VW ID.3 and ID.4 CHEAPER over four years than the equivalent ICE Golf and Tiguan, says VW

Volkswagen says the cost of an electric ID.3 and ID.4 is less over four years than the equivalent ICE Golf or Tiguan.

There is no question that the cost of EVs is a big barrier to entry for many, with even the cheapest EVs costing more than a year’s salary for an average worker.

But the reality is that ICE cars have shot up in price too over the last decade, with car prices going up twice as fast as average earnings as car makers bump prices up and you pay for all the technology and safety stuff new cars come with.

So it’s not just EVs that are unaffordable for many, but ICE cars too. And with the used car market seeing huge price rises because frustrated new car wannabees are snapping up used cars as the ‘Covid and Chips’ problem constrains new car supply, used isn’t the ‘cheap’ option it usually is.

So, all that said – and assuming you want a new car – is the additional cost of an EV worth it, or are you better off with an ICE car? Well, according to VW, and despite the higher list price, an EV is cheaper over four years than an equivalent ICE model.

Volkswagen Financial Services UK has compared the cost of financing and running an EV and ICE over four years – doing 15,000 miles a year – and concluded it’s actually cheaper to run the EV.

Comparing an ID.3 Life to a Golf Life, the saving is calculated at £77 per month if you choose the ID.3, which is almost entirely down to the lower fuelling costs for the EV (and a saving on Road Tax too), despite the ID.3 costing £12k more than the £24k Golf (a decade ago the entry-level Golf cost just £13k). The savings on an ID.4 compared to a Tiguan delivers a similar saving.

All that said, new cars are now unaffordable for many, but if you are intent on getting a new EV do make sure you use a lease-type package for your new EV and let the finance company worry about the, possibly unrealistic, depreciation forecasts as EVs evolve with new battery chemistry, longer range, quicker charging and lower manufacturing costs in the coming years, potentially decimating used EV values.