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New EVs are now cheaper than petrol cars on average – is now the time to buy?
Words by: Andrew Woodhouse
Published on 30 April 2026 | 0 min read
One of the most common complaints people have about electric cars is that they cost so much to buy. It’s a fair one – all that tech doesn’t come cheap – but that higher initial price has unfortunately locked a lot of people out of the savings that come with owning and running an electric vehicle.
Fortunately, that has started to change, and the average price of a new electric vehicle has fallen below petrol for the first time. Significant discounts from manufacturers and retailers, boosted by the Government's Electric Car Grant, and a boom of affordable electric models (there are 40 new EVs under £30,000 now available), have all combined to form a significant milestone in the UK’s journey to electric. But are these prices sticking around, or should you jump when you can to grab a deal? Let’s unpack it.
Fortunately, that has started to change, and the average price of a new electric vehicle has fallen below petrol for the first time. Significant discounts from manufacturers and retailers, boosted by the Government's Electric Car Grant, and a boom of affordable electric models (there are 40 new EVs under £30,000 now available), have all combined to form a significant milestone in the UK’s journey to electric. But are these prices sticking around, or should you jump when you can to grab a deal? Let’s unpack it.
Are electric cars really cheaper than petrol now?
Yes and no, depending on the numbers you use.
If you look at the recommended retail prices (RRPs) and comparing equivalent models, electric cars are still around 15% more expensive than petrol alternatives. A few years ago, this upfront gap was as high as 34% so it’s great to see the pace of change. But the RRP is just the baseline cost set by manufacturers, while the transaction price reflects what buyers actually pay. So, when we factor in discounts, retailer contributions and Government incentives we get the transaction price – the amount you’ll actually pay – and that is coming down. Based on transaction price, the average new EV now costs £42,620, compared with £43,405 for a petrol car (as of April 17th). That equates to a £785 difference in favour of electric, with average electric prices below petrol in March and April so far. So, they’ve reached this point with the support of market interventions, but when it’s keeping money in your pocket, does it matter that much? For years, upfront cost has been one of the biggest barriers to EV adoption, and while the gap has not disappeared entirely, it is now beginning to narrow in a meaningful way.
If you look at the recommended retail prices (RRPs) and comparing equivalent models, electric cars are still around 15% more expensive than petrol alternatives. A few years ago, this upfront gap was as high as 34% so it’s great to see the pace of change. But the RRP is just the baseline cost set by manufacturers, while the transaction price reflects what buyers actually pay. So, when we factor in discounts, retailer contributions and Government incentives we get the transaction price – the amount you’ll actually pay – and that is coming down. Based on transaction price, the average new EV now costs £42,620, compared with £43,405 for a petrol car (as of April 17th). That equates to a £785 difference in favour of electric, with average electric prices below petrol in March and April so far. So, they’ve reached this point with the support of market interventions, but when it’s keeping money in your pocket, does it matter that much? For years, upfront cost has been one of the biggest barriers to EV adoption, and while the gap has not disappeared entirely, it is now beginning to narrow in a meaningful way.
There’s been a boom in affordable electric cars.
The range of more affordable electric cars is expanding. The number of new EV models priced at £30,000 or less has increased from 31 in March last year to around 40 today.
Demand is being shaped by a mix of established and emerging brands. According to our data, the most in-demand new electric models in April include: • Renault 5 E-Tech Electric • Jaecoo 5 • MG S5 • MG4 • BMW i5 • Kia EV3 • Cupra Born • Skoda Elroq • Leapmotor B10 • MG S6 At a brand level, MG Motor leads electric demand, followed by Renault and Kia. Notably, Chinese-owned or manufactured brands – including Omoda, Chery and MG – now account for more than half of the top ten most in-demand new models across all fuel types, reflecting growing consumer awareness and competitive pricing.
Demand is being shaped by a mix of established and emerging brands. According to our data, the most in-demand new electric models in April include: • Renault 5 E-Tech Electric • Jaecoo 5 • MG S5 • MG4 • BMW i5 • Kia EV3 • Cupra Born • Skoda Elroq • Leapmotor B10 • MG S6 At a brand level, MG Motor leads electric demand, followed by Renault and Kia. Notably, Chinese-owned or manufactured brands – including Omoda, Chery and MG – now account for more than half of the top ten most in-demand new models across all fuel types, reflecting growing consumer awareness and competitive pricing.
So… is now the time to buy an electric car?
Right now, improved affordability is making electric vehicles a more attractive option than ever. With prices becoming increasingly competitive, one of the biggest hurdles to making the switch – the cost difference – is slowly being removed.
If manufacturers or Government schemes pull back their support, the average cost of electric models could go over petrol again, so it could be worth taking advantage of this moment if you’re in the right situation and ready to change. Check out the list of eligible models here. But looking over the longer term, the increase in EV production and the introduction of more models should naturally drive prices down over time. We’ll hit true like-for-like price parity when RRPs for new electric and petrol cars match directly, without having to rely on special deals to even things out. Until then, taking advantage of current market conditions could make now a smart time to buy, especially if you find a deal that aligns with your needs.
If manufacturers or Government schemes pull back their support, the average cost of electric models could go over petrol again, so it could be worth taking advantage of this moment if you’re in the right situation and ready to change. Check out the list of eligible models here. But looking over the longer term, the increase in EV production and the introduction of more models should naturally drive prices down over time. We’ll hit true like-for-like price parity when RRPs for new electric and petrol cars match directly, without having to rely on special deals to even things out. Until then, taking advantage of current market conditions could make now a smart time to buy, especially if you find a deal that aligns with your needs.
Practical tips: getting the best deal
If you’re considering a new car – electric or petrol – a few simple steps can make a significant difference:
1. Look beyond the list price: Discounts are now a major part of the market, especially for EVs. Focus on the advertised price, not just the RRP. 2. Compare like-for-like models: If you’re weighing EV vs petrol, compare similar size, spec and brand positioning to understand true value. 3. Time your purchase: Plate-change months (March and September) often bring more stock and stronger offers. 4. Check for incentives: Government grants and manufacturer contributions can vary by model and availability. And remember the upfront price is only part of the picture. When planning your budget, consider: • Fuel vs charging costs: Home charging is typically much cheaper than petrol per mile, while public charging costs can vary significantly depending on network and speed • Insurance: EVs can sometimes cost more to insure due to repair costs and specialist parts, although this varies widely by model and insurer. • Servicing and maintenance: EVs generally have fewer moving parts, which can mean lower routine servicing costs over time. You can learn more about the cost of buying, owning and running an electric car in our dedicated hub.
1. Look beyond the list price: Discounts are now a major part of the market, especially for EVs. Focus on the advertised price, not just the RRP. 2. Compare like-for-like models: If you’re weighing EV vs petrol, compare similar size, spec and brand positioning to understand true value. 3. Time your purchase: Plate-change months (March and September) often bring more stock and stronger offers. 4. Check for incentives: Government grants and manufacturer contributions can vary by model and availability. And remember the upfront price is only part of the picture. When planning your budget, consider: • Fuel vs charging costs: Home charging is typically much cheaper than petrol per mile, while public charging costs can vary significantly depending on network and speed • Insurance: EVs can sometimes cost more to insure due to repair costs and specialist parts, although this varies widely by model and insurer. • Servicing and maintenance: EVs generally have fewer moving parts, which can mean lower routine servicing costs over time. You can learn more about the cost of buying, owning and running an electric car in our dedicated hub.