Electric cars vs petrol cars cost breakdown
Here we’ll break down the cost-based factors for both electric and petrol cars to help you decide which is right for you.
For a lot of car buyers, the choice between electric cars and petrol cars comes down to cost. Regardless of the many merits of electric and petrol cars, if it’s out of the budget, then it’s not a good fit.
If you’re deciding on what type of car to buy, here’s a quick cost breakdown of electric cars versus petrol cars:
Sale price
When it comes to upfront costs, electric cars are usually more expensive. Although sale prices aren’t as high when electric cars were first introduced, they’re often still costlier by around $10,000 to $20,000 or more than petrol cars.
As a starting point, small electric vehicles are priced at around $30,000 while petrol variants come at a minimum of $15,000. In some cases, an electric version of a particular model can be considerably more expensive than the petrol-powered variant.
Running costs
Running costs relate to how much fuel is required to power your new set of wheels. The average petrol vehicle clocks 13,400 kilometres in a year and uses 10.8 litres of fuel for every 100 kilometres travelled.
In March 2025, petrol prices across Sydney, Melbourne, Brisbane, Adelaide, and Perth (the five largest cities) were 182.2 cents per litre (cpl). Motorists will likely spend approximately $2,633.90 on fuel per year. This can vary depending on the price of fuel, how many kilometres driven, and your vehicle’s fuel efficiency.
On the other hand, the average cost of electricity in Australia is $0.30 per kilowatt (kW), and it takes around 18kW to travel 100km. This means it will cost you an average $5.40 to travel 100km, less if you are on a lower electricity tariff. At 30 cents per kWh, an EV driver has an annual energy cost of $723, over three times less than the running costs of a petrol car.
Maintenance
Maintenance costs cover servicing, parts and repairs. The differences between electric and petrol vehicles in the amount of maintenance required are significant.
Petrol cars have more moving parts, which require more maintenance. You’ll need to get oil changes, filters, engine repairs and the like. These maintenance costs can accumulate quickly and leave a hefty bill.
Electric vehicles, on the other hand, won’t need oil changes or other engine mechanical repairs. The only repairs or maintenance these vehicles require are on brake pads, tyres, and suspension checks and/or replacements. Electric car batteries are likely to last for anywhere between 10 and 20 years.
Maintenance costs for electric cars range from $200 to $400 annually. Electric vehicles are typically taken to service once a year or every 15,000 kilometres, whichever comes first. Petrol cars, on the other hand, can cost between $220 and $385 per service. It’s advised that petrol cars be serviced every six to twelve months (depending on vehicle age) or every 10,000 kilometres.
Range
In motoring, ‘range’ refers to how far a vehicle can travel on a single tank of fuel, or in the case of electric vehicles, a fully charged battery. Generally, the larger the vehicle, the greater the fuel capacity, meaning it can travel further on a single tank of fuel.
In recent years, new electric vehicle models have come out with extended ranges that can compete with their petrol counterparts. However, it’s still considerably more accessible for a lot of motorists to refuel than it is to recharge. Petrol stations still outnumber electric vehicle chargers in Australia.
Resale value
Depreciation is, overall, the single biggest cost of owning a car, as the moment you leave the dealership with your new wheels, they decline in value. The used car market has boomed in recent years; however, determining the resale value of an electric car against a petrol car is not as straightforward as it seems.
Resale value is generally on par with, if not less than petrol vehicles, meaning one does not currently provide greater resale value over the other. The average resale value of these older electric vehicles is considered to be less than 40% of their original value. In comparison, petrol vehicles currently have a greater resale value of 50-60% of their original value.
Loans
One of the most significant costs when buying a car is the loan. According to the latest Transport Affordability report, yearly car loan payments in capital cities are $10,945.94, while they’re $10,943.55 in regional areas. Car finance costs do vary depending on the interest rate, sale price, loan term, and other factors.
Finding a lender with low rates on car loans should be a priority if you want to spend less on your loan. But in this case, buying an electric vehicle could save you more on your loan.
Lenders like loans.com.au that offer green car loans specifically for those purchasing an electric car. These green car loans have discounted rates, lowering the overall cost of your car loan. You can also enjoy useful features like redraw facilities, allowing you to save even more.
If you’re ready to apply for a car loan, get in touch with us today! Call 1300 519 212 or apply online.
Find out in under 2 minutes if you qualify for one of our low rate car loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
