The move to electric vehicles is continuing at a pace. Not least because of unstable fuel costs that saw pump prices hit the £2 per litre mark over the last 12 months.

While prices have dropped, they are beginning to rise again. Then, on top of this, you have the prospect of the 2035 ban on all new petrol and diesel vehicles.

 

If you’re thinking of ditching diesel or parting with petrol in favour of an electric vehicle (EV), then Forbes have reviewed the best options out there for affordability.

In a recent poll by WhatCar? magazine, more than half of drivers said they were put off from switching to EVs because they’re too expensive.

Regardless, business is booming for EV manufacturers. More than 170,000 new EVs rolled off production lines during the first half of 2023 – setting a new record, according to data from the Society of Motor Manufacturers and Traders (SMMT).

Their affordable EVs index ranks the top 10 motors according to their average lease, charging and car insurance costs, as follows:

  • Average car lease cost (annually): Forbes Advisor analysed leasing costs, due to lower monthly payment fees on new cars. The total cost of leasing an electric car for one year has been taken into consideration plus monthly payments, and other fees.
  • Annual car insurance cost: This is the cost of insuring an electric car for one year.
  • Annual servicing fees: Forbes Advisor analysed servicing costs to determine annual fees.
  • Annual charging costs: This is the estimated cost of charging an electric car for one year, based on the average electricity rate in the UK.

The 10 Most Affordable Electric Vehicles

Ranking Car Model Car Manufacturer Annual Cost of Leasing Annual Cost of Insuring Annual Estimated Charging Costs Annual Service Cost Annual Cost to Run
1 Fiat 500e Fiat £4,070 £500 £451 £116 £5,137
2 MG ZS EV MG £3,900 £550 £592 £199 £5,241
3 Nissan Leaf Nissan £4,620 £750 £525 £179 £6,074
4 MG5 EV MG £4,800 £700 £548 £120 £6,168
5 MINI Electric MINI £5,136 £650 £511 £195 £6,492
6 Volkswagen ID.3 Volkswagen £5,004 £800 £518 £195 £6,517
7 Kia e-Niro/Niro EV Kia £4,908 £1000 £503 £110 £6,521
8 Renault Zoe Renault £5,520 £600 £488 £135 £6,743
9 Hyundai Kona Electric Hyundai £5,268 £850 £511 £129 £6,758
10 Polestar 2 Polestar £6,720 £900 £474 £199 £8,293

1. Fiat 500e

Annual running costs: £5,137

  • Annual Leasing Cost: £4,070
  • Annual Insurance Cost: £500
  • Yearly Charging Cost: £451
  • Annual Servicing Cost: £116

Fiat’s 500e tops the index with its annual leasing costs of £4,070, annual insurance costs of £500, annual charging costs of £451 and annual servicing costs of £116.

The electric iteration of the stylish Italian hatchback has a stated range of up to 199 miles and is significantly cheaper to fuel than its petrol and diesel counterparts, based on an average annual mileage of 7,400 miles.

2. MG ZS EV

Annual running costs: £5,241

  • Annual Leasing Cost: £3,900
  • Annual Insurance Cost: £550
  • Yearly Charging Cost: £592
  • Annual Servicing Cost: £199

MG’s ZS EV comes in a close second in the Forbes index with annual leasing costs of £3,900, annual insurance costs of £550, charging costs of £592 and servicing costs of £199.

The SUV has a stated range of 273 miles and charges from 10 to 80% in 42 minutes using a 100kW rapid charger.

3. Nissan Leaf

Annual running costs: £6,074

  • Annual Leasing Cost: £4,620
  • Annual Insurance Cost: £750
  • Yearly Charging Cost: £525
  • Annual Servicing Cost: £179

Nissan’s Leaf comes with an annual leasing cost of £4,620, annual insurance costs of £750, yearly charging costs of £525 and annual servicing costs of £179.

The electric family car has a stated range of up to 168 miles and charges from 20 to 80% in around one hour.

4. MG5 EV

Annual running costs: £6,168

  • Annual Leasing Cost: £4,800
  • Annual Insurance Cost: £700
  • Yearly Charging Cost: £548
  • Annual Servicing Cost: £120

The second EV from MG in the index has an annual leasing cost of £4,800, annual insurance costs of £700, annual charging costs of £548 and annual servicing costs of £120.

The estate car has 1367 litres of space in the boot and a stated range of 250 miles.

5. MINI electric

Annual running costs: £6,492

  • Annual Leasing Cost: £5,136
  • Annual Insurance Cost: £650
  • Yearly Charging Cost: £511
  • Annual Servicing Cost: £195

MINI’s take on the EV carries annual leasing costs of £5,136, annual insurance costs of £650, yearly charging costs of £511 and annual servicing costs of £195.

