An EV can cost less than a petrol car over five years, but there is no single answer for every Australian driver. Compare two specific cars using the same distance and ownership period. Include the money lost between purchase and resale as well as running costs; an energy saving is only one part of the result.
Use one consistent cost equation
For an ownership-cost comparison, start with purchase price minus estimated resale value. Add financing interest and fees, energy, servicing, repairs, tyres, insurance, registration and any applicable charges. Include charging installation or other one-off costs you would incur.
Do not add depreciation to the full purchase price without subtracting resale value: that counts the acquisition cost twice. Similarly, if purchase price is already included, add loan interest and fees rather than adding all principal repayments again. A cash-flow budget is useful too, but it answers a different question.
Calculate energy using your charging pattern
For petrol, use kilometres divided by 100, multiplied by litres per 100 kilometres and dollars per litre. For an EV, use the corresponding electricity consumption and price. If consumption is measured at the battery rather than at the wall, account for charging losses.
Weight home and public charging by the energy you expect to buy at each price. Include session or parking fees where relevant. Solar charging can have an opportunity cost if using the electricity means giving up a feed-in payment.
The Australian Government’s EV buying guidance discusses charging access and running costs. Check actual tariffs and charger prices rather than treating all electricity as equally priced.
An illustrative energy comparison
These are hypothetical inputs, not current prices or measured vehicle results: 15,000 kilometres a year for five years equals 75,000 kilometres. At 7 L/100 km and A$2 per litre, petrol costs A$10,500.
At 18 kWh/100 km measured at the wall and A$0.30 per kWh, electricity costs A$4,050 over the same distance. The illustrative energy difference is A$6,450. It is not the total saving, and it changes if consumption, distance or charging price changes.
Replace assumptions with quotes where possible
Obtain insurance quotes for the same driver, address and cover. Use the exact servicing schedules and check tyre costs. EVs still have maintenance and consumables; a drivetrain category does not establish the bill for an individual model.
Check registration, duties, concessions and any road-use obligations through the relevant state or territory authority at the time of purchase. Avoid carrying a historical policy into a current calculation without checking its status.
For a used EV, assess condition and battery warranty terms as part of the vehicle inspection. Do not automatically budget a whole battery replacement simply because the car is electric, or assume a warranty covers every future cost.
Test the uncertain parts
Run low, central and high resale scenarios, and try a greater share of public charging. Keep every assumption dated and visible. If a modest change reverses the result, the decision depends heavily on that uncertainty.
Choose on the complete comparison and practical suitability. The purpose of the calculation is to show what would make one particular vehicle cheaper for your circumstances, rather than declare a universal winner.
Zachary Skinner is the editor of TechDrivePlay.com, where tech, cars and adventure share the fast lane.
A former snowboarding pro and programmer, he brings both creative flair and technical know-how to his reviews. From high-performance cars to clever gadgets, he explores how innovation shapes the way we move, connect and live.
