The True Cost of EV Ownership in 2025 (And Why the Numbers Might Surprise You)
[UK Factual Accuracy Notice: This article reflects UK vehicle tax rates, electricity costs, and regulations current as of December 2025. Rates change annually in April. Always verify current figures before making purchase decisions.]
If you’re considering an electric vehicle for your next prestige car, you’ve probably heard they’re cheaper to run, and a couple of years ago, that was absolutely true.
Then April 2025 arrived and the rules changed.
The UK government overhauled how electric vehicles are taxed and if you’re a prestige car owner looking at a premium EV like a BMW i4 or Mercedes EQE, the financial case isn’t quite as clear-cut anymore.
This post walks through the real numbers. Not the marketing claims, not the “fuel savings will pay for itself” projections, but what you’ll actually pay each year and whether an electric prestige car still makes sense for your situation.
The 2025 Tax Changes: EVs Lose Their Free Pass
Here’s what happened in April 2025.
For years, electric vehicles received preferential treatment on Vehicle Excise Duty (VED). They paid very little tax compared to petrol cars. That was the government’s way of encouraging adoption.
That incentive is quietly disappearing.
From April 2025, electric vehicles now pay the same VED structure as other cars. Here’s the breakdown:
Year 1: £10 (same for all cars)
Year 2 onwards: £195 per year (the standard rate)
If that sounds cheap, wait. There’s a supplement.
The Expensive Car Supplement
Just like petrol, luxury cars pay extra tax, so do expensive electric cars. If your EV costs more than £40,000, you pay an additional: £425 per year.
So a premium EV over £40,000 now costs:
– Year 1: £10
– Year 2+: £195 + £425 = £620 per year
That’s a meaningful jump. For context, a BMW 330i petrol costs around £155 per year. An M340i costs £190.
2026 and Beyond: More Changes Coming
In April 2026, the expensive car threshold increases to £50,000. So some high-spec EVs that currently pay the supplement will drop down to standard rate.
And by 2028? The government’s planning something more radical. A mileage-based tax system is coming for all zero-emission vehicles. Early estimates suggest around 3 pence per mile.
Drive 12,000 miles a year (typical for most owners), and that’s roughly £360 per year. Which is actually higher than today’s standard EV rate.
What Does This Mean for Your Annual Costs?
Let’s look at real numbers. We’ll compare three popular prestige vehicles that prestige car owners actually choose:
– BMW i4 eDrive40** (electric)
– BMW 330i (petrol)
– BMW M340i (petrol, performance)
Annual Running Cost Breakdown
| Cost Category | BMW i4 eDrive40 | BMW 330i | BMW M340i |
| Road Tax | £620 | £155 | £190 |
| Fuel/Electricity | £420–500 | £1,200–1,400 | £1,600–1,800 |
| Scheduled Servicing | £150–200 | £250–350 | £300–400 |
| Tyre Wear | £200–250 | £150–200 | £150–200 |
| Insurance | £650–750 | £600–700 | £700–800 |
| TOTAL (Year 2+) | £2,440–2,720 | £2,355–2,805 | £2,940–3,590 |
The big insight? The BMW i4 and 330i cost roughly the same to run. The EV’s lower fuel costs are almost entirely offset by the new road tax.
The M340i, unsurprisingly, is noticeably more expensive, driven by higher fuel consumption and insurance.
Where These Numbers Come From
A few assumptions worth understanding:
Road Tax: April 2025 rates applied (Year 2+). EV over £40,000, so includes expensive car supplement.
Fuel/Electricity:
– EV: 14–18p per kWh for home charging (varies by supplier and region). The i4 eDrive40 uses roughly 16–18 kWh per 100 miles.
– Petrol: Current pump prices (roughly £1.45 per litre). The 330i averages around 35–40 mpg motorway, 28–32 mpg mixed. The M340i is closer to 24–28 mpg.
Servicing: Based on typical independent garage costs. EVs need less servicing (no oil changes), but battery management diagnostics add cost. Premium brands cost more regardless.
Tyre Wear: EVs wear tyres faster due to instant torque and heavier weight. Expect tyre replacement every 25,000–30,000 miles vs 30,000–35,000 for petrol cars.
Insurance: Complicated. Some insurers offer EV discounts. Others charge premium rates for complex repairs. Costs vary widely by postcode and driving history.
Five-Year Ownership: Where EVs Start to Win
Year-to-year running costs might be similar, but stretch the timeline and the EV picture improves.
Over five years, assuming 60,000 miles total:
– BMW i4 eDrive40: £13,000–14,500 (running costs only)
– BMW 330i: £12,500–15,000
– BMW M340i: £16,000–19,500
The i4 becomes competitive, especially if electricity remains cheaper than petrol.
But here’s what matters more than raw running costs for prestige owners: Resale value.
An EV with well-documented service history, intact battery health records and genuine parts retains value better than many expect. A five-year-old i4 eDrive40 is still a compelling proposition for buyers worried about battery longevity (which is generally overstated, most retain 85-90% capacity after 8 years).
A five-year-old 330i? Also holds value well, and buyers never worry about expensive battery replacement.
Battery Health: The Question Everyone Avoids
Let’s address the elephant in the room.
