General News
7 August, 2025
Survey: EVs cost less to run than petrol and hybrid cars
MOTORISTS could save over $1000 a year on car running costs and loan repayments by choosing an EV as their next car purchase, according to new analysis by Compare the Market.
The annual running cost study between three similarly priced medium SUVs found those who choose the Toyota RAV4 Hybrid could save up to almost $1000 per year ($1034.25) in fuel costs compared to the petrol-only Mitsubishi Outlander ($2247.75).
Opting for the full electric BYD Sealion 7 could save Australians up to nearly $1500 per year ($778.08, when charged at home on the average single tariff electricity plan).
However, while EVs are generally more expensive to comprehensively insure, the average quoted premium for the BYD ($1840.25) was on par with the Mitsubishi ($1827.10) and even undercut the Toyota ($1978.27).
Average servicing and registration running costs for the electric car were also in line with petrol and hybrid models – but some lenders offered discounted interest rates for certain hybrid and electric vehicles.
Compare the Market’s economic director David Koch said the growing choice of electrified models meant Australian car buyers could better access cheaper-to-own vehicles amid cost-of-living pressures.
“Owning a car can be expensive, but our research shows that choosing a more fuel-efficient hybrid or full electric model can help to significantly reduce some costs,” he said.
“With new brands delivering greater choice and supply of hybrids, I think more motorists will be looking to green vehicles as a cost-effective next-car option.
“Not only do EV owners save on petrol, they may also be eligible to take advantage of green loan offers from banks that can help reduce repayments and save on interest. Regular loan rates and green loan interest rates could vary as much as 2.5 per cent.
“If you’re looking at a novated lease, eligible employees and business owners can take advantage of the government’s fringe benefits tax exemption for select electric cars – which could mean saving hundreds in your back pocket.
“But there’s one big snag all owners do need to look out for, and that’s insurance. We found a difference of thousands of dollars between premiums for all three car models.
“Be sure to always shop around for a better deal – whether it’s for fuel, electricity or car insurance. Don’t drive yourself into higher prices.”
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