The sticker price comparison between EVs and petrol cars misses the point. Cars are 5–10 year financial commitments where fuel, servicing, insurance, and depreciation dwarf the purchase price difference. When you compare total cost of ownership — everything you spend over the vehicle's life — the picture looks very different from the showroom floor.
EV purchase prices have fallen dramatically and are approaching parity with petrol equivalents in most segments:
| Segment | Petrol equivalent | EV option |
|---|---|---|
| Small car | Toyota Yaris ~$28,000 | BYD Dolphin ~$38,000 |
| Medium SUV | Toyota RAV4 ~$45,000 | BYD Atto 3 ~$48,000 |
| Large SUV | Toyota Highlander ~$60,000 | Tesla Model Y ~$65,000 |
| Premium sedan | BMW 3 Series ~$75,000 | Tesla Model 3 LR ~$72,000 |
The average typical driver covers 13,000km/year. Cost comparison:
Petrol car (8L/100km at $2.10/L): 13,000 × 0.08 × $2.10 = $2,184/year
EV (18kWh/100km charged at home off-peak $0.15/kWh): 13,000 × 0.18 × $0.15 = $351/year
Annual fuel saving: $1,833
Over 7 years: $12,831 saved on fuel alone.
US equivalent (10,000 miles/year, $3.50/gallon, 28mpg vs 0.3kWh/mile at $0.14/kWh):
EVs have far fewer moving parts than petrol vehicles. No oil changes, no transmission fluid, no timing belt, no spark plugs, no exhaust system — and regenerative braking means brake pads last 2–3× longer.
Typical annual servicing costs:
Over 7 years, EV owners save approximately $2,000–$3,500 in servicing costs.
EV insurance costs have historically been 5–15% higher than equivalent petrol vehicles due to higher repair costs when accidents occur. This gap is narrowing as insurers gain more data and repair networks mature. For most buyers, insurance costs are roughly equivalent.
EV depreciation has been volatile as the market matures rapidly. Early EVs (2018–2020) depreciated quickly as newer, better-range models arrived. More recent EVs are holding value better as the market stabilises. Petrol cars have more predictable depreciation curves. For most buyers, depreciation is broadly comparable between EV and petrol equivalents in 2026 — though data is still evolving.
Using Toyota RAV4 vs BYD Atto 3 as a representative comparison (the market):
| Cost item | RAV4 Petrol | BYD Atto 3 EV |
|---|---|---|
| Purchase price | $45,000 | $48,000 |
| 7-year fuel cost | $15,288 | $2,457 |
| 7-year servicing | $4,200 | $1,500 |
| Registration/duties | $4,500 | $2,500 (EV discounts) |
| 7-year total | $68,988 | $54,457 |
| EV saves over 7 years: | $14,531 | |
EVs aren't right for everyone in 2026:
For most drivers in urban and suburban areas who can charge at home, EVs are clearly cheaper over any period exceeding 3–5 years. The purchase price premium is real but is recovered in fuel and servicing savings well within the vehicle's life. The question in 2026 is no longer whether EVs save money — it's whether your specific situation suits EV ownership.