What is the cost per km when driving electric vs diesel?

It is becoming increasingly normal and economical to switch to an electric van. Not only because of the cost, but also because more and more cities are planning to ban non-zero emissie vans from their centres from 2025. Electric vans are quieter and produce fewer emissions, encouraging their purchase. Choosing an electric van is therefore an investment in the future.

There is a significant difference in the cost per km when driving electric versus driving a diesel vehicle. The cost depends on several factors. For example, the purchase price of an electric van is generally higher, but the monthly running costs are a lot lower. On top of that, there are additional taxes and subsidies from the government. At Routelogic, we know the benefits of electric driving better than anyone else. That is why we have listed everything about the cost price of electric driving per km for you

The cost of owning an electric van

The average list value of electric vans is around €51,500, while fossil-fuel cars cost an average of €34,500. This is quite a difference, which puts off many entrepreneurs while considering an electric van. Electric vans may be more expensive to buy, but in the long run, however, you will actually always be cheaper with an electric model. Moreover, with the increasing demand, more and more types of electric vans are entering the market, which also increases the variation in the purchase price. For example, the Renault Kangoo Z.E. is one of the cheapest electric vans on the market at the moment. You buy this one for €28,590 excluding VAT. The relatively high purchase cost of an electric van is offset by various government subsidies, lower maintenance and infrastructure costs, higher depreciation and higher trade-in value.

Subsidies purchase electric van

The government has created several subsidies to encourage the purchase of electric vehicles. For instance, you can enjoy tax benefits thanks to, among others, the Subsidy Scheme for Emission-Free Company Cars, the Environmental Investment Deduction and the Small Scale Investment Deduction. These kinds of subsidies can easily save you thousands of euros.

Maintenance and repair costs

The maintenance and repair costs of electric vans are also a lot lower than those of diesel vans. After all, a traditional van still has many separate rotating parts, such as an engine or a gearbox. These have to be maintained piece by piece and can individually cause problems. An electric car has only a battery. While this may need to be replaced after about 10 years, you generally have little to worry about, meaning maintenance costs remain low.

Charging costs

Perhaps the biggest financial advantage of electric cars is in charging costs. The difference with the fuel cost of a diesel van is increasing, due to the rising prices of petrol and diesel. On top of that, excise duty on petrol and diesel will be increased in the coming years. By the end of 2022, charging an electric van will cost an average of €0.37 per kWh. As a result, a full recharge will cost around €20. By comparison, for a full diesel tank you will spend an average of €125.

Depreciation and trade-in value of an electric car

Finally, you benefit from the depreciation and trade-in value of an electric car. For example, an electric van is worth about half the new price after four years of driving. In contrast, a diesel van sits at only 40 per cent of its purchase price after four years. This means that the trade-in value of electric vans will be more stable than that of fossil-fuelled cars. When you switch to a newer van over time, your electric van will often still be worth more than a combustion engine car. Although this difference might be different again in 10 years, when many electric vans are on the road.

All these aforementioned factors affect the cost of electric driving per kilometre. As you can read, there are several advantages and disadvantages to this. How does the cost price per km for electric driving compare to the cost price per km for a diesel van, and which way of driving is the most advantageous at the bottom line? We at RouteLogic have also figured that out for you.

Cost-per-kilometre comparison

Within the cost picture for a company car, we also talk about the Total Cost of Ownership van, or TCO. This is all the costs for a car added together. By calculating the TCO, you can find out whether the electric van you have your eye on is indeed more advantageous than a diesel-powered van. To calculate the cost of electric driving per km, we put together the depreciation, insurance, road tax, fuel or charging costs and maintenance costs, among other things.

Cost of electric driving per kilometre

As mentioned, maintenance and charging costs are lower for electric vehicles, but the purchase price of a diesel company van is again cheaper. Also, insurance for an electric van is often a bit more expensive than for a diesel vehicle. However, until 2024, you will not pay motor vehicle tax for an electric van. This is on top of the various government subsidies we already mentioned. Thanks to these benefits, the cost per kilometre for electric driving is ultimately lower than that for a diesel van.

All in all, the initial investment in an electric van will be higher than that of a diesel van. This makes purchasing an electric fleet especially difficult for small and start-up businesses. Fortunately, there are all kinds of parties that are happy to lease electric vans to you. However, thanks to the lower cost per kilometre for electric driving, you will spend less money on an electric van. This makes buying an electric van a real long-term investment.

At RouteLogic, we are already convinced of the benefits of electric driving. Our route planning is therefore ideal for your electric fleet. With our specially developed software, you have full control over the planning of your trips and route planning works easily, quickly and efficiently. Both your drivers and customers will thank you. Wondering if RouteLogic can help your electric fleet move forward? Then book a demo with one of our logistics experts.

We have even more information available to help you make a careful consideration, all of which can be found via the links below.