How Much Can You Save by Switching to an Electric Car – Electric Vehicle

Switching to an electric vehicle (EV) can lead to significant savings on running costs compared to a petrol or diesel car. You can save up to 70% on fuel costs and 40% on maintenance, potentially saving hundreds of dollars annually, according to Transport for NSW. 

An average Australian who drives around 12,000 km per year and spends $2,500 on petrol could save significantly by switching to an EV. The average annual charging cost for an EV in this scenario is estimated to be around $500, with potential further savings through solar or off-peak charging. 

Potential Savings When Switched to Electric Car and EVs

Making the switch to a new EV can lead to major cost savings over time. With lower fuel and maintenance costs, government rebates, and expanding EV charger installation across Australia, electric cars are cheaper to run than petrol vehicles. Here’s where you can save a lot.

Fuel Savings

One of the biggest advantages of owning a new EV is the dramatic reduction in fuel costs compared to internal combustion engine vehicles. On average, electric cars are cheaper to run, offering savings of up to 70 percent on fuel alone over the life of the vehicle.

EV vs Petrol Cost Comparison:

• Petrol car: Costs around $12–$15 per 100 km, depending on fuel prices.
• Electric car: Costs as low as $3–$5 per 100 km when charged at home.
• Even lower with solar energy, potentially reducing cost to cents per km.
• EVs have fixed electricity costs, avoiding petrol price spikes.

For the average Australian, who drives around 13,000 km per year, this translates into hundreds—if not thousands—of dollars saved annually. So whether an electric car is your first new vehicle or an upgrade, the fuel savings alone can help you save a lot over time.

Maintenance Costs

Another area where electric cars are cheaper is maintenance. Traditional petrol and diesel cars have hundreds of moving parts, many of which wear out and need regular attention. EVs, on the other hand, are far simpler mechanically.

With no engine oil, fewer fluids, and minimal wear on brakes (thanks to regenerative braking), maintenance for a new EV is far less frequent and often less expensive. Over several years of ownership, EV owners can expect significantly lower service bills compared to their internal combustion counterparts.

Also, with the rising demand for EVs in the car market, more certified EV service centres are emerging across Australia—making it even easier to keep your new EV running efficiently.

Government Incentives

Government support plays a major role in reducing the upfront costs of buying a new EV. In New South Wales, several incentives and subsidies are available that make electric cars cheaper and more accessible.

Key NSW EV Incentives:

• Stamp Duty Exemption: No stamp duty on new EVs under $78,000.
• $3,000 Rebate: Available for the first 25,000 eligible EVs under $68,750.
• Free Access to Tolls & Bus Lanes: Pilot programs in some areas to promote EV adoption.
• Public Charging Infrastructure Funding: Expanding fast-charger networks statewide.

These incentives, combined with long-term fuel and maintenance savings, help offset any concerns about battery raw materials or higher upfront prices. For many drivers, it makes buying an EV a financially smart move in today’s car market.

Things to Consider When Planning to Switch From Gas Cars to Electric Vehicle

Vehicle Type

When you buy an electric vehicle, you’ll find a growing selection of models available in the car market—from compact hatchbacks and sedans to SUVs and utes. Whether you’re eyeing a Tesla Model 3 or a plug-in hybrid, there’s an EV to suit most lifestyles. The average Australian drives around 36 km per day, which many new EVs can handle easily.

EVs also offer instant torque and a smoother driving experience than their internal combustion engine counterparts. Be sure to assess your daily driving needs and typical routes when choosing a model.

Range and Battery

Battery technology in EVs is improving rapidly, with battery storage and miles of range increasing across newer models. However, battery degradation still occurs over the life of the vehicle, which can affect range over time. The average Australian drives relatively short distances, so even a modest-range EV may suffice.

Still, for long road trips, consider the charging infrastructure available. Unlike traditional internal combustion vehicles, owning an electric vehicle means understanding how far you can go on a fully charge, especially in rural areas where chargers may be scarce.

Charging Options

Electric vehicle charging can be done at home, work, or public stations. Installing a Level 2 charger at home is ideal for most EV drivers, especially those using solar energy to offset their electric bill.

Public charging varies in availability and speed—from standard AC chargers to DC fast chargers, which can recharge a vehicle in under an hour. Charging costs can range from cents per kWh at home to higher rates in public. Understanding your options and the cost per km to fully charge your EV is crucial to planning your switch.

Costs

While buying an EV may have a higher upfront cost than internal combustion engine cars, they are often cheaper to run over time. With lower maintenance costs for electric vehicles and the cost of fuel (electricity) significantly lower—especially with savings of up to 70% in costs per 100 km—the total electric car costs are often less over years of ownership.

You can also benefit from EV tax incentives and rebates offered through Australia’s Electric Vehicle Council. Depreciation is still a consideration, but as demand for EVs grows, resale values are becoming more stable for new and used models.

Ownership Models

Whether buying an EV outright or choosing to lease, it’s important to evaluate what’s best for your financial situation. Leasing may lower upfront costs and reduce depreciation risks. Owning an electric vehicle typically includes lower service needs compared to internal combustion engine cars—fewer fluids, brakes that last longer due to regenerative braking, and minimal engine wear.

Be sure to research local electric vehicle charging access, warranty terms, and whether service centres nearby support your new car. Overall, driving an EV offers significant environmental benefits, helping to reduce greenhouse gas emissions while saving money on fuel and maintenance.

Is It Worth Switching to an EV?

CSwitching to an EV is increasingly worth it, especially with rising fuel prices and growing environmental concerns. When you buy an electric car, you benefit from lower service costs compared to internal combustion engine vehicles. According to the Electric Vehicle Council, EVs offer long-term cost savings, with a lower cost per kilometre and fewer moving parts to maintain.

Plus, it’s cheaper to charge your EV than to fuel a gas car. So, how much money do you save with an electric car? Quite a bit—especially over time. If you’re ready to cut fuel costs and emissions, now’s the time to switch.

Need a reliable EV charging solution in Sydney? We specialise in residential and commercial EV charger installation—get in touch today for a fast and professional service. Call us at (02) 9100 0782

FAQs

What are the main cost components of charging an electric vehicle?

Charging costs include electricity rates (flat, time-of-use, controlled load, or EV-specific tariffs), the type of charger used (home AC, public AC, or DC fast charging), and any demand or idle fees at public stations. Home charging is cheapest, especially with solar, while public fast chargers cost more, typically 40–70c/kWh.

How do off-peak tariffs benefit EV owners?

Off-peak tariffs allow EV owners to charge at significantly lower electricity rates, usually overnight or early morning, reducing charging costs by up to 50%. This lowers monthly energy bills, eases grid demand during peak times, and can increase use of cleaner energy sources like wind and solar.

What are the long-term maintenance savings of electric vehicles?

EVs save about 40–50% on maintenance costs compared to petrol cars due to fewer moving parts, no oil changes, and regenerative braking that extends brake life. These savings accumulate over the vehicle’s life, making EV ownership cheaper to maintain.

How do tax incentives and rebates impact the overall cost of EV ownership?

Tax incentives and rebates reduce upfront costs via exemptions or discounts on stamp duty, registration, and luxury car tax. Some regions offer zero-interest loans. These incentives can save thousands, making EVs more affordable and offsetting their higher purchase price.

Are there any hidden costs associated with public EV charging stations?

Yes, public chargers may have higher per kWh rates (40–70c), idle fees ($0.50–$1/min) if you stay connected after charging, and sometimes time limits on free charging. Rapid DC chargers cost more but offer faster charging. These can add unexpected expenses compared to home charging.