Lloyds Bank has issued a stark warning to UK drivers of petrol and diesel cars, revealing they are significantly overestimating the cost of switching to an electric vehicle (EV). New research indicates a major knowledge gap, with many believing the switch is thousands of pounds more expensive than it actually is.
The £5,000 Perception Gap
The Plugging Into the Future report, produced by Lloyds Bank in collaboration with Frontier Economics, sheds light on widespread misconceptions. The study, based on a YouGov survey of 2,187 UK drivers who purchased a car in the last two years, found that the average driver believes the cheapest new five-seater battery electric vehicle (BEV) costs around £20,000.
In reality, the market tells a different story. The entry-level Dacia Spring is priced at just £14,995 – a full 25% or approximately £5,000 less than public perception. The report states that fewer than 15% of drivers correctly identified that the cheapest BEV falls into the £10,000 to £15,000 price bracket.
Falling Prices and Running Cost Savings
This data suggests that over 85% of drivers may hold outdated views on electric car affordability. Supporting this, Auto Trader data shows the average purchase price for EVs fell by 24% between September 2023 and July 2025.
The financial benefits extend far beyond the showroom price. Lloyds' analysis, drawn from its own fleet of 348,000 vehicles – the largest in the UK – indicates that electric vehicles can be up to 49% cheaper to maintain over a four-year period compared to their petrol or diesel equivalents.
Furthermore, the report dispels myths about charging costs. It highlights that home charging can cost as little as £12 per month – less than half the £30 most drivers expect and even cheaper than a standard Netflix subscription.
Industry Calls for Action on Awareness
Nick Williams of Lloyds Bank commented on the findings, stating: "There’s a stubborn myth that electric cars are out of reach for ordinary families, but in many cases that’s just not true. Entry-level battery electric vehicles are already on the market for under £15,000 – cheaper than many petrol models, especially when you consider the lower running costs for electric vehicles too."
He emphasised the broader implications, adding: "It is vital that we tackle these myths to ensure drivers understand the benefits of EVs and consider making the switch, reducing emissions and helping the UK to meet its Net Zero targets. This research serves to highlight how important building public awareness of the benefits of going electric is."
Williams concluded with a call for collaboration, noting that industry and government must work together to give households the confidence to transition to electric transport, particularly in the context of policies following the Autumn Budget.
