New research has delivered a significant financial reassurance to electric vehicle (EV) drivers, confirming substantial annual savings are still possible despite the government's controversial new road tax plans.
Substantial Savings Outweigh New Tax Burden
Analysis from the Energy & Climate Intelligence Unit (ECIU) shows that the UK's most popular second-hand electric cars can save their owners an average of £1,450 per year. This finding comes after Chancellor Rachel Reeves announced a planned 'pay-per-mile' tax of 3p per mile for EVs, set to be introduced in 2028.
The study modelled ten years of second-hand ownership, factoring in purchase price and all running costs. It focused on the most-viewed used EVs on Autotrader during 2025. While the list featured larger models with higher savings, such as the Jaguar I-Pace, Polestar 2, and Audi Q4 e-tron, even smaller vehicles offered considerable financial benefits.
Top Performing Models for Cost-Conscious Drivers
The research highlighted specific annual savings for popular compact EVs, proving that the advantage extends beyond premium models.
- Nissan Leaf: Almost £700 per year.
- Renault Zoe: Approximately £940 per year.
- Kia Niro: Around £650 per year.
Colin Walker, Head of Transport at the ECIU, commented on the trend: "An ever-increasing number of savvy families are turning their backs on paying a 'petrol premium' to run their old cars, trading them in for second-hand EVs that can save hundreds, even thousands, of pounds a year."
Policy Shifts Risk Slowing EV Adoption
Walker also expressed concern that recent government announcements could undermine consumer confidence in the electric vehicle market. "The mixed messages being sent to consumers by the government's introduction of a 3p per mile tax on EVs is understandably causing concern," he stated.
He warned this policy risks significantly slowing the sale of both new and used electric cars. However, he emphasised that the fundamental economics remain compelling: "It will not change the fact that second-hand EVs can deliver, and will continue to deliver, very significant savings to families across the country the moment they get their hands on the keys."
The ECIU further cautioned that the government's recent weakening of its targets for new EV sales could have a knock-on effect. This move may encourage manufacturers to sell more plug-in hybrids, which the unit notes burn 490% more fuel than their manufacturers claim, and fewer pure electric vehicles.
This shift could ultimately stifle the growth of the UK's second-hand EV market, keeping many families from accessing cheaper and cleaner electric driving, the analysis concluded.
