The EV pay-per-mile tax is looming, but now is still the time to buy

As we edge closer to the introduction of pay-per-mile tax for EVs in 2028, one can liken the feeling of dread felt by electric-car drivers to that leading up to a family or high-school reunion. You know that it’s going to be inconvenient, will cost you money and comes with the possibility of your privacy being compromised.

With this eVED scheme set to cost EV drivers, on average, well over £200 extra per year, the Government expects 120,000 fewer electric cars to make it onto the road by 2030 than it had previously forecast. Yet in the two years before the scheme kicks in, there are plenty of savings to be had.

For example, petrol and diesel prices remain high and show no sign of falling to ‘normal’ levels any time soon. At current petrol prices, a 1.0-litre Ford Puma will cost you around 15 pence per mile, while the electric Puma Gen-E will set you back less than two pence. True, this is if both cars achieve their official efficiency, but the comparison illustrates the savings that are possible.

Those lucky enough to be spending just over £40,000 on an electric car won’t need to pay the luxury car tax, either, because the threshold for this has been raised to £50,000 for EVs only. Between now and eVED’s expected start date, choosing an electric model could save you £880.

And that’s not even taking into account the fact that many electric models have achieved price parity with their petrol and diesel equivalents, and official discounts – from the manufacturer or the Government – sometimes make the EV the cheapest option at face value. Some of the best-selling electric models this year, such as the Puma Gen-E, the Vauxhall Frontera and Renault 5, are a chunk cheaper than their internal-combustion competitors.

So perhaps now is the time to take the plunge into EV ownership. A two-year lease means you won’t be tied to the car for that long if you’re worried about not enjoying the experience. But research suggests that fewer than one in 20 EV drivers would consider going back to petrol power, so it’s likely that eVED won’t stop you from having an electric model for your next car, too. 

Besides, with energy security and future oil supplies a genuine concern, plus a raft of affordable EVs entering the used market, going electric may well remain the cheaper option, even with pay-per-mile in place.

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