Electric car costs: Detailed at a glance

The mobility of the future is electric – that's for sure. But what about the costs that an electric car entails? In this blog post, we will show you the costs of an electric car in all its facets – purchase, operation, maintenance – and give you a comprehensive overview.

What are the costs of electric cars?

Despite higher acquisition costs compared to combustion engines, electric cars offer long-term financial benefits, especially through low operating costs and tax incentives.

Historical cost

The purchase price of an electric car can be daunting at first, but is often between 20,000 and 100,000 euros, depending on the model and equipment.

Running costs

Electricity costs are variable, but usually cheaper than fuel costs. The motor vehicle tax for electric cars is often lower or eliminated altogether. Insurance companies offer special tariffs for electric cars, which are not very different in price from those for combustion engines.

Maintenance costs

Electric cars require less maintenance because they have fewer wearing parts. Inspections and TÜV tests are still necessary, but are usually much more cost-effective.

Battery costs

The battery is the heart of the electric car and can cause high costs when changing. However, battery replacements are rare and many manufacturers offer long warranties.

What are the costs of buying an electric car?

The acquisition costs for electric cars vary greatly. Here is a detailed look at the price ranges of different vehicle classes:

• Small car: From about 20,000 euros, ideal for city traffic
• Mid-range: Average 30,000 to 50,000 euros, good for families
• Luxury class: Often 80,000 to 100,000 euros, offers luxury and range

What are the costs for e-car registration?

The registration costs for electric cars vary regionally, but can be cheaper than for combustion engines due to subsidies and incentives. The E-license plate in Germany is available for electric and fuel cell vehicles as well as certain hybrid cars and offers various advantages in road traffic. These benefits can vary from city to city and often include:

• Free parking
• Access to free charging stations
• the use of bus lanes

In order to obtain an E-license plate, vehicles must meet certain criteria, such as CO2 emissions below 50 g/km or a purely electric range of at least 40 km. The E-license plate is not mandatory, but offers incentives for the purchase of electric cars.

In addition to the environmental badge required to drive in low emission zones, electric vehicles can benefit from a temporary vehicle tax exemption. The obligation to insure remains unaffected by the tax exemption. The E-license plate can be applied for at the time of new registration or subsequently and is valid indefinitely.

The cost of registration is around 50 to 60 euros, plus insurance costs. This amount is made up of the costs for the E-license plate (approx. 30€) and the processing fee (20-30€) of the respective registration office. The E-license plate is part of the Electric Mobility Act, which is intended to promote the use of electric vehicles, and offers special rights that serve as an incentive to buy. It can also be combined with a seasonal license plate.

What are the costs of taxes?

Electric cars often enjoy tax advantages. You can be exempt from road tax for a certain period of time or pay a reduced rate.

Tax advantages for electric cars

Motor vehicle tax exemption

Pure electric cars that were or will be registered for the first time between 18 May 2011 and 31 December 2025 are exempt from motor vehicle tax for up to ten years. This exemption is limited until December 31, 2030, which means that new buyers will no longer be able to take advantage of the full ten-year period. In the event of a change of ownership, the tax exemption is passed on until the end of the ten-year period or until 2030.

No tax exemption for plug-in hybrids

This regulation does not apply to plug-in hybrids, as the state wants to promote only pure electric vehicles.

Discounts for company cars

The taxation of electric vehicles as company cars is often cheaper than for company cars with combustion engines, which creates an additional financial incentive.

After the expiry of the tax exemption, which ends for electric cars after the eleventh year of first registration or at the latest from 1 January 2031, the motor vehicle tax for electric vehicles up to 3.5 tonnes will be calculated according to the permissible total weight (GVW).

