Electric cars not cheaper says study

Electric cars could work out to be more expensive to conventional petrol vehicles, according to new research. While carmaker Nissan has said that running costs for its new environmentally friendly Nissan Leaf will be as low as 1p a mile, a rival car firm has said that over three years, electric cars could run up higher bills than their petrol counterparts.

The figures were given to the BBC by carmaker Mitsubishi, which also makes an electric car. It says that a rapid depreciation rate as well as high initial purchase prices makes electric cars financially uncompetitive. Over three years, for example, an electric car would cost its owner £10,572 without insurance. A petrol vehicle could be as much as £400 a year cheaper, according to Mitsubishi.

Charging up an electric car from a domestic supply costs a relatively low one or two pence per mile. Road tax is also free for such vehicles and servicing costs are lower than those of a petrol car. Electric cars purchased in the UK from January next year will also receive a £5,000 subsidy from the government.

But according to the study, even these benefits may not be enough to make electric motoring more financially rewarding and some experts predict that the overall costs will be even higher. Batteries for such vehicles, for example, are very expensive and eventually need replacing. This may, therefore, lead to very quick depreciation.

Mitsubishi has admitted that its i-miev electric model may depreciate rapidly by as much as £15,000 in the first three years. The carmaker has made the move, however to guarantee their batteries for 62,500 miles and say they should work at least partially for 100,000 miles.