Electric Car Driving Becomes “Free” in the UK Today
At The Electric Car Scheme, we have revealed a crossover day when a petrol driver spends more on fuel than an electric driver will all year.
We have analysed the annual fuel costs for the average UK driver travelling 7,400 miles a year - estimated to be £1,268 for petrol drivers and £680 for electric car drivers. That means a petrol driver will have spent more on fuel by the middle of July than an EV driver will all year. This is also dependent on your model of EV and when you charge it, in fact with a Tesla Model Y Long Range charged on an off-peak tariff, you could hit this point as early as March 10th.
The equivalent day for carbon emissions is March 5, when a petrol car will have caused more carbon emissions than an electric car will for a whole year of driving and power consumption. While the UK’s power grid retains fossil fuels EV driving will not be 100% emissions-free, but as more and more renewables are added to the grid that day will move earlier and earlier.
We have dubbed the 15th of July as ‘Electric Car Day’ to highlight how much more affordable electric cars are, with average EV drivers essentially enjoying five free months of driving.
Since fuel prices and the energy price cap are variable, the day is not static every year. With electricity prices higher in 2023, it fell on August 1 – meaning EV drivers have saved even more on fuel in 2024. The amount of CO2 saved by EV drivers has also increased, with the share of electricity being generated by renewable sources increasing in the past year, meaning fewer total emissions, and pollution, compared to petrol cars.
Thom Groot, CEO and Co-Founder of The Electric Car Scheme, commented:
“For the rest of the year, electric car drivers can be safe in the knowledge that petrol drivers have already spent as much as they will all year to drive. This is on top of knowing that since early March, EV drivers have been effectively driving emission-free when compared to traditional cars, not to mention the vast amounts of pollution taken out of our villages, towns and cities and the health benefits that it brings”
“It’s well known that driving an EV brings down your fuel costs and emissions, but it’s not always the easiest thing to visualise, which is why we came up with the idea of the “electric car day” to show just what a huge impact making the switch can have. Not only that, but as this is the second year we are celebrating, we can see this impact is growing as electricity prices fall and more of it comes from renewable sources”
“We know that upfront costs remain higher for electric cars and that this is the biggest barrier to entry for the majority of Brits, which is why we created The Electric Car Scheme to get more drivers behind the wheel of one affordably. The scheme works with salary sacrifice so drivers get savings of up to 60% on a lease – a bit like the Cycle to Work scheme, but for electric cars.”
The AA President, Edmund King commented:
“Upfront costs remain relatively high for EVs, but with prices coming down and running costs consistently falling, it could be the time for a new cohort of people to consider their long-term options and see if an electric car is right for them. The data shows a clear delineation in the relative costs and environmental impacts of driving a petrol car which is hard to ignore, especially as the date creeps ever earlier in the year.”
Can Britain afford to be more sustainable?
We recently published a blog addressing this difficult question. As the cost of living crisis intensifies, many people cannot afford to make changes that lead to significant financial savings, despite the growing interest in sustainability. Sustainable choices often remain out of reach for low- or middle-income families, widening the socio-economic divide regarding access to sustainable living options. Government initiatives like green car schemes and salary sacrifice programs are making sustainable choices more accessible.
You can read more about the issues faced in Britain and what is being done to help people make more sustainable choices in our article: Can Britain afford sustainability?
Used electric car salary sacrifice is the most affordable way to drive an EV
At The Electric Car Scheme, we continually strive to improve our offerings and encourage more people to make sustainable choices. This is why we have expanded our services to include used electric car salary sacrifice. This option makes switching to an electric car more affordable than ever.
Employees with a salary of £30,000 can access popular EV models like the Nissan LEAF, Volkswagen ID.3, and MG4 for less than £250 a month through our salary sacrifice scheme. This is possible because the lease cost is deducted from their gross salary, saving on national insurance and income tax, and ultimately reducing the overall tax burden. EV salary sacrifice schemes, like The Electric Car Scheme, are particularly appealing due to their low benefit-in-kind tax rates for electric cars, allowing employees to enjoy driving a new EV at a reduced overall cost compared to traditional car leases or purchases.
As shown above, the starting lease price of a used Tesla Model Y is lower, meaning you pay less overall due to the applied savings. For a new car, the savings are greater because the original lease price is higher. Leasing a new EV will cost you £612, whereas leasing a used Model Y will cost £447. This results in nearly £200 in savings by choosing a used EV.
If you would like to view all of the electric cars we have available (both new and used) and get a personalized quote based on your salary, lease term, and annual mileage, visit our quote tool. It’s easy to use and provides a breakdown of how much you will be saving every month.
At The Electric Car Scheme, we aim to promote and empower people to make sustainable choices. Switching to an electric car is one of the most significant ways to positively impact net zero emissions. A salary sacrifice car scheme makes this transformation possible, allowing employees to save between 30% and 60% on any electric car by reducing their salary in exchange for an electric vehicle as a benefit. At The Electric Car Scheme, we offer a range of both used and new electric cars to choose from, with used options being the most affordable way to go electric.
Every company in the UK can support their employees on their journey to net zero emissions. For this benefit to be universally appealing, it must be a ‘no-brainer.’ That’s why The Electric Car Scheme is at no cost to employers to set up and run. Our Complete Risk Protection package provides reassurance, ensuring employers are protected from day one. Whether it’s due to redundancies, resignations, long-term sickness, or family-friendly leave, this market-leading protection sets us apart from other offerings.
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Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
