Electric cars now cheaper than petrol on average as pricing gap flips

New electric cars are now, on average, cheaper than petrol models for the first time, according to Auto Trader, signalling a major shift in EV affordability.

Latest data shows the average new EV is priced at £42,620, compared to £43,405 for a petrol equivalent – a £785 gap in favour of electric. The shift has been driven by sustained discounting and government support, with EV discounts still averaging 11.7% in April.

For drivers, this marks a turning point. Upfront cost has long been one of the main barriers to switching, but that gap is now starting to close and in some cases, reverse entirely.

Demand is already responding. Visits to Autotrader’s new car platform are up around 20% year-on-year in April, while supply has increased by 13% as manufacturers push more stock into the market.

However, attention is now shifting to running costs. ChargeUK chief executive Vicky Read said the “final hurdle is public charging”, particularly for drivers without home charging access.

She pointed to higher VAT rates on public charging and rising infrastructure costs as key issues, calling for policy changes to make EV ownership more accessible.

With pricing now competitive, the next phase of EV adoption is likely to depend less on vehicle cost and more on how affordable and accessible charging becomes.

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