Encouraging the shift to electric vehicles faces challenges like high costs and range anxiety. A recent study reveals that despite financial incentives, electric vehicle prices remain steep compared to gasoline cars. While used electric vehicles may offer savings, leasing costs are higher. The importance of home charging is highlighted, as lack of access can increase expenses significantly. The report stresses the need for continued government support and regulation of charging prices to enhance electric vehicle affordability and appeal.
There is a growing emphasis on encouraging drivers to transition to electric vehicles. However, the reality is far from perfect. Recent research indicates that many drivers remain hesitant, primarily due to several challenges, including range anxiety and the high costs associated with electric cars.
Cost Considerations for Electric Vehicles
Many prospective buyers still perceive electric vehicle prices as prohibitively high, even with financial incentives like government bonuses, which have been significantly reduced as of early 2025. This finding comes from a recent study by a consumer advocacy group that examined the overall costs of owning electric vehicles. Here’s what they discovered.
The study reaffirms a well-documented trend: “in 2025, all new electric vehicles, regardless of size, will be more expensive for their first owner than comparable new gasoline vehicles.” While this gap is expected to narrow over time, the organization’s analysis covered three categories of vehicles: compact cars, mid-sized vehicles, and larger family models.
In the used car market, the findings suggest that “third-hand electric car owners could save as much as 4,000 € over seven years.” This implies that purchasing a used electric vehicle is more financially beneficial compared to acquiring a new one, a trend that also holds true for traditional gasoline cars, as their depreciation tends to be less severe as they age.
The advocacy group also evaluated different buyer scenarios focusing on leasing new vehicles. It was noted that “extra costs reach 2,900 euros for small cars, 750 euros for medium-sized vehicles, and 4,300 euros for larger cars.” This reflects the higher initial prices while leasing companies often predict higher residual values. However, the analysis overlooked a crucial factor in its calculations.
This omitted aspect pertains to purchase incentives, specifically the ecological bonus, which can range from 2,000 to 4,000 euros depending on an individual’s tax bracket. After factoring in this bonus, electric vehicles generally become more affordable for owners. Nonetheless, the advocacy group emphasizes the necessity for the government to continue these financial supports, alongside the conversion bonus that was eliminated at the close of 2024. The study also anticipates a general decline in electric vehicle prices moving forward.
Charging Infrastructure and Its Impact
As new, more budget-friendly models enter the market, there is potential for price reductions. This comes amidst an existing price war, which is expected to escalate. Another critical aspect to consider is the charging infrastructure. The research delved into this topic, underscoring its significance. It noted that 66% of electric vehicle charging occurs at home, with the average cost per kWh sitting at 0.23 euros. Additionally, the estimated annual cost of a home charging station is around 100 euros.
Utilizing home charging is crucial for minimizing expenses, particularly if you are on a regulated tariff plan, such as EDF’s Tempo. The organization warns that a “driver without access to a dedicated charging station may incur nearly 550 euros in extra annual costs.” They urge the government to enforce strict regulations on electricity pricing. Without affordable charging options, achieving cost parity with gasoline vehicles could be delayed by as much as six years.
The report highlights that if energy costs rise too significantly, the appeal of electric vehicles could diminish. Fortunately, this is not the case at present, especially considering that electricity prices dropped by 15% in February 2025. Concurrently, the study calls for government intervention to regulate the pricing of public charging stations, a step that is expected to take place following scrutiny from the Competition Authority. Ultimately, the advocacy group urges the state to continue offering purchase incentives until electric vehicle prices truly become competitive.