Is an EV cheaper than a petrol car in New Zealand? It can be, particularly with economical home charging, but the answer depends on the vehicles and how you use them. Include electricity, road user charges, purchase price, insurance, maintenance and resale value in the comparison.
Lower charging costs alone do not guarantee lower total ownership costs. An EV relying heavily on expensive public charging can produce a different result from the same car charged at home.
This guide compares battery-electric vehicles with petrol cars. Conventional hybrids and plug-in hybrids have different energy and charging arrangements.
Compare Similar Vehicles First
Start with vehicles that meet the same passenger, luggage and driving needs. Compare their full purchase prices, condition, safety equipment and expected ownership costs.
For a used EV, battery condition and usable range are especially important. A lower purchase price is only useful if the vehicle can comfortably handle your journeys.
EV Charging vs Petrol: Include Road User Charges
For an EV, add the electricity cost and applicable road user charges. Also allow for RUC transaction fees and any charging-session, parking or idle fees.
For a petrol car, calculate fuel cost using its consumption and the pump price. Petrol road funding charges are included in the pump price, so do not add them again.
Check NZTA’s RUC rates and transaction fees when making your own comparison.
Worked Example: Home Charging vs Public Charging
Illustrative assumptions: These examples use an annual distance of 12,000km, petrol consumption of 7L/100km and EV electricity consumption of 18kWh/100km. The EV figure represents electricity purchased, including charging losses.
- Petrol price: assumed $2.80 per litre
- Home electricity: assumed $0.30 per kWh
- Public charging: assumed $0.85 per kWh
- EV road user charges: $76 per 1,000km used in the calculation
* Fuel prices, charging tariffs and consumption are illustrative, not current quotes or claims about a particular model. Check the applicable RUC rate before using the example.
| Example | Energy cost per 100km | Separate RUC per 100km | Combined cost per 100km | Annual cost at 12,000km |
|---|---|---|---|---|
| Petrol car | $19.60 | Not added separately | $19.60 | $2,352 |
| EV charged at home | $5.40 | $7.60 | $13.00 | $1,560 |
| EV using public charging | $15.30 | $7.60 | $22.90 | $2,748 |
What this shows: Under these assumptions, the home charged EV costs $792 less per year for energy and road charges than the petrol car. The public-charged EV costs $396 more.
These totals exclude RUC transaction fees, other charging fees, charger installation, insurance, servicing, repairs, finance and depreciation. Many owners use a mixture of home and public charging, so calculate the mix you expect to use.
How to Calculate Your Own Running Costs
- Petrol cost per 100km: Litres used per 100km multiplied by the price per litre.
- EV electricity cost per 100km: Electricity purchased per 100km multiplied by the price per kWh.
- EV road charges: Add the applicable RUC cost for the distance driven.
- Annual cost: Multiply the combined cost per 100km by your annual kilometres divided by 100, then add relevant transaction and charging fees.
If using a dashboard consumption figure, check whether it includes charging losses. Electricity purchased can be higher than the energy used to drive the car.
Home Charging: Check the Complete Cost
Compare the electricity rate that applies when you expect to charge. If changing power plans, consider the effect on your whole household bill, including daily charges and other usage.
Obtain a quote for any charger or electrical work required. Charging arrangements must suit the vehicle, equipment and property.
Follow the manufacturer’s instructions and use charging equipment suitable for New Zealand. Ask a qualified electrician about installation and circuit requirements. See EECA’s charging guidance.
Servicing and Repairs
A battery electric vehicle does not need petrol engine oil changes or spark plugs. However, it still needs maintenance appropriate to its design, including tyres, brakes, suspension and other scheduled checks.
Regenerative braking can reduce friction-brake use, but brakes still need inspection and maintenance. Repair costs depend on the model and fault; specialist electrical or battery work can be significant.
Compare servicing schedules and obtain advice on the exact vehicles rather than assuming every EV will cost less to maintain.
Battery Condition Matters When Buying Used
Battery capacity can decline with age and use, reducing available driving range. The amount varies between vehicles, and a battery can also develop faults.
- Obtain a battery assessment appropriate to the model.
- Understand the reported State of Health and the assessment’s limitations.
- Check realistic range for your routes, weather and passenger load.
- Confirm charging connectors and supported charging speeds.
- Check any remaining warranty and whether it applies to the vehicle.
- Investigate repair support if a concern is identified.
A battery-health result describes condition at the time of testing; it does not guarantee future life. A warranty period is also not a promise that the battery will fail or last indefinitely at that age.
Read EECA’s guide to EV range and batteries.
Long-Distance Driving
An EV may suit longer trips if its usable range, charging capability and available chargers fit your routes. Allow for charging stops, possible queues and a range reserve.
Check connector compatibility and charging performance for the actual car. A charger’s advertised power does not mean every vehicle can charge at that speed.
A petrol car may be more convenient where reliable charging access is difficult. The choice depends on your journeys rather than distance alone.
Compare Total Ownership Cost
For either vehicle, compare:
- Purchase price and any on-road costs
- Expected resale value
- Electricity or fuel and applicable road charges
- Insurance
- Servicing, tyres and repairs
- Charging equipment and installation where required
- Interest and fees if financing
Depreciation is the purchase price less the eventual resale value. Do not count both the full purchase price and depreciation as separate ownership expenses.
Future resale values are uncertain for both EVs and petrol cars. Compare several reasonable scenarios rather than assuming strong resale demand.
Which Option Suits You?
Consider an EV when: Charging is convenient, its usable range fits your journeys and the full ownership calculation works for your budget.
Consider petrol when: Charging access is difficult, the vehicle better meets your travel needs or its total cost is more suitable.
Consider a conventional hybrid when: You want to compare fuel savings without external charging. Assess it separately from a battery-electric vehicle.
Compare Vehicles at Dave Allen Motors
Dave Allen Motors is an MTA Assured dealership at 5 Norris Avenue, Te Rapa, Hamilton, with 700+ Google Reviews and 52,000+ vehicles sold.
Tell our team your daily distance, longer-trip requirements and charging access. We can help you compare available vehicles and explain the information supplied with each one.
Finance approval, rates and terms depend on lender assessment.
Frequently Asked Questions
Are EVs cheaper to run than petrol cars in NZ?
They can be, particularly with economical home charging. Include road user charges and charging fees, then compare the specific vehicles’ consumption and your expected charging mix.
Can public charging make an EV more expensive to run?
Yes. Depending on the charging tariff, vehicle efficiency and petrol comparison, public charging plus road user charges can cost more per kilometre. Calculate your actual mix of home and public charging.
Do EVs need servicing?
Yes. They do not require petrol engine servicing, but tyres, brakes, suspension and other components still need maintenance according to the manufacturer’s schedule.
How long does an EV battery last?
There is no guaranteed lifespan for every battery. Age, use, design and condition matter. Obtain a suitable assessment and check any warranty before buying a used EV.
Are EVs suitable for long-distance travel?
They can be when usable range and compatible charging fit your route. Consider charging time, availability and a range reserve before deciding.
Which is cheaper to own over several years?
Compare purchase price less resale value, energy, road charges, insurance, maintenance, charging setup and finance costs. Lower energy costs alone do not establish the cheapest overall vehicle.