The tax is then per 200 kilograms or part thereof:

• Up to a total weight of 2,000 kg: 5,625 euros
• Up to a total weight of 3,000 kg: 6.01 euros
• Up to a total weight of 3,500 kg: 6.39 euros

Despite the introduction of this tax, electric cars remain more tax-efficient compared to similar combustion models. Here is an example to illustrate:

Example: VW ID.4 Pure (compact SUV, construction period: since 2020)

• Permissible total weight: 2,480 kg
• Calculation: 2,480 kg / 200 kg = 12.4 (rounded to 12)
• Motor vehicle tax: 12 x 6.01 euros = 74.52 euros (rounded up to 75 euros)

This example shows that the motor vehicle tax for electric cars remains comparatively low even after the tax exemption is abolished. However, it is important that you check the exact figures, as the tax is rounded up to the nearest full euro and the regulations are subject to change. You can use the vehicle tax calculator of the Federal Ministry of Finance to calculate your vehicle tax. HERE it goes to the calculator.

What are the costs of car insurance?

Electric car insurance takes into account specific risks that differ from those of conventional vehicles, such as damage to electronics, battery and charging cables. Motor vehicle liability insurance is required by law and covers damage to third parties, while partial and fully comprehensive insurance offers additional protection for your own vehicle.

Important benefits that should be included in the insurance are:

• covers for animal bites,
• Theft of the charging cable,
• Surge damage and
• Battery diagnostics.

Comprehensive insurance, which is often cheaper than partial comprehensive insurance, is particularly recommended for new or financed electric cars. Insurance costs are influenced by factors such as type class, no-claims class and annual mileage, although higher no-claims classes and deductibles can reduce premiums. In order to save costs, it is advisable to compare insurance offers and adapt the scope of insurance to individual needs.

This structured overview can serve as a basis for you. In this example, the insurance costs for the electric vehicle are based on the VW ID.4 Pure model. Please note that the actual cost of insurance may vary depending on individual circumstances and insurance provider.

What are the costs for the maintenance of e-cars?

Electric cars are characterized by their energy efficiency and lower maintenance requirements compared to conventional combustion engines. This results in lower maintenance costs and makes them an attractive alternative for car owners.

Factors Affecting Maintenance Costs

Consumables

The cost of replacing wear parts such as cabin filters or brakes affects the overall cost of maintenance.

Maintenance of parts

Regular maintenance of the engine and other important components is required, with costs varying depending on the manufacturer and model of the electric car.

Manufacturer

Some manufacturers offer cheaper maintenance costs, while others, such as Tesla or Mercedes-Benz, charge higher prices.

Working time

The duration of the inspection and the number of employees involved can also affect costs.

Tip for choosing a workshop

A trusted workshop will always provide an estimate and explain the need for the work before it is carried out. Unforeseen work should also be announced in advance.

Average cost of servicing an electric car

The cost of maintaining an electric car averages between 100 and 300 euros, depending on the model, manufacturer and amount of work. Compared to combustion engines, the maintenance costs for electric cars are usually cheaper because there are fewer components that are susceptible to wear. A small inspection of electric cars differs between manufacturers. For example, Renault can expect costs from 250 euros, Mercedes, for example, costs between 200 and 250 euros, while Tesla costs start at 500 euros.

In our example of the VW ID.4 Pure, a service plan of between 150 and 200 euros per year can be expected. These costs are only indicative and may vary depending on the region and workshop. It is advisable that you get a quote before the inspection and compare prices to find the best option for your electric car.

What are the costs for charging the electric vehicle?

The cost of charging an electric car depends on the capacity of the battery and electricity prices. Charging at home is often cheaper than at public charging stations. Since October 2021, petrol stations in Germany have been obliged to offer an energy cost comparison for cars. This comparison shows the costs of different energy sources – such as petrol, diesel, electricity, natural gas, LPG and hydrogen – per 100 kilometres.

What costs are periodically incurred for electric cars?

Electric cars are known for their lower operating costs, but there are still regular costs that owners should factor in. Here we give you an overview of the periodic costs:

Electric car costs per 100 km

The cost per 100 kilometers depends heavily on the vehicle's power consumption and electricity costs. An average electric car consumes about 15 to 20 kWh per 100 kilometers. With an electricity price of 0.30 euros per kWh, the costs would thus be between 4.50 and 6.00 euros.

Monthly cost of an electric car

Monthly costs can vary, but they usually include:

• Electricity costs: Depends on mileage and electricity tariff.
• Insurance: Monthly premiums for car insurance.
• Financing: Installment payments if the vehicle has been financed.