The iconic hatchback does 0-62mph in just over 7 seconds and has a stated range of 145 miles.

6. Volkswagen ID.3

Annual running costs: £6,517

  • Annual Leasing Cost: £5,004
  • Annual Insurance Cost: £800
  • Yearly Charging Cost: £518
  • Annual Servicing Cost: £195

The VW ID.3 has annual leasing costs of £5,004, annual insurance costs of £800, yearly charging costs of £518 and annual servicing costs of £195.

Volkswagen’s ID.3 hatchback has a stated range of 266 miles and will charge to 80% from a 150kW public ultra rapid charger in 37 minutes.

7. Kia e-Niro

Annual running costs: £6,521

  • Annual Leasing Cost: £4,908
  • Annual Insurance Cost: £1000
  • Yearly Charging Cost: £503
  • Annual Servicing Cost: £110

Kia’s e-Niro has annual leasing costs of £4,908, annual insurance costs of £1,000, yearly charging costs of £503 and annual servicing costs of £110.

This Korean SUV has a stated range of around 285 miles.

8. Renault Zoe

Annual running costs: £6,743

  • Annual Leasing Cost: £5,520
  • Annual Insurance Cost: £600
  • Yearly Charging Cost: £488
  • Annual Servicing Cost: £135

The Renault Zoe has annual leasing costs of £5,520, annual insurance costs of £600, yearly charging costs of £488 and annual servicing costs of £135.

The French hatchback has a stated range of 239 miles and will cover 90 miles when  charged for 30 minutes using a public 50kW charger.

9. Hyundai Kona Electric

Annual running costs: £6,758

  • Annual Leasing Cost: £5,268
  • Annual Insurance Cost: £850
  • Yearly Charging Cost: £511
  • Annual Servicing Cost: £129

Hyundai’s Kona Electric carries annual leasing costs of £5,268, annual insurance costs of £850, yearly charging costs of £511 and annual servicing costs of £129.

The crossover SUV from Hyundai has a stated range of 300 miles and charges from 10 to 80% in 47 minutes using a 100kW charger.

10. Polestar 2

Annual running costs: £8,293

  • Annual Leasing Cost: £6,720
  • Annual Insurance Cost: £900
  • Yearly Charging Cost: £474
  • Annual Servicing Cost: £199

The Polestar 2 has annual leasing costs of £6720, annual insurance costs of £900, yearly charging costs of £474 and annual servicing costs of £199.

The saloon from the lesser-known brand has a stated range of 330 miles and charges from 10 to 80% in 34 minutes using a 145kW charger.

Holding value

When considering the price of an EV bought outright, resale value should also be factored in. Forbes ranks the top seven EVs you can buy based on their average resale value after three years of depreciation.

Owners of both the Fiat 500e and MINI electric can expect to recoup, on average, 59% of their initial outlay after three years.

Ranking Model Manufacturer Average depreciation value after 3 years Car Price Starting Point
1 Fiat 500e Fiat 41% £23,495
1 MINI Electric MINI 41% £32,550
3 Renault Zoe Renault 42% £29,995
4 MG ZS EV MG 43% £30,440
5 Nissan Leaf Nissan 45% £28,440
5 MG5 EV MG 45% £30,995
5 Tesla Model 3 Tesla 45% £42,990

The Fiat 500e and the MINI Electric demonstrate ability to retain a significant portion of their original value, making them highly attractive options for buyers concerned about long-term value retention. The Fiat 500e’s quirky design and the MINI Electric’s fun-to-drive nature have contributed to their desirability.

Choosing for you

As electric cars gain increasing popularity in the UK due to their environmental benefits, it’s essential to make well-informed decisions when it comes to car insurance for these eco-friendly vehicles. Several factors need consideration, including insurance premiums, repair costs, and theft rates, all specific to electric cars.

Beyond affordability, there are other essential factors to consider when choosing an electric car. The range of the vehicle, determined by the distance it can travel on a single charge, is crucial, particularly for those who frequently engage in long-distance driving. Additionally, the size of the battery plays a role in the range, with larger batteries offering more extended driving distances but often coming at a higher cost.

Another crucial consideration is the availability of charging stations in your area. Living in an area with good charging infrastructure ensures convenient charging, while limited access to charging points might require careful planning for longer journeys. For those looking to identify if there is an abundance of car charging points among certain routes, you can look to various online tools such as Zap-Map and Pod-Point.

Choosing the right car insurance and considering key factors when purchasing an electric vehicle will help you enjoy the perks of eco-friendly transportation while making a positive impact on the planet. So, take the time to research, compare and choose wisely.

By thoughtfully evaluating insurance costs alongside these vital factors, you can make a well-rounded and sustainable choice when selecting an electric vehicle.