“Will the battery die and cost me £10,000 to replace?”
Almost certainly not, if you own a prestige EV and maintain it properly.
Modern prestige vehicle batteries (BMW, Mercedes, Porsche) are typically warrantied for 8–10 years or 100,000–150,000 miles. In real-world use, degradation is usually minimal. Most owners see 85–95% capacity retention after 5 years.
Battery replacement from the manufacturer costs £4,000–8,000 depending on the model. It’s expensive, yes. But it’s also increasingly unlikely you’ll need it.
The catch? If you use a non-specialist garage for electrical work, you might void the battery warranty or miss early warning signs of degradation.
This is where choosing the right service provider matters more for EVs than it does for petrol cars. An independent garage with proper EV diagnostics can catch problems early. A general garage probably can’t.
When an EV Makes Sense (And When It Doesn’t)
After the 2025 tax changes, here’s the honest assessment:
Choose EV If:
– You have home charging (saves money vs public chargers)
– You do 8,000–12,000 miles per year (sweet spot for cost comparison)
– You value low noise and refinement (EVs are genuinely nicer to drive in congestion)
– You plan to keep the car for 5+ years
– You’re willing to use a specialist garage for servicing
– You live in an area with good charging infrastructure
Stick With Petrol If:
– You regularly do 200+ mile journeys without proper planning
– You have no reliable home charging available
– You drive high-performance variants and want instant throttle response without range anxiety
– You prefer not to worry about battery health or specialist servicing
– You enjoy traditional engine noise (yes, some people do)
– You change cars every 2–3 years
The Servicing Wildcard: Why It Matters More Than You Think
Here’s something most EV buying guides miss.
Running costs are similar now. But servicing quality varies dramatically between garages when it comes to electric vehicles.
A prestige EV still needs expert care. Tyre wear is higher. Battery diagnostics are specialised. Electrical systems are complex. Warranty protection depends on using correct parts and procedures.
Use the wrong garage, and you might:
– Miss early battery degradation warnings
– Void your warranty with incorrect repairs
– Pay more for specialist repairs later because damage wasn’t caught early
– Lose thousands in resale value due to incomplete service history
Use the right specialist garage and your EV experience is stress-free. Records are complete. Battery health is monitored. Warranty stays intact. Resale value is protected.
This is where an independent specialist with proper EV training and diagnostics actually has an advantage over main dealers. We can provide the same expertise at better value.
The Five-Year Decision Framework
If you’re seriously considering a prestige EV, here’s what matters:
1. Upfront Cost: EVs are typically £3,000-8,000 more expensive than equivalent petrol models. Can you absorb that?
2. Annual Running Costs: Now roughly equal to petrol equivalents (thanks to 2025 tax changes). No longer a huge advantage.
3. Charging Infrastructure: Do you have home charging? Public charging nearby if you don’t?
4. Servicing Plan: Will you commit to specialist servicing? (Critical for warranty protection and resale value.)
5. Resale Value: EVs are holding value better than expected. But this depends on battery health and service history.
6. Personal Preference: Do you actually want an EV, or are you buying one because you think you should?
That last point matters more than people admit. An EV is genuinely brilliant if you want the driving experience. It’s a sensible financial decision but not a no-brainer anymore.
What This Means Going Forward
April 2025 changed the EV equation for prestige car owners. The tax advantage is gone. Running costs are comparable. The decision is now less about “EVs are cheaper” and more about “which car do I actually want to drive?”
If you’re seriously considering a prestige EV, get a realistic quote from an independent specialist garage. Ask about battery monitoring services. Verify that specialist servicing is available locally. Check resale values on three year old versions of the model you’re considering.
Then make the decision based on what you actually want, not on numbers that no longer favour one option dramatically over the other.
Your Next Step
Whether you choose electric or petrol, the most important decision is choosing the right garage for servicing.
A prestige vehicle, EV or not, deserves expert care. Specialist knowledge, transparent pricing and a service provider who’s genuinely invested in keeping your car in flawless condition.
If you’re in Huntingdon or Peterborough, we’re here to help. Whether you drive a BMW i4, a 330i, or any prestige vehicle, we’ll keep your car running perfectly, protect your warranty, and preserve your resale value.
Ready to discuss your next service? Book an appointment, we’ll give you an honest assessment of your vehicle and what it really needs.
FAQs on EV Ownership
Q: Do EVs really save money on fuel?
A: Yes, roughly 60% less than petrol per mile. But the new tax on premium EVs cancels much of that saving out. Over five years, they’re cost-comparable.
Q: What if I can’t charge at home?
A: Public charging is more expensive (typically 35–50p per kWh vs 14–18p at home). It changes the economics significantly, consider it carefully.
Q: How long do EV batteries actually last?
A: Most prestige vehicle batteries retain 85–95% capacity after 5 years. Warranties typically cover 8–10 years. Replacement is rare and expensive but not inevitable.
Q: Should I buy an EV or wait?
A: The 2028 mileage-based tax might change things again. But by 2028, battery costs will be lower, charging infrastructure better and the decision clearer.
Q: Will my EV warranty be protected at an independent garage?
A: Only if the independent garage is properly certified (SERMI compliant for BMW, for example) and uses correct parts and procedures. Always confirm before servicing.