Annual cost of an electric car

Annual costs include:

• Maintenance and inspection: Although lower than with combustion engines, there are still costs for routine checks.
• Tyre change: costs for summer and winter tyres and their change.
• Road tax: If applicable, after the tax-free period.
• GHG premium: Income from the sale of the GHG quota can reduce annual costs.

Please note that this table is only an average and actual costs may vary depending on individual circumstances, vehicle model and local electricity prices.

What significance do the GHG quota and the GHG premium have for your costs?

The state subsidy for electric cars, known as the environmental bonus, was granted until December 17, 2023 and offered up to 6,750 euros in support. Since 2024, this direct subsidy has no longer been available, but some car manufacturers continue to offer their own bonuses.

In addition, electric car owners can receive an annual premium through the greenhouse gas reduction quota (GHG quota) and benefit from tax advantages. Electric cars are also exempt from vehicle tax until the end of 2025, and after this period, the tax for electric cars will be cheaper than for combustion engines.

Apply for up to 300 euros annually for your electric car. With an electric car, you can not only protect the environment, but also benefit financially by selling saved CO2 via the greenhouse gas reduction quota (GHG quota) and thus securing the GHG premium.

GHG premium 2024: In a nutshell

The GHG quota is a legal requirement that obliges companies in the petroleum industry to reduce their greenhouse gas emissions. As an electric car owner, you can sell your CO2 savings in the form of a certificate and thus benefit from the GHG premium.

Application deadline

The deadline for the 2024 GHG premium is 15 November 2024, and it is recommended that the application be submitted by 31 October 2024 at the latest.

Premium amount

The amount of the GHG premium is subject to change. In 2023, up to 300 euros could be achieved.

Procedure

Choose a service provider who will take over the sale of your saved CO2. Compare the offers, for example at Verivox, and pay attention to a high fixed minimum payment.

Advantages

In addition to the lower environmental impact, electric cars also offer financial incentives such as the GHG premium. This bonus is an annual payment that you receive for the CO2 savings of your electric car, as you contribute to the reduction of greenhouse gases.

How do you sell your GHG quota in 2024?

• Choose a provider: Find a service provider who will handle the sale for you
• Submit vehicle registration document: Send the provider a photo of your vehicle registration document.
• Federal Environment Agency audit: Your documents will be sent to the Federal Environment Agency and checked.
• Payment of the GHG premium: After successful verification and sale of the certificate, you will receive your premium.

How high is the GHG premium currently?

The exact amount of the GHG premium for 2024 is similar to 2023 about 300 euros. Premiums can fluctuate depending on market value, so it's worth comparing offers regularly. The GHG premium is an attractive way to reduce the costs of purchasing and operating an electric car. By selling your CO2 savings, you can receive an annual financial bonus that makes the switch to electric mobility even more worthwhile.

What are the costs of having your own charging stations?

For many electric car owners, the purchase of their own charging station, also known as a wallbox, is a worthwhile investment to increase the convenience and efficiency of charging at home. But what are the associated costs? Short:

• Historical cost
• Electricity
• Maintenance costs
• Insurance

Historical cost

The cost of a wallbox varies depending on the performance and range of functions. Simple models start at around 500 euros, while high-quality charging stations with additional features such as intelligent control or higher charging power can cost up to 2,000 euros or more.

Installation

In addition to the purchase price of the wallbox, the installation costs must also be taken into account. These can vary depending on the effort required for installation and the necessary electrical adjustments in the house. These include, for example:

• Electrical connections: Costs for laying wiring or setting up a new power connection.
• Installation: Cost of mounting the wallbox on the wall or on a stand.
• Safety devices: Installation of safety devices such as residual current circuit breakers (RCDs) or miniature circuit breakers.

Operating costs

The running costs of operating your own charging station are essentially the electricity costs. These depend on your own electricity tariff and the consumption of the electric car. Some energy suppliers offer special tariffs for electromobility that allow charging at night at a lower price.

