:
- Petrol Cost: £1.45 per litre (current average in 2023)
- Electricity Cost: £0.35 per kWh (home charging rate)
- Maintenance and Servicing:
- Petrol Car: More complex engine, with services like oil changes, spark plug replacement, etc.
- Electric Car: Fewer moving parts, no oil changes, no exhaust system maintenance, but needs occasional checks for battery health, brake fluid, and tyre wear.
- Insurance: Typically, insurance for an EV tends to be slightly higher due to higher replacement costs, but this can vary.
- Vehicle Depreciation:
- EVs typically depreciate faster in the first few years due to the perception of older battery technology, but this gap is closing.
- Petrol cars have traditionally had better resale value but the gap is narrowing due to growing EV adoption.
1. Initial Purchase Price:
- Petrol: £25,000
- Electric (ID.3): £35,000
2. Fuel Costs per Year (10,000 miles)
Petrol:
- 10,000 miles ÷ 45 mpg = 222.2 gallons of fuel per year
- 1 gallon = 4.546 litres (UK gallons)
- Fuel consumption = 222.2 x 4.546 = 1010.1 litres per year
- Cost = 1010.1 x £1.45 = £1,464 per year
Electric:
- 10,000 miles ÷ 4 miles per kWh = 2,500 kWh of electricity per year
- Cost = 2,500 x £0.35 = £875 per year
3. Servicing and Maintenance Costs per Year
Petrol:
- Typical petrol car servicing costs around £200-£300 per year, with additional costs for oil, spark plugs, and exhaust system maintenance.
- Let’s estimate an average annual cost of £250 for servicing and maintenance.
Electric:
- EV servicing is typically cheaper due to fewer moving parts. Annual servicing might be £150-£200, mainly for checking the brakes, suspension, and battery health.
- Let’s estimate an average annual cost of £175 for servicing and maintenance.
4. Insurance Costs per Year
- Petrol cars: £600
- Electric cars: £650 (slightly higher due to higher repair/replacement costs)
- Difference: £50 more per year for the EV
5. Depreciation
- Petrol cars generally lose around 50% of their value after 5 years.
- EVs can lose around 60% of their value in the same period due to early adoption and battery life concerns (although this gap is closing).
- Based on the initial purchase prices, we can estimate the depreciation over 5 years.
Petrol:
- Depreciation after 5 years = £25,000 x 50% = £12,500 lost in value
Electric:
- Depreciation after 5 years = £35,000 x 60% = £21,000 lost in value
Total Running Costs Over 5 Years:
| Cost Category | Petrol (Golf 1.5 TSI) | Electric (ID.3) |
|---|
| Initial Purchase Price | £25,000 | £35,000 |
| Fuel (5 years) | £7,320 | £4,375 |
| Servicing (5 years) | £1,250 | £875 |
| Insurance (5 years) | £3,000 | £3,250 |
| Depreciation | £12,500 | £21,000 |
| Total Cost Over 5 Years | £48,070 | £64,500 |
Cost Difference After 5 Years:
- Petrol Car: £48,070
- Electric Car: £64,500
When Will the EV’s Lower Running Costs Offset the Higher Purchase Price?
- The EV has a higher initial purchase price of £10,000, but its lower fuel costs and lower servicing costsgive it a saving of:
- £1,464 (petrol fuel) - £875 (electric fuel) = £589 saved per year in fuel.
- £250 (petrol servicing) - £175 (electric servicing) = £75 saved per year in servicing.
That’s a total of £664 saved per year in running costs.
Now, if you subtract the £10,000 initial cost difference, you can calculate when the savings from fuel and servicing will offset the EV's premium:
- £10,000 ÷ £664 = 15.1 years.
So, in this example, it would take about
15 years for the EV to make up for its initial price difference in terms of fuel and servicing savings.
Conclusion:
While the electric vehicle is more expensive upfront, it makes up for the higher purchase price through lower fuel and servicing costs. However, this "break-even" point in this case comes at around
15 years, which is quite a long time, especially considering that battery technology may have improved by that point, possibly making the EV’s value drop faster due to older technology. If you plan to keep the car for more than 10 years, the EV might become a better option in the long run, especially considering any potential government incentives for EVs and future trends in energy prices.
If you're someone who drives more than the average mileage per year, or plans to keep the car longer, this might be a factor to consider. Otherwise, the upfront cost and depreciation can make the petrol version a more sensible option for many people in the shorter term.
