Australians could save up to $1,500 a year by switching to electric vehicles, according to Compare the Market’s latest analysis of car running costs across three similarly priced medium SUVs.
The study compared the petrol-powered Mitsubishi Outlander, the hybrid Toyota RAV4, and the fully electric BYD Sealion 7.
While EVs typically cost more upfront, the BYD’s lower fuel and servicing costs helped it edge out its rivals with the lowest total annual running cost of $16,338.83.
The RAV4 Hybrid followed at $16,640.07, while the Outlander was highest at $18,270.40.
The report factored in loan repayments, servicing, fuel or charging, insurance, and registration.
Charging the BYD at home on a standard electricity plan costs just $778 annually, compared to $1,304 for the hybrid and $2,247 for the petrol SUV. Insurance premiums varied widely, but BYD's average quote was comparable to the others.
“Choosing a more fuel-efficient hybrid or full electric model can help to significantly reduce some costs,” said Compare the Market’s Economic Director David Koch. He also noted that green loans and fringe benefits tax exemptions could further boost savings for eligible buyers.
The findings reinforce a growing trend: electrified vehicles are not only environmentally responsible but increasingly cost-effective.
With banks offering discounted interest rates for green loans and governments incentivising EV adoption, the financial case for electric mobility is strengthening.
As fuel prices remain volatile and insurance premiums fluctuate, savvy investors may find long-term value in portfolios that include sustainable transport assets and green infrastructure.