Maintenance costs

The maintenance costs for a wallbox are usually low. However, it is advisable to have the charging station regularly checked for functionality and safety. In summary, the total cost of owning your own charging station, including purchase, installation and operation, can vary, but through government subsidies and the long-term savings in charging costs, the investment can quickly pay for itself.

Insurance

In Germany, it is not uncommon for there to be a suitable insurance policy for almost every risk. Especially with expensive capital goods such as wallboxes, the practical charging stations for electric cars at home, the question arises: Do you need extra insurance for wallboxes? Wallboxes can be permanently installed or mobile, which entails different risks.

In the case of permanently installed wallboxes, the focus is on damage caused by external influences or incorrect operation, while in the case of mobile wallboxes, theft protection also plays a role. There is no compulsory insurance for wallboxes. So check your insurance portfolio, because the protection of your charging station against risks is in your hands. Existing insurance policies could already cover some risks. It is worth checking the tariff details of your motor vehicle hull, household contents and motor vehicle liability insurance.

Enclosed you will find answers to the most frequently asked questions about insuring charging stations:

What risks can occur with a permanently installed wallbox?

Wallboxes are often installed in publicly accessible areas, which increases the risk of damage. Classic risks include theft, vandalism, water damage, marten bites or lightning strikes. Damage caused by starting off while parking is also possible.

What damages does hull insurance cover?

Comprehensive insurance usually covers damage caused by the wallbox to the electric car. The wallbox itself is often included in many tariffs. If this is not the case, a separate insurance policy may be necessary.

When does motor vehicle liability insurance apply?

If you cause damage to a wallbox with your car, motor vehicle liability insurance usually applies. In the case of defects in the car that lead to damage to the wallbox, a case-by-case examination usually takes place.

When does theft and household contents insurance apply?

Household contents insurance can cover theft if you have the wallbox included in your tariff. Permanently installed wallboxes can also be insured as building accessories in residential building insurance.

Who insures wallboxes?

Many large insurance companies offer e-car tariffs, which are part of the comprehensive insurance. Get advice and pay close attention to what is included in the insurance.

How much does wallbox insurance cost?

The cost of wallbox insurance can vary and depends on various factors, such as the insurance provider, the scope of coverage, and the individual circumstances of the wallbox's location. As a rule, the costs for wallbox insurance are part of the motor vehicle hull insurance or can be integrated as an add-on to household or residential building insurance.

The tariffs for permanently installed wallboxes can be included in the partial comprehensive insurance and usually cover damage caused by overvoltage, theft, vandalism as well as animal bites and short-circuit damage. The premium amount for these additional covers may vary depending on the insurance company and the tariff chosen. To get accurate prices, it is advisable to inquire directly with the insurance providers or use online comparison portals to check the different offers.

Some insurers offer special rates for electric car owners that include wallbox insurance at a low price. It is important to note that not all insurance policies automatically cover damage to wallboxes, so you should check the insurance conditions carefully and, if necessary, take out special wallbox insurance to ensure comprehensive protection.

Tips for reducing the cost of the wallbox

Use funding programs

In Germany, there are subsidy programs that can subsidize the costs of purchasing and installing a wallbox. These subsidies can significantly reduce the acquisition costs and thus make the investment more attractive.

Charge efficiently and save costs with charging and load management

The introduction of charging infrastructure for electric vehicles in buildings represents an additional burden on grid connection. To increase efficiency and save costs, intelligent load management is essential. This ensures optimized control of the charging processes and thus prevents expensive expansion of the grid connection.

Car electricity tariffs: Efficient charging of electric cars at home

Charging an electric car at home is often cheaper than at public charging stations. Since 2024, there have been new regulations for special car electricity tariffs that can make charging at home even cheaper. These tariffs are often cheaper than conventional household electricity because they benefit from reduced grid charges.

What is a car electricity tariff?

Car electricity tariffs are special offers from energy companies for charging electric cars at home. They are often cheaper than the standard tariff and no longer require a separate electricity meter. These tariffs are considered large consumers and can benefit from reduced network charges if they are considered taxable consumption devices.

