According to a recent report in The Guardian, there are currently 180,000 electric vehicles on Australian roads, more than half of which were purchased in 2023.
While the Tesla Model 3 might be the most popular brand right now, the likes of BYD, Hyundai, MG and Volvo are all starting to make an impression on the marketplace in their own right.
As the global EV car fleet is set to hit 17 million this year, more people than ever are considering switching from petrol cars to electric vehicles.
If this is something you are weighing up, it is worth taking a moment to understand the true costs and benefits of them. That is why we have written this post.
How Much Do New Electric Cars Cost in Australia?
Recently, figures published in Cars Guide revealed that the average drive-away price for a selection of brand-new, fully electric cars in Australia.
They range from around $44,990 for the MG ZS EV to a whopping $770,000 for the top-of-the-range Rolls-Royce Spectre.
According to Which Car? electric vehicles were generally more expensive to purchase in Australia at the beginning of 2024, than a similar class diesel- or petrol- powered car. However, in recent times, some models are achieving ‘price parity’ with high-spec ICE cars.
Where there is still a disparity overall, it is important to note two things. Firstly, this elevated price is due to companies wanting to receive an immediate return on their investment, having spent millions of dcollars on research and development.
Secondly, these prices are, on average, coming down. Last year, Ford slashed up to $5,900 off the asking price for their Mustang Mach-E models.
As we move toward 2025, it is not too unreasonable to think that other companies will follow suit, particularly as new players from countries like Poland are entering the market.
What are the benefits of an EV Car?
Before you baulk at the potential higher cost of buying a brand new electric vehicle, it is worth noting that they do provide you with significant benefits.
The most obvious is reduced fuel costs. According to research recently published by Compare the Market, the average Australian driver spends $62 every week on petrol, which equates to around $3200 every year.
Millennials fill up most at the bowser every week, averaging out at $78, while Boomers only fork out $38. Although these figures will depend on factors such as where they live and, if they are in latter group, whether they are retired or not.
Another main benefit to buying an electric vehicle is that in comparison to petrol cars they require virtually no maintenance. The motor, battery, and associated electronics do not require servicing anywhere near as often as the various parts of an internal-combustion engine motor do.
Additionally, there are much fewer fluids, such as engine oil which need to be regularly maintained. Therefore, not only can this save you a significant amount of money every year through servicing costs, but it can also provide you with other benefits.
One of them is that ownership of an EV eliminates the hassle of having to get your car serviced every 6 months or 10,000 km as most mechanics recommends. The other is that you are less susceptible to unscrupulous mechanics who might seize the opportunity to charge you extra for maintenance or replacement parts that are not required. (However, it is worth noting they can still try and do this to electric cars).
Other benefits include higher efficiency, greater fuel security, reduced traffic noise and the fact they have zero exhaust emissions.
State Government Incentives
Talking of zero exhaust emissions, in an effort to meet the federal government’s zero emissions target for 2050, the Queensland state government has introduced an incentive whereby you can receive a $6,000 subsidy if you buy a new electric vehicle priced up to $68,000.
To be eligible you will need to earn a taxable income of equal to or less than $180,000. Additionally, you will also get discounted stamp duty and car registration fees, which make purchasing a brand-new EV model more affordable.
In the next year or so, other state governments might follow suit.
Regular Costs of EV Ownership
If you are interested in purchasing an electric vehicle, your initial outlay will depend on which type of car you buy.
However, regardless of that price, it is important to consider what your ongoing costs might be over your lifespan with the car. (As opposed to a petrol alternative).
Here are some factors to consider:
Cost per KM comparison
Claims by the Electric Vehicle Council in Australia suggest that it is about 70% cheaper to power an EV than a petrol or diesel internal combustion engine car.
In real terms, this equates to about a $1600 saving on fuel costs, primarily because the cost of EV charging stations is much cheaper than petrol stations.
Estimates by the Electric Vehicle Council suggest that it costs $1.50 a litre to fill up an internal-combustion engine vehicle, as opposed to just 0.33c per litre for an EV.
However, the likes of NRMA and Jolt offer free, fast electric charging at several locations. So, you can even top up your battery levels without having to fork out a cent.
Moreover, if you have solar polars in your home which enables you to store electricity, you will also be able to effectively power your EV for free.
Registration
Currently, the cost of registration and insurance is similar for both electric vehicles and petrol/diesel cars.
That said, as mentioned, Queensland as mentioned, have started to introduce cheaper registrations for electric cars to help meet the federal government’s zero emissions target.
Insurance
Until recently, the cost of insuring an electric vehicle has been higher than that of a petrol or diesel car.
Some of the reasons why include greater costs associated with electric car batteries and importing other parts of the vehicle, and a lack of qualified EV repairers and centres.
However, as more people are buying EVs and the pool of centres and repairers is growing, this cost is becoming more in line with that of petrol and diesel motors.
Should I buy an electric car?
Ultimately, the question of whether you should buy an electric car or not comes down to your personal circumstances.
You will need to weigh up several factors, including whether you can afford the initial outlay and the ongoing running costs.
However, you will also need to determine how owning one will affect your day-to-day life. For instance, how many kilometres do you drive in a week, how far is the nearest charging station to where you live and what is its resale value?
Once you have considered this, you will arrive at your answer.
