Why ‘Cost’ Means More Than the Price Tag
For tradesmen and small business owners, buying a van isn’t just an expense — it’s an investment in your ability to work, deliver, and grow. But when it comes to electric vans, the conversation often stops at the purchase price.
That’s a mistake.
The true cost of owning an electric van in the UK goes far beyond what you pay on day one. It includes fuel (or charging), servicing, tax, insurance, depreciation, and even zone charges. And when you add it all up, the numbers can surprise you — in a good way.
Purchase Price: The First Big Hurdle
Yes, electric vans generally have a higher upfront cost than their diesel counterparts. But that gap is closing fast, thanks to two key factors:
The Plug-In Van Grant – Up to £5,000 off a qualifying electric van, applied instantly at purchase.
Manufacturer Offers – More brands are offering competitive finance or lease deals to encourage adoption.
For example, if a diesel van costs £38,000 and a comparable electric van costs £43,000, the grant brings that electric van down to £38,000 — wiping out the price difference before you even leave the forecourt.
Charging vs Fuel: The Day-to-Day Savings
For most tradesmen, fuel is one of the biggest ongoing expenses.
Typical diesel costs:
£1.55 per litre (as of early 2025)
A medium van doing 35 mpg over 15,000 miles/year costs roughly £3,000–£3,200/year in diesel
Typical electric charging costs:
Home charging overnight on an off-peak tariff: ~12–15p per kWh
Equivalent mileage cost: £700–£900/year
Public rapid charging is more expensive (30–60p per kWh), but even with mixed charging, annual costs rarely exceed £1,400/year
That’s a potential saving of £1,500–£2,500/year just on fuel.
Servicing and Maintenance: Less to Go Wrong
Electric vans have fewer moving parts than diesel models, which means fewer things to maintain or replace.
Electric van advantages:
No oil changes
No exhaust system or DPF filters to clog
Regenerative braking reduces brake wear
Fewer mechanical components like clutches or gearboxes
Average servicing costs for an electric van are around 20–30% lower than for a diesel equivalent. Over 5 years, that’s often £1,000–£1,500 saved.
Tax and Zone Charges: Where EVs Win Big
Electric vans currently enjoy some major tax benefits in the UK:
Road tax (VED): £0/year for fully electric vans
Benefit-in-Kind (BiK): Lower rates for company-provided vans
ULEZ/CAZ charges: £0/day — saving up to £12.50 each time you enter a restricted area
For tradesmen working in or near London, Birmingham, Bristol, or other Clean Air Zone cities, these savings add up quickly. Two days a week in London’s ULEZ could save £1,300/year compared to a non-compliant diesel.
Insurance: The Mixed Picture
Historically, insurance for electric vans has been slightly higher due to higher repair costs and fewer specialist repair centres. However, as EV adoption grows, more insurers are offering competitive rates — especially for experienced drivers with no-claims bonuses.
Many tradesmen now find premiums within £50–£150/year of diesel equivalents, and that difference is often offset by other savings.
Depreciation and Resale Value
EV depreciation used to be a concern, but demand for used electric vans is now increasing as more businesses look for affordable ways to meet emissions regulations.
Well-maintained electric vans with decent battery range are holding their value better than expected, especially in urban areas where diesel restrictions are tight.
The Five-Year Cost Comparison
Let’s put it all together for a typical UK tradesman covering 15,000 miles a year:
Cost CategoryDiesel VanElectric Van (with Grant)5-Year SavingFuel/Charging£15,500£4,500–£7,000£8,500–£11,000Servicing/Maintenance£5,000£3,500–£4,000£1,000–£1,500Road Tax£1,750£0£1,750ULEZ/CAZ Charges£6,500 (if 2 days/week)£0£6,500Total (5 years)~£28,750~£8,000–£11,500£17,000–£20,000
Even if purchase prices are equal, the electric van wins comfortably over a standard ownership cycle.
Intangible Benefits That Also Impact the Bottom Line
There are other factors that don’t always make it into the spreadsheet but still affect your business:
Customer perception: More clients are asking about green credentials, especially for commercial contracts.
Driver comfort: Quieter, smoother rides mean less fatigue, which can lead to higher productivity and fewer mistakes.
Access to jobs: Some clients won’t work with non-compliant vehicles in restricted zones.
Common Concerns — And Why They’re Less of an Issue Than You Think
“What if the battery degrades?”
Modern EV batteries often come with 8-year warranties and have proven to retain over 80% capacity well past that time frame.
“What if I can’t find a charger?”
The UK public charging network is growing rapidly, with thousands of new chargers installed in the past 12 months alone. Many businesses install their own workplace charger for convenience.
“What if I need more range?”
Plan your routes with charging stops if needed — and remember, most tradesmen don’t actually cover more than 120 miles in a day.
Conclusion: The Numbers Speak for Themselves
When you look at the full picture, the true cost of owning an electric van in the UK often comes out lower than diesel over 5 years, even if the upfront price is the same or slightly higher.
For tradesmen and small businesses, that means more predictable running costs, fewer surprise repairs, and the ability to take on work anywhere without worrying about charges or restrictions.
The only way to know if it fits your workflow is to try it. Book a 24-hour test drive and see how the costs — and the comfort — add up for yourself.
Aug 17, 2025