Advantages of car electricity tariffs

• Cost efficiency: Frequent drivers can benefit from up to 30 percent lower consumption prices.
• No need for a second meter: A separate electricity meter is no longer required for newly installed wallboxes.
• Grid-friendly charging: Reduced electricity prices are offered as a reward for grid-friendly charging.

Costs for car electricity tariffs

The costs for pure car electricity tariffs can be up to 30 percent lower than for household electricity. The exact costs depend on your own consumption and where you live. On average, a kilowatt hour of car electricity is around 4 to 5 cents cheaper than household electricity.

When is a car electricity tariff worthwhile?

A car electricity tariff can be worthwhile if you drive more than 10,000 kilometres per year and charge mainly at home. The savings in electricity procurement can exceed the costs for a second meter, so an individual calculation makes sense.

A second electricity meter

A second electricity meter is no longer mandatory, but may be necessary for exact billing of charging electricity and for reduced grid charges according to certain modules. The cost of an additional meter depends on the conditions at home.

Charging with household electricity

Charging with household electricity is possible in principle, but a comparison with special car electricity tariffs can be worthwhile, especially after the price fluctuations in the wake of the energy crisis.

Finding a car electricity tariff

Online comparison portals can be used to find a suitable car electricity tariff, but it is also advisable to do your own research or inquire with local public utilities. It is important to check the tariff details carefully and to pay attention to the best overall package. Charging an electric car at home with a car electricity tariff can be a cost-effective and convenient solution. It is important to compare the different offers and choose the option that suits you.

10 tips: How to reduce the cost of the electric car?

Switching to an electric car has many advantages, but also some costs. Fortunately, there are several ways to reduce these costs. Here are some helpful tips:

• Take advantage of subsidies: Find out about local and national subsidy programs that offer financial support for the purchase of an electric car.
• Sell GHG quota: Register your electric car for the GHG quota and sell the CO2 savings to receive up to 300 euros or more annually.
• Choose cheap electricity tariffs: Compare electricity tariffs and choose a provider with favourable conditions for electric car owners. Use night-time electricity tariffs or special e-mobility tariffs for charging your vehicle.
• Consider your own solar system: Your own photovoltaic system on the roof can provide the electricity for charging the electric car and save enormous operating costs in the long term.
• Intelligent charging through load management: Use a load management system to optimize charging and avoid peak loads, resulting in lower grid usage charges.
• Insure your wallbox correctly: Check your existing insurance policies and, if necessary, supplement a wallbox insurance policy to be protected against damage.
• Minimize maintenance costs: Benefit from lower maintenance costs of electric cars compared to combustion engines, as fewer wearing parts and fluids are needed.
• Take advantage of tax advantages: Save through tax advantages! Electric cars are often exempt from motor vehicle tax or benefit from reduced taxation.
• Buy a used electric car: Consider whether a used electric car is sufficient for your needs, as these are often much cheaper.
• Adapt driving behaviour: Drive efficiently and use recuperation to reduce energy consumption and maximise range.

Costs for electric cars: conclusion

Buying an electric car is a decision that not only benefits the environment, but can also be financially beneficial for you. Looking at the total costs, which range from purchase to operation and maintenance, electric cars prove to be a cost-efficient alternative to vehicles with combustion engines in the long term.

The higher acquisition costs can then be offset by lower maintenance costs and additional income from the sale of the GHG quota. In addition, the running electricity costs are usually significantly lower than the costs of gasoline or diesel, which results in long-term savings.

Charging your electric car at home with a special car electricity tariff can be a cost-effective and convenient solution. Intelligent load management during charging is not only technically sensible, but also financially attractive, as it helps to avoid high costs for load peaks. As an electric car owner, you also benefit from tax advantages and a lower vehicle tax.

Overall, electric cars are a worthwhile investment due to their environmental friendliness and financial benefits. The cost is lower in the long term compared to internal combustion engines, and this trend is expected to continue as technology advances, battery prices fall, and charging infrastructure continues to improve. If you're considering switching to electric mobility, consider the long-term financial benefits in your decision-making.