The Real Cost of Ownership: Five-Year Totals for Petrol vs. Hybrid vs. EV

> 📊 METHODOLOGY GUIDE. This explains how to calculate a genuine total for your own circumstances. Costs vary enormously by market, mileage, tariff and vehicle — use your own figures rather than illustrative ones.

Why most comparisons are wrong

Almost every "cost of ownership" comparison compares fuel against electricity and stops.

That's the least useful version of the calculation, because — as our fleet cost analysis established — fuel is rarely the largest cost of running a car.

Depreciation usually is, and omitting it can reverse the conclusion entirely.

Here's how to build a genuine five-year total.

The seven components

1. ⭐ Depreciation — usually the largest.

Purchase price minus realistic five-year value.

Use actual market data, not manufacturer optimism. And note our EV depreciation finding: electric residuals have been genuinely volatile — rapid technological improvement, price cuts and battery-health caution all suppressing used values.

This is the single biggest variable, and it's the one most comparisons omit.

2. Fuel or energy.

Annual mileage × consumption × price.

⚠️ For EVs, the critical distinction: home charging on a domestic tariff versus public rapid charging. As our public-charging diary found, the difference is substantial and it materially erodes the EV advantage.

Use your actual charging mix, not an assumption that you'll always charge at home.

3. Servicing.

EVs are genuinely cheaper here — no oil, no filters, no exhaust, and far less brake wear thanks to regeneration. As our service coverage noted, this advantage is under-quantified.

Use actual quoted costs, not indicative ones.

4. Tyres.

Frequently omitted, and EVs are harder on them — instant torque and extra weight. A partial offset to the servicing saving that's rarely mentioned.

5. Insurance. Differs by powertrain and value.

6. Repairs outside warranty. Budget a contingency — as our new-versus-used comparison argued, 10–15% is a reasonable reserve.

7. Taxation and charges. Road tax, congestion or emissions charges, parking. Varies enormously by market.

What the answer usually looks like

We won't give you a single number, because there isn't one. But the shape is consistent:

⭐ EVs typically win on running costs — IF you charge at home.

Energy is cheaper than fuel on a domestic tariff, and servicing is substantially cheaper. Over five years, that accumulates meaningfully.

⚠️ EVs may lose on total cost if residuals underperform.

This is the finding that surprises people. As our cost-per-mile analysis put it: an EV that's cheapest to run can still be the most expensive to own.

Full hybrids are the consistent middle. Reliable efficiency gains, no infrastructure requirement, no residual volatility. As our powertrain comparison concluded, they have the fewest compromises for the most people.

Petrol wins on purchase price and loses on running costs — and remains the right answer for tight budgets, heavy long-distance towing and areas with no infrastructure.

In India, CNG is exceptionally strong above roughly 60 km/day — as our CNG comparison established, though with the boot compromise, the maintenance requirements and the station queueing.

⭐ The variables that change everything

1. Annual mileage.

This is the biggest swing factor and it's routinely underweighted.

High mileage amplifies running-cost differences and dilutes depreciation per mile. Low mileage does the reverse — at 5,000 miles a year, depreciation dominates completely and fuel barely matters.

A cost comparison without your mileage is meaningless.

2. Charging access. As established throughout our coverage — this determines the EV answer entirely.

3. How long you keep it. Five years is a convention. As our loan analysis noted, keeping a car past the payments is the cheapest motoring most people get — and a ten-year calculation looks quite different from a five-year one.

4. Your market. Tax, duty and incentives vary enormously, as our three-market comparison documented.

How to actually do it

1. Get a realistic five-year residual estimate for the specific vehicles you're comparing.

2. Use your genuine annual mileage.

3. For EVs, use your realistic charging mix — home and public.

4. Get actual servicing quotes, not indicative figures.

5. Include tyres.

6. Add a repair contingency.

7. Compare the totals — and also compare excluding depreciation, because that tells you your monthly outgoings while the total tells you what it cost.

Both numbers are useful. They answer different questions.

The bottom line

Most cost comparisons omit depreciation, which is usually the largest expense — and that omission can reverse the conclusion.

EVs typically win on running costs if you charge at home, and may lose on total cost if residuals underperform. Full hybrids are the consistent middle with the fewest compromises. Petrol remains right for tight budgets and heavy towing.

The two variables that change everything are your annual mileage and your charging access — and a comparison that doesn't use your actual figures is describing somebody else's car.

Calculate it for your own life. As our cost-per-mile analysis concluded, that habit is the single most valuable one in car buying — and almost nobody does it.

• Most comparisons omit depreciation — usually the largest cost — and that omission can reverse the conclusion entirely
• Seven components: depreciation, energy, servicing, tyres, insurance, repairs and taxation — with tyres and repairs routinely forgotten
• EVs typically win on running costs if you charge at home, and can still lose on total cost if residuals underperform
• Annual mileage is the biggest swing factor: at low mileage depreciation dominates and fuel barely matters; high mileage reverses it
• Calculate it with your own figures — a comparison using someone else's mileage and charging mix is describing someone else's car

Key takeaways

• Most comparisons omit depreciation — usually the largest cost — and that omission can reverse the conclusion entirely
• Seven components: depreciation, energy, servicing, tyres, insurance, repairs and taxation — with tyres and repairs routinely forgotten
• EVs typically win on running costs if you charge at home, and can still lose on total cost if residuals underperform
• Annual mileage is the biggest swing factor: at low mileage depreciation dominates and fuel barely matters; high mileage reverses it
• Calculate it with your own figures — a comparison using someone else's mileage and charging mix is describing someone else's car