Budgeting for an EV: Key Costs to Consider in your Green Shift

With fuel rates rising nationwide, more Aussie drivers are making the switch to EVs in droves, with EV adoption trends rising astronomically in recent months. EV sales rates rising in direct response to fuel fluctuations also comes after extensive investment from both Federal and State Governments in EV rebate programs, spanning from the ongoing Zero Emission Vehicle Threshold safeguarding EV models up to a certain value from the Luxury Car Tax, as well as programs that are now closed, like the Zero Emissions Vehicle Subsidy.

Despite the fact that no rebates are currently available for supporting Victorians looking to make the switch to EV driving, buyer interest in EVs remains steady, which means one thing: consumers are recognising the cost-value of EV driving independently.

It’s natural to want to avoid being gouged at the bowser, but consumers are also advised that making the switch to EV cruising isn’t a decision that can be made overnight – especially for households who’ve already got a full garage. So how do you know you’re ready to pull the trigger on a newer, greener ride?

Outside of the initial purchase price of your new EV, there are additional ownership costs that need to be considered when establishing your buyer’s budget. Keep reading to learn what these costs are so you can make a more informed decision on whether purchasing an EV is the right choice for your household.

Insurance and registration

Whilst most drivers may be happy enough with 3rd party car insurance for a secondhand combustion engine vehicle, this option isn’t the safest insurance strategy for EVs. In most cases, EV drivers benefit from securing comprehensive car insurance for their electric vehicles. This is not only to ensure cover for these higher value vehicles in the event of an at-fault motor accident, but also to ensure cover for EV accessories like charging cables and adaptors, which can be expensive to replace if lost, stolen, or damaged.

EV values for secondhand models are also still trending higher than their used combustion engine vehicles – so even if you buy your first EV from a secondhand dealer, you should still anticipate taking out comprehensive insurance cover.

Alongside annual insurance premiums, EV drivers will naturally also need to factor in vehicle registration costs. Note that Victoria’s EV registration discount ended on January 1st 2026, so all EVs purchased this year will maintain the same registration rates as combustion engine vehicles.

Repairs and maintenance

Less moving parts translates to simpler routine maintenance for EVs in comparison to combustion engine vehicles. But this doesn’t make EV servicing and maintenance substantially cheaper than traditional cars. In fact, with the price of EV batteries still soaring high, repairs or battery replacement for your EV may even end up being more expensive than what you’d comparatively spend on servicing for a combustion engine vehicle under 10 years old. 

Repair and maintenance cost estimates may also be impacted by the specific operational issues of the vehicle you end up purchasing. This is where pre-purchase research can potentially help you save tens of thousands of dollars. Assessing vehicle buy and sell history alongside checking for a full servicing and maintenance history with no gaps and other points of due diligence, can help reduce your risks of buying a lemon.

Electric charging

While owning an EV or hybrid will help your household cut down significantly on fuel expenses, there are still costs involved with charging your car daily. If you don’t have access to an exterior power point for vehicle charging at home, for instance, then you may need to factor in electrician fees for having the necessary works completed on your property.

The alternative to home charging is of course, taking advantage of public charging stations, which are growing in number across Victoria’s regions. However, even though there is still undeniably strong civil investments into public EV charging stations, there still aren’t enough public chargers for every local EV driver. And if you’re counting on the same charger being available daily (i.e. a charger located by your workplace, for instance), you may end up waiting more than you end up charging.

Over the long term, using a home EV charger is more time- and cost-effective than relying solely on public EV chargers. And if you’re using rooftop solar panels to power your EV charger, the cost savings grow even more competitive.

Prospective EV drivers are encouraged to consider the costs and convenience of home charging infrastructure when preparing their car buying budget. Even if you don’t invest in home charging immediately after your vehicle purchase, accounting for an EV charger investment in even just the first few months following your purchase can help keep you smiling behind the wheel.

Vehicle values and depreciation

As mentioned above, EV market values are still higher on average when compared to combustion engine vehicles, even in secondhand markets. Despite this, EVs still fall victim to depreciation, and this should be factored into your EV buying strategy. 

For instance, if you’re looking to buy to sell (i.e. buy at a higher market value and sell at a similar value after a period of personal use), a more discerning approach will be needed when finding the right investment opportunity for you.

Contrastingly, if you’re looking to drive your EV for years before you consider reselling, depreciation rates might not be as big a factor for you when comparing different makes and models. Ultimately, it’s up to every car shopper to decide what metrics matter most to them in their purchasing decision and investment strategy.

Finetune your EV buying budget with these considerations in mind

For families looking to upgrade to a brand new electric vehicle, shopping for an EV can naturally be very exciting. But like most big purchases, it’s best to proceed with a slow and measured approach. After all, there’s no rush. With supply lines steady and consumer interest maintained, more EVs are landing on Australian shores annually, meaning choices for car shoppers will only continue to grow across both new and used car markets. Consumers can freely wait for their budget to build and for the stars to align before embarking on their green shift.

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