Electric vehicles have a higher purchase price than comparable petrol cars — but is the total 5-year cost actually lower? The answer depends on how you use your car and where you live.
Purchase Price Premium
The average EV in Australia currently costs $15,000–$30,000 more than a comparable petrol vehicle. For a mid-size SUV, that gap is closing — but it's still significant at the point of purchase.
Fuel Costs: The Biggest Swing Factor
At current prices, charging an EV at home costs roughly 3–5 cents per kilometre. A comparable petrol car at current fuel prices costs 12–18 cents per kilometre. Over 15,000km per year, that's a saving of $1,350–$2,000 annually.
If you charge primarily at public fast chargers, the economics worsen significantly. The savings story works best for drivers with home charging access.
Servicing and Maintenance
EVs have dramatically fewer moving parts. No oil changes, no transmission service, no exhaust repairs. Studies suggest EV servicing costs are 30–40% lower than petrol equivalents over five years.
Depreciation — The EV Wildcard
This is where EVs currently struggle. Rapid technological improvement means today's EV can feel outdated quickly. The used EV market in Australia is still immature, making resale values harder to predict. Early-generation EVs have seen significant depreciation as newer, longer-range models enter the market.
Government Incentives
The Australian federal government's Fringe Benefits Tax (FBT) exemption for eligible EVs is a major advantage for salary packaging. State-level incentives vary — check your state government's current offering.
The Verdict
For high-kilometre drivers with home charging, EVs are likely cheaper over 5 years despite the higher purchase price. For low-kilometre drivers or those relying on public charging, the economics are closer to breakeven. The depreciation risk is the biggest unknown.
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