When purchasing a green car, the initial outlay for the vehicle is usually more expensive. For example, an electric car will cost more than a small petrol car and hybrids command a premium for the advance technology they use.
If running a vehicle on an alternative fuel, such as LPG, CNG or Ethanol, these usually entail a conversion cost of approximately £1200 – £2000.
This is not always the case though. The most fuel efficient and greener petrol vehicles tend to be the smaller engines super minis which make up the range introduction. These are sold in huge volumes and therefore the initials outlay is higher. Diesel equivalents are usually an additional £500 to £1000 compared to the petrol version.
There may also be grants available. At the time of writing, £5,000 grants are available on selected electric cars. Please visit our electric car pages for details
Savings come in a wide range of forms. The more efficient vehicles burn less fuel (or no fuel in the case of electric vehicles), therefore making savings at the pump. With petrol prices at record highs this is always an important factor to new car purchases whether they are green conscious or not. Alternative fuels are not subject to as high as tax rate as petrol and diesel and therefore the price per litre is usually cheaper too.
Car Depreciation Costs
After fuel costs, the second biggest cost is depreciation. As there is becomes a larger demand for greener vehicle, hybrid, electric and bi fuel vehicles no longer depreciate as much as before and industry figures suggest they may now be level to than of an average vehicle as more dedicated green showrooms drive up demand.
Green vehicles receive further benefit is tax breaks too. Road tax is now calculated on your vehicles CO2 emissions. Therefore the lower the emissions, the less you will pay. A full guide can be found here (Green Car Tax). Company car users also pay tax on their vehicle based on its CO2 emission on a sliding scale. This ranges from % to 35%. Details of which are found here at Green Car Tax.
Congestion Charge Savings
The greenest vehicles are also exempt form paying the London Congestion Charge. If you enter into the charging zone you car charged £8 per day. For someone entering everyday, this can be a huge saving. For full details, visit our congestion charging page.