UK motorists need to save for 13 years to buy a new EV, research finds

Research by Hippo Leasing has looked into which countries in Europe will motorists most easily be able to buy their first electric vehicle.

Looking at the average cost of an EV and the average salary of a country’s population, they have determined that the Swiss should be leading the way in transitioning to emission-free motoring, at least if affordability is the criteria.

25 countries were chosen, on the basis that the manufacturers of the five best-selling EVs in Europe operate there. The average salary was calculated after tax and deductions using Wikipedia’s net average monthly salary map.

In only five of the 25 countries, was the average salary greater than the average price of an EV, with Switzerland – where the  average citizen pockets £57,386 a year and and an EV costs just £38,247 – out in front. In the UK, the cost is very similar but the average salary is down at £29,106.

Using a 10% Savings Rule, a guideline that encourages people to set aside 10% of their income when they’re saving for a major purchase, such as a car. The calculations show that in the UK we would need to save for 13.2 years before they can make the acquisition. Pity the Croats though, it will take them more than 36 years to get their hands on a new EV.

Obviously, such data does not factor in the decline in cost of producing new EVs which is moving at sufficient pace that research suggests price parity between EVs and ICE powered cars will be achieved by 2027.

Commenting on the data, Tom Preston, Managing Director at Hippo Motor Group said: ‘As our research shows, owning an EV is financially difficult for many people across Europe, as their own finances are eclipsed by the prices of electric cars.

‘Leasing an electric car is helping many more people make the switch to an EV, as they don’t need to save for the full value of their chosen car. Instead, they can make an initial payment followed by regular monthly payments